Energy Storage Rebates
The Rhode Island Office of Energy Resources (OER) offers rebates for the purchase and installation of behind-the-meter battery energy storage systems up to 250 kW at Rhode Island homes and businesses. The Energy Storage Rebate (ESR) Program is funded by proceeds from the Regional Greenhouse Gas Initiative (RGGI) and is administered on a first-come, first-reserved basis.
Rebate Amounts
The program is structured in two tiers based on continuous AC power rating:
Tier 1 — Residential & Small Commercial (≤25 kW AC)
| Base Incentive | Income-Eligible Incentive | |
|---|---|---|
| Rate | $250 per kWh nameplate battery capacity | $500 per kWh nameplate battery capacity |
| Maximum | $8,000 per project | $16,000 per project |
| Max rebate reached at | 32 kWh | 32 kWh |
Tier 2 — Commercial & Industrial (25–250 kW AC)
| Base Incentive | |
|---|---|
| Rate | $175 per kWh AC nameplate battery capacity |
| Maximum | $45,000 per project |
| Max rebate reached at | 260 kWh |
Available Funding: $2,000,000 total ($1,300,000 for Tier 1; $700,000 for Tier 2). Remaining program budget is posted publicly and updated every two weeks.
A homeowner installing a 13.5 kWh battery system (such as a Tesla Powerwall) would receive a base rebate of $3,375 ($250 × 13.5 kWh). An income-eligible homeowner installing the same system would receive $6,750 ($500 × 13.5 kWh).
Property owners at the installation address with an active electric account with Rhode Island Energy, Clear River Electric and Water (CREW) District, or Block Island Utility District.
- Systems must be new installations of behind-the-meter, grid-connected battery energy storage systems.
- Tier 1 systems must be listed on Rhode Island Energy's ConnectedSolutions supported products list
- Tier 2 systems not on the ConnectedSolutions list must meet UL 9540 (with UL 9540A testing), UL 1741, and IEEE 1547 certification requirements.
- The executed installation agreement must be dated on or after the program launch date.
- Demand-response participation is required when programs are available from your electric utility.
To qualify for the enhanced Tier 1 incentive ($500/kWh, up to $16,000), applicants must provide proof of participation in one of the following programs, dated within the last 12 months:
- Rhode Island Energy A-60 Electric Low-Income Discount Rate
- 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
Self-attestation of income is not accepted.
- Used or refurbished equipment
- Off-grid (non-interconnected) systems
- Projects located outside Rhode Island or not tied to a qualifying utility account
- Projects lacking required permits, inspections, or utility interconnection approval
- Projects with an interconnection application submitted prior to the program launch date
- Projects receiving the Rhode Island Renewable Energy Fund (REF) storage adder for the same equipment (these incentives are mutually exclusive)
The rebate process has two steps:
Step 1: Reserve Your Rebate
Submit an application through the online ESR Program portal. Your application must include:
1. Your name, contact information, mailing address, and service address.
2. Electric utility bill for the service address from the last 3 months.
3. Executed installation agreement with an installer showing the battery make/model, nameplate capacity (kWh), and continuous power (kW AC). The agreement must be dated on or after the program launch date.
4. Intended rebate payee (you or your installer).
5. Acknowledgment of program terms.
6. Income-eligible applicants: Proof of participation in a qualifying program (dated within the last 12 months).
7. Tier 2 applicants: Copy of the submitted interconnection application.
OER reviews applications in the order received and issues reservation-of-funds letters to approved applicants. Reservations guarantee rebate availability for 365 days, with up to two 180-day extensions available for documented permitting or interconnection delays.
If you do not have internet access, contact OER at (401) 574-9117.
Step 2: Complete Your Installation and Submit Your Completion Package
After your system is installed, submit the following to OER:
1. Final invoice or signed financing/leasing agreement showing battery model, nameplate kWh, and installation address. (If installer is the payee, the document must show a discount equal to the full rebate amount.)
2. Utility Authorization to Interconnect (ATI).
3. Certificate of Completion from local permitting authority.
4. Installer Attestation including electrical one-line diagram, serial numbers, and installation photographs.
5. Proof of demand-response enrollment (signed CSP contract or Rhode Island Energy Direct Participation confirmation), or a signed commitment to enroll when programs become available.
6. Customer W-9 (required regardless of rebate payee).
Once approved, OER will issue the rebate payment within 4–6 weeks via State payment processes (check or ACH).
Eligible low-income customers can access **0% financing** for battery storage systems through Rhode Island Energy's Heat Loan program.
Eligibility: Available to customers on the A-60 rate (Rhode Island Energy's low-income discount rate) as of June 1, 2024. The financing covers equipment and labor costs associated with installing a battery storage system.
Steps to Apply:
1. Call 1-888-633-7947 to request the 0% Financing Enrollment Form.
2. Get contractor proposals for your battery storage installation.
3. Submit the completed enrollment form and proposal to the Financing Administrator for approval.
4. Receive a 0% Financing Authorization Form and apply for a loan with a Participating Lender.
5. Once approved, proceed with the contracted work and installation.
6. Once installed, enroll in ConnectedSolutions.
7. Provide proof of ConnectedSolutions enrollment to the Financing Administrator.
8. Finalize the loan and arrange payment to your contractor.
*Note: The 0% Heat Loan financing can be used in combination with the ESR Program rebate, further reducing your out-of-pocket costs.*
Battery storage systems offer a range of benefits for homeowners and businesses:
Save money on electricity. Batteries store cheap energy and discharge during expensive peak hours, lowering your electric bill. Through ConnectedSolutions, you can also earn annual performance-based incentives for allowing your battery to support the grid during high-demand events.
Keep the lights on during outages. A battery can power your most important appliances and systems — refrigerators, lights, medical devices, internet equipment, sump pumps — for hours or even days during a power outage. Paired with solar panels, a battery can recharge itself during extended outages.
Reduce your carbon footprint. By using stored clean energy instead of drawing from gas-fired peaker plants during high-demand periods, a battery system directly reduces the greenhouse gas emissions associated with your electricity use.
Increase the value of your solar investment. Without storage, excess solar electricity is exported to the grid at a credits rate that may not match what you pay for electricity later. A battery lets you store that excess energy and use it when you need it, maximizing the financial return on your solar panels.
Support Rhode Island's clean energy goals. Every battery installed behind the meter contributes to the state's 90 MW energy storage target and helps reduce the peak demand that drives the highest costs and emissions on our electric grid.