Bill > SB6008

This bill establishes a residential battery incentive grant program to encourage the adoption of grid-connected residential battery energy storage systems, which are stationary battery systems no smaller than 5 kWh that can store and discharge energy to help manage electricity demand. The program aims to increase energy storage capacity across the state to address issues like power outages caused by peak electrical loads, wildfires, and storms, and to reduce the cost of electricity infrastructure. The Department of Commerce will award grants to electric utilities that implement qualified incentive programs. These programs must provide upfront incentives to eligible customers, incorporate the battery systems into flexible demand programs (which encourage consumers to shift or modulate their electricity use, often through incentives or time-of-use rates), and financially encourage customers to manage their electricity use in ways that benefit the electric grid. A significant portion of the funding, at least 40 percent, must be reserved for low-income households, moderate-income households (defined as those with incomes between 80% and 115% of the median family income for their area), or tribal households. The bill also specifies that third parties cannot own these incentivized battery systems, and it outlines the application process for utilities, including requirements for promoting low-income participation and verifying income. Incentives will be available from July 1, 2026, to June 30, 2036, with higher amounts for low- and moderate-income customers (up to $13,800) and lower amounts for others (up to $8,100), though these amounts can be adjusted. Utilities must report on program participation and outcomes quarterly. Finally, this bill exempts grants received by electric utilities under this program from certain business and occupation taxes.