Presentation Title:

Evolution of Utility Rebates for Energy Storage

Track I: Decarbonization and Electrification

Session I2: Energy Storage

Day 2  10:00 am

Speaker(s):

Abstract:

Utilities began promoting thermal energy storage as a way to avoid construction on new coal and nuclear plants starting in 1990. They offered large rebates. With utility deregulation, utilities could bid for new generation provided by combustion turbines. Regulators switched rebates to focus on kWh savings. Some utilities continued to offer rebates. In 2022, the federal government recognized that energy storage was essential if we are to achieve 100% renewable energy on the grid. Rebates for energy storage began to emerge. Rates were modified to encourage storage. To qualify for the new rebates, thermal storage was rebranded as thermal batteries. Thermal batteries qualify for a 40% investment tax credit and are now the lowest first cost option for central plants.