The Washington Distributed Energy Storage & Resiliency Act
Strengthening the Grid, Empowering the Consumer
Washington State is facing increasing grid constraints, wildfire risks, and energy demands that require modern solutions. The proposed Distributed Battery Storage Incentive program is an initiative designed to help utilities and customers work together. By lowering the financial barrier to battery ownership, we can deploy distributed energy storage that provides backup power for families while actively stabilizing the utility grid through demand response and peak shaving. Senate Bill 6008, introduced in the 2026 Regular Session, establishes a statewide Residential Battery Incentive Grant Program to help utilities and customers deploy dispatchable energy storage.
By lowering the financial barrier to battery ownership, this program enables the deployment of grid-connected systems that provide essential backup power for families while actively stabilizing the utility grid during peak load events.
Making Battery Storage Affordable
The upfront cost of battery energy storage systems (BESS) remains a significant barrier for many Washingtonians. SB 6008 addresses this by providing one-time incentive payments for stationary, permanently installed battery systems no smaller than 5 kWh.
The program establishes the following maximum incentive amounts:
Low-Income and Moderate-Income Households: Qualified customers may receive up to $13,800 per customer.
Standard Incentive: All other qualified electric utility customers may receive up to $8,100 per customer.
The Rise of Flex Demand
To qualify for these incentives, customers must enroll in a participating utility’s flexible demand program. These programs are designed to manage electricity in ways that reduce system-wide costs, utilizing mechanisms such as:
- Time-of-Use Rates: Billing structures where the price of electricity varies based on the time of day to encourage shifting usage to off-peak hours.
- Virtual Power Plants (VPPs): Aggregations of distributed energy resources coordinated via software to balance loads and provide grid services.
- Demand Charge Signals: Management of consumption based on the highest rate of electricity recorded in a billing period.
Electric utilities with more than 100,000 retail customers in Washington are required to implement these flexible demand programs as early as January 1, 2027.
Eligibility and Participation
Target Date: As currently drafted, if the bill passes this session incentives could become available as early as January 1, 2027.
Customer-Generators: Solar owners and other customer-generators are eligible to fully participate in the program.
Ownership: Systems must be owned by the customer or the utility. Third-party leases are prohibited for systems receiving these incentives, except in specific utility-owned rent-to-own or low-income programs.
Real-World Success: PSE’s Flex Batteries
Virtual Power Plants are already working in Washington. Puget Sound Energy’s current “Flex Batteries” program demonstrates exactly how this technology benefits both the homeowner and the grid.
How it Works: During periods of high energy demand, PSE remotely draws energy from participating residential batteries to stabilize the local grid.
Customer Incentives: In exchange for participation, customers currently receive a one-time enrollment reward (up to $1,000 per battery) plus annual performance payments of up to $500 for discharging energy during these events.
- Safety & Control: The program ensures resiliency by never discharging a battery below 20% capacity, guaranteeing homeowners always have backup power for emergencies.
The proposed Distributed Energy Storage & Resiliency Act builds on this proven model, creating a statewide framework that allows more utilities to offer similar programs while helping customers afford the initial battery installation.
Projected Impact and Investment
With a proposed funding allocation of $10 million per biennium, this program is designed to drive rapid adoption of storage technology. The current proposal allocates 40% of incentive funding specifically to low-income projects, ensuring that vulnerable communities benefit from increased energy resiliency.
- Estimated Biennial Impact: Funding to support approximately 1,531 new residential battery energy storage systems every two years.
- Energy Capacity: A projected addition of over 14.8 MWh of distributed storage capacity per biennium to support the grid.
Support the Future of Energy Independence
Passing the Distributed Battery Storage Incentive bill requires a strong, unified voice in Olympia. WASEIA is dedicated to advocating for policies that expand solar and storage access, create jobs, and build a resilient grid.
We cannot do this work without your support.
- Become a Member: Join our network of solar and storage professionals driving the industry forward.
- Donate: Your contributions directly fund our legislative advocacy and lobbying efforts.
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