While some state incentive programs for commercial energy storage may fall short in terms of financial reward to spur the adoption of new capacity, Efficiency Maine has introduced a game-changing initiative. This program provides participants with the potential to save up to $3 million over five years.
What is the Energy Storage System Program?
Efficiency Maine, a quasi-state organization, has launched the Energy Storage System Program, aimed at commercial power customers dedicated to reducing the state’s peak electricity consumption from the ISO New England grid. Participants can earn $1,000 per kilowatt (kW) of eligible capacity with a 5-year contract by curbing energy consumption behind the meter during summer and fall peak periods.
This program is currently tailored for customers eligible for a new electricity rate from Central Maine Power (CMP) designed to minimize multiple utility demand rate peaks annually. For instance, a typical commercial electricity customer with a $50,000 monthly bill could potentially save an impressive $30,000 per month through this program.
Jesse Remillard, a senior program manager at Efficiency Maine, emphasized the growing relevance of energy storage in Maine, particularly in managing peak demand. He highlighted how energy storage not only assists in smoothing transitions but also provides a crucial measure of resiliency and backup power at a facility level.
Read: Commercial Energy Storage Incentive Program Details
How to Qualify
Unlike other state storage incentive programs, which rely on utilities or grid entities to identify specific days for battery usage, the Maine program adopts a different approach. It relies on storage system vendors or analysts to predict peak days based on historical data. This reliance on data allows participants to predict with an impressive 90% accuracy which days to switch to storage.
To qualify for the incentive, participants with a minimum 20 kW system must hit 15 of CMP’s peak days within a three-hour period, typically occurring between June and September. Targeted participant performance is determined by data provided to Efficiency Maine in 15-minute intervals. It’s important to note that compensation is solely for energy demand reduction behind the meter, not for exporting electricity to the grid.
How the Program will Benefit Maine Organizations
In a hypothetical scenario, Remillard suggested that a commercial facility with a 700 kW peak load should install a 500 kW battery bank capable of discharging for three hours, equivalent to a 1,500 kWh storage system. At an estimated cost of $750 per kWh, the total system cost would be approximately $1.1 million. However, with a potential incentive of $500,000 over five years, coupled with a 30% ITC tax credit of $337,500, the net cost of the system would be just $287,500.
To participate in the program, pre-approval of the Energy Storage System (ESS) is mandatory. The system must maintain a minimum 80% efficiency round-trip, and carry a 10-year manufacturer’s warranty along with UL-type certification.
Maine: Leading the Way in Renewables Adoption
This Efficiency Maine storage program represents just one facet of the state’s ambitious energy storage goals. By law, Maine has set capacity targets of 300 MW by the end of 2025 and 400 MW by the end of 2030. These goals are a significant step towards enhancing grid stability and sustainability in the state.
Efficiency Maine’s innovative incentive program is poised to revolutionize the landscape of commercial energy storage. With its unique approach and substantial potential savings, it’s set to play a pivotal role in reshaping Maine’s energy future.
Maine: Leading the Way in Renewables Adoption
Are you looking to integrate renewables and energy storage into your organization’s CapEx stack? EnergyLink’s experienced team can help you evaluate your potential savings and select the best options for your facility’s needs. Contact us today.
