U.S. On-Site Battery Storage Opportunities

Key Takeaways

• Massachusetts and New York offer the highest near-term battery incentives. A 1 MW/4 MWh battery in Massachusetts can earn $2.9–5.1 million over 10 years from stacked programs. In New York, a 5 MW/20 MWh battery could earn at least $29 million over 25 years through the Value of Distributed Energy Resources (VDER) tariff payments.
• New programs in New Jersey and Maryland. New Jersey plans $150–200/kWh in new rebates covering up to 40% of battery costs. Maryland utilities will need to submit procurement plans for 150 MW of distributed storage under the Next Generation Energy Act in 2026. Early movers with site control can likely capture the highest incentive tiers across both states.
• Soaring capacity and utility costs strengthen the case for batteries without incentives. PJM capacity charges cost ratepayers over $15 billion a year. Meanwhile, utility demand charges already exceed $40/kW monthly in parts of New Jersey, and Ohio utilities have requested revenue increases of 39–93%. Rate hikes are also accelerating across MISO and New England. Behind-the-meter batteries can offset fast-rising capacity and grid demand charges.