Does state energy storage policy matter?

While decisions carried out by federal regulators and regional market operators have an impact on state energy storage policy, state policymakers—and state legislators in particular—are instrumental in enacting policies that remove barriers to adoption and encourage investment in storage technologies.

What are the different types of energy storage policy?

Approximately 16 states have adopted some form of energy storage policy, which broadly fall into the following categories: procurement targets, regulatory adaption, demonstration programs, financial incentives, and consumer protections. Below we give an overview of each of these energy storage policy categories.

Does the energy storage strategic plan address new policy actions?

This SRM does not address new policy actions, nor does it specify budgets and resources for future activities. This Energy Storage SRM responds to the Energy Storage Strategic Plan periodic update requirement of the Better Energy Storage Technology (BEST) section of the Energy Policy Act of 2020 (42 U.S.C. § 17232 (b) (5)).

What is a storage policy?

All of the states with a storage policy in place have a renewable portfolio standard or a nonbinding renewable energy goal. Regulatory changes can broaden competitive access to storage such as by updating resource planning requirements or permitting storage through rate proceedings.

How can States reduce regulatory barriers to energy storage?

States have also focused on removing regulatory barriers to adopting energy storage by requiring or authorizing utilities to consider energy storage in resource planning and by creating standards for connecting storage resources to the grid.

How can States accelerate energy storage adoption?

Legislatures have taken varied approaches to accelerate adoption of energy storage, with some states enacting energy storage procurement targets and others focusing on creating programs that promote and fund developing technology.

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Project note

This reference is intended for preliminary energy research. Electrical design, capacity selection, safety settings and grid compliance must be verified for the specific site.