Hidden Image
Back to Developers and Contractors

Residential and Retail Storage Incentives

 

NYSERDA offers incentives for grid-connected residential and commercial customers to install standalone energy storage or systems paired with a new or existing on-site renewable generation like solar, fuel cells, or combined heat and power.

How It Works

NYSERDA’s Residential and Retail Energy Storage Incentives are structured as fixed-rate incentives based on the storage systems capacity, measured in kilowatt hours (kWh). These incentives are available on a first-come, first-served basis. Incentives for all residential and retail storage projects are provided through a network of participating contractors approved under the Residential and Retail Energy Storage Incentive program who contract directly with the customer.

The program breaks out incentives geographically by sector and region in the Megawatt hour (MWh) Block Dashboards. Incentive details will be available on the Residential Energy Storage Incentive Dashboard and Retail Energy Storage Incentive Dashboard.

Residential Energy Storage Incentives

The Residential Energy Storage Incentives are available for contractors’ installing storage on a new or existing home in New York State. Incentives are available for up to 25 kWh of storage capacity. The Program Manual [PDF] provides a full list of project eligibility and requirements.

Contractors installing residential energy storage in PSEG Long Island are eligible to apply for the Long Island Single-Family Residential Storage Incentive which are governed through the NY-Sun Program Manual [PDF]. Contractors and Builders can apply for this program separately through the NYSERDA Portal Link opens in new window - close new window to return to this page..

Retail Energy Storage Incentives

The Retail Energy Storage Incentives are available for new commercial scale distributed (retail) energy storage projects up to 5 megawatts (MW) that are either located behind a customer’s electric meter or interconnected directly to the distribution network. Projects must provide value to a customer under an investor-owned utility rate, such as offsetting demand charges, participating in a utility demand response program, or receiving compensation under New York State’s value of distributed energy resources (VDER) tariff. The Program Manual [PDF] provides a full list of project eligibility and requirements.

For battery storage systems above five MW of AC power, projects could be eligible for incentives through the Bulk Energy Storage Program.

Additional details on both the Residential and Retail Energy Storage Incentive are available in the program manual [PDF]. 

How to Become an Energy Storage Participating Contractor

To become an energy storage participating contractor, you must submit an online contractor application Link opens in new window - close new window to return to this page.. Contractors will be evaluated based on their experience, their customer references, and performance in this or other New York State or utility programs.

Before you start the online application, use this checklist [PDF] to guide you through the document requirements.

Once NYSERDA approves contractors, they will receive access to submit project applications online. All participating contractors will begin in provisional status until they establish a successful track record of projects under this program.

Download the program manual [PDF] for more information about the program and how to apply.

Participating Contractor Resources

Contractor Application

Contractor Application Checklist

Peer Review Resources

The 2025 NYS Fire Code (FCNYS) requires that all battery energy storage system (BESS) installations exceeding established capacity thresholds are peer reviewed to ensure code compliance for upcoming projects. Local Authorities Having Jurisdiction (AHJs) often lack the resources or expertise to evaluate critical BESS permitting documents which contain technical data that drives important siting requirements. Projects procured under NYSERDA’s retail and bulk energy storage programs are required to go through NYSERDA’s peer review process. The process will be conducted by vetted, qualified experts for applicable BESS installations. This process will assist local AHJs in their review of BESS permit applications and their compliance with existing fire code requirements.

AHJs in New York State still retain the legal authority to review, approve, and permit projects. Code enforcement officials will benefit from accessing and understanding these documents to create smart, critical alignment with the NYSERDA Peer Review Team. Further, AHJs can leverage these resources to develop a deeper understanding of project design details that are relevant to code compliance.

Project Application Forms and Example Documents

Program Manual

Quality Assurance Reference Guides

Our Quality Assurance (QA) program is responsible for inspecting a percentage of all the Energy Storage projects. We have developed the following guidance documents to help you comply with the QA program.

Field Inspection Reference:

NEC Photo Inspection Reference:

Portal Reference Guides:


Statewide Solar for All Resources

This section contains information about Statewide Solar for All (S-SFA), including important program documentation. Distributed solar and energy storage projects can participate in the S-SFA program.

Frequently Asked Questions (FAQs)

Reference the S-SFA FAQs document for answer to frequently asked questions.

Compensation Level Schedule

Distributed solar and energy storage projects participating in Statewide Solar for All will be compensated based on the 2025 rates specified in the Compensation Level Schedules [PDF] document that was filed with the Department of Public Service.

Utility Requirements

Distributed solar and energy storage projects enroll in S-SFA directly with the interconnecting utility. More information, including how to enroll and required program documentation, can be viewed on each utility's website.

Informational Webinar

In October 2024, NY-Sun hosted a webinar to present an overview of the program, including project compensation, program eligibility, and enrollment. Please note that the information presented in the archived webinar was preliminary, and the other documents and links on this page should be referred to for up-to-date program details.

  • S-SFA Webinar Recording Link opens in new window - close new window to return to this page.
  • S-SFA Presentation Slides [PDF]

    • Webinar Presentations

    Energy Storage Program Manual Updates Webinar - April 16, 2026

    Utility Residential Energy Storage Demand Response Programs & NYSERDA Program Requirements - January 22, 2026

    NYSERDA Inclusive Storage Incentives (ISI) Launch: Stakeholder Overview Webinar - December 4, 2025

    6 GW Residential and Retail Energy Storage Programs Overview Webinar - March 11, 2025

    6 GW Energy Storage Order and Disadvantaged Communities Program Design Webinar – September 24, 2024

    Webinar on Retail Energy Storage NYC Block 5 and Funding Reallocation – February 29, 2024

    6 GW Energy Storage Roadmap: Disadvantaged Communities Benefits Stakeholder Webinar – March 16, 2023

    6 GW Energy Storage Roadmap: Residential and Commercial Retail Overview Webinar – March 1, 2023

    Retail Energy Storage Incentive Program – May 3, 2019 Long Island Incentive Overview Webinar – July 11, 2019

    Sign Up For News

    Stay up to date on energy storage programs and policy in New York State, best practices, and more.

    Stay Connected