Official State of Rhode Island website

State of Rhode Island Office of Energy Resources

Energy Storage Rebates (ESR) Program Summary

Overview 

The Rhode Island Office of Energy Resources (OER) is offering rebates for the purchase and installation of behind-the-meter battery energy storage systems (BESS) up to 250 kW at RI homes and businesses on a first-come, first-reserved basis, funded with proceeds from the Regional Greenhouse Gas Initiative (RGGI). Tier 1 systems ≤25 kW receive $250/kWh up to $8,000 per project ($500/kWh up to $16,000 for income-eligible participants), while Tier 2 systems 25-250 kW receive $175/kWh up to $45,500. 

Background 

Behind-the-meter battery storage delivers multiple benefits to Rhode Island's electricity system, including reduced peak demand costs for ratepayers, enhanced grid reliability through fast-responding dispatchable capacity, lower emissions from displaced peaking generation, and greater renewable energy utilization. The Energy Storage Rebate Program supports Rhode Island's progress toward the 2024 Energy Storage Systems Act's 2026 90 MW storage-deployment target by providing direct financial incentives that reduce upfront project costs and accelerate residential and commercial adoption.

Key Details 

Available Funding  Total: $2,000,000 - Tier 1: $1,300,000 - Tier 2: $700,000  
Resident Eligibility  All RI property owners with an active electric utility account.   
Income Eligibility  Prequalification through Utility, State, or Federal program. 
Application Model  First come, first reserved 
Reservation Period  365 days; up to two 180-extensions may be granted on a case-by-case basis. 
Rebate Paid To  Either Customer or Installer 
Demand Response  Participation required, when available from electric utility 

 

 Tier 1 (≤25 kW AC*)  Tier 2 (25-250** kW AC*) 
Base  Income-Eligible  Base 
Rebate Amount  $250 per kWh nameplate battery capacity  $500 per kWh nameplate battery capacity  $175 per kWh AC nameplate battery capacity 
Maximum Rebate  $8,000 per project  $16,000 per project  $45,500 per project
kWh Size @ Max Rebate  32 kWh  32 kWh  260 kWh

* Maximum system power as reported by utility 

** Residential systems over 50 kW ineligible

Eligibility 

  • Systems must be new installations of behind-the-meter, grid-connected battery energy storage systems as follows: 
    • Tier 1 + All Residential Systems: Must be on Rhode Island Energy’s approved list. 
    • Tier 2: Either on the Rhode Island Energy approved list or must conform with UL9540 including 9540A, UL 1741, and IEEE 1547, and be able to receive remote curtailment signal. 
  • The applicant must reside at the address that is served by an active electric account with Rhode Island Energy, Clear River Electric and Water (CREW) District, or Block Island Utility District. 
  • Income-eligible applicants must provide proof of participation in one of the following programs: 
    • Rhode Island Energy: A-60 Electric Low-Income Discount Rate Customers 
    • Weatherization Assistance Program (WAP) 
    • Low Income Home Energy Assistance Program (LIHEAP) 
    • Supplemental Nutrition Assistance Program (SNAP) 
    • RI Works Program 
    • SSI State Supplemental Payment (SSP) 
    • Medicaid 
    • Housing Program/Section 8 

The rebate process has two steps: reservation and completion. 

Step 1: Reserve your Rebate 

You can apply to reserve a Tier 1 rebate once you have executed an installation agreement with an installer. 

You can apply to reserve a Tier 2 rebate once you have 1) executed an installation agreement with an installer and 2) submitted an interconnection application to your utility. 

OER will review customer applications made through the online rebate portal in the order received and issue reservation-of-funds letters to approved applicants that guarantee rebate availability for an initial 365 days; up-to two 180-day extensions available. 

Your application must include the following documents: 

  1. Electric utility bill for the service address from the last 3 months. 
  2. Executed installation agreement with an installer that shows the battery energy storage system you plan to install and its nameplate system continuous power (kW AC) and capacity (kWh AC). Agreement must be dated on or after the program launch date. 
  3. Intended rebate payee (customer or designated installer). If installer designated as payee, need signed authorization from customer.
  4. Customer agreement to participate in demand-response programs when available.
  5. Signed agreement to comply with program terms. 
  6. Income-Eligible customers: Document proving participation in State or Federal program, dated within last 12 months.

Step 2: Install your System and Submit your Completion Package 

After your system is installed, submit the following documents so OER can verify your project and issue payment. 

  1. Final invoice or signed financing or leasing agreement listing the battery energy storage system model, nameplate power (kW AC) and capacity (kWh AC), and installation address. If installer is payee, document must show discount equal to full rebate value. 
  2. Utility Authorization to Interconnect (ATI) that lists the total storage kW AC. 
  3. Certificate of Completion from local permitting authority. 
  4. Installer Attestation including documentation of system total kWh, electrical one-line diagram, serial numbers, and photos. 
  5. Signed customer agreement to participate in demand-response programs when available OR proof of program enrollment. 
  6. W-9 of applicant (customer). 
  7. Customers that have designated installer as rebate recipient: W-9 of installer.