A battery storage system stores electricity that is either drawn from the grid or from an attached solar system during the times of the day when there is excess solar power being generated. The stored electricity can then be used at a later time, such as during a power outage. 

Residential battery storage systems are most commonly installed in spaces like the garage, basement, or utility room. Typical home battery systems have capacities between 5-20 kW / 10-30 kWh and can power essential appliances in a home for about 24 hours. The most common type of home battery system is lithium-ion, and it typically has a lifespan of 10-15 years or 6,000 cycles.

One of the most common applications for battery storage in a home is being paired with solar panels to store the excess electricity generated for later use when the solar output is not as high, which increases the total efficiency of the solar system while decreasing energy bills. Another common application for battery storage is for backup power. In the event of a power outage, battery storage can provide electricity to critical systems in your home, such as the refrigerator and lighting. If the battery system is large enough, it can even power your entire home.

Not only can a battery storage system complement a host of clean energy technologies in a home, but it can also provide homeowners with an opportunity to receive compensation for pushing energy back to the grid or by reducing customer demand during peak demand periods, such as on hot summer afternoons when electricity usage is high due to air conditioning. This compensation is provided through ConnectedSolutions, a demand response program that is administered by Mass Save program administrators.

How Does ConnectedSolutions Work?

When energy consumption is highest—typically during the hottest days of the year—the electric grid becomes stressed. This is referred to as ‘peak demand,’ which leads to higher energy bills and worse pollution as utilities are forced to turn to dirtier fossil fuel plants to keep up with the energy demand during that period. To address this, utilities launched ConnectedSolutions—a demand response program to help reduce strain on the electric grid during peak hours by coordinating across thousands of household devices to reduce energy consumption. When the utility calls an event in response to peak demand hours, this is referred to as a ‘peak event.’ The concept allows customers to collectively participate in reducing energy demand on the grid through a “Bring Your Own Device” model, all while earning incentives for their participation.

ConnectedSolutions provides annual incentives to homes with enrolled batteries for allowing your electric utility company to discharge the electricity stored in your battery during periods of peak electricity demand. These events may occur between June and September, generally between 3:00 PM and 8:00 PM, and can last 2 or 3 hours. Program administrators will not call more than 60 events in a summer season. Once enrolled, battery dispatch is managed through the approved battery or inverter platform. Event communications and customer notifications depend on the battery manufacturer’s platform and settings. If a customer does not participate in an event—whether due to opting out, communication issues, or other performance limitations—that event may be recorded as 0 kW performance, which lowers the season-average incentive.

The compensation for enrolling your battery in ConnectedSolutions is $275/kW for your battery’s average contribution during the summer season. You are compensated based on your battery’s average discharge across the entire season, minus the battery manufacturer’s fee (manufacturer fees range from 0 to 20%). For example, if a battery performs differently across 5 events, the season-average performance is calculated using the average of those event results:

Your average season performance would be: (4 kW + 5 kW + 0kW + 4 kW + 3 kW)/5 = 3.2 kW

So the total amount paid through the incentives would be around 3.2 kW x $275/kW = $880.

An average household with a 5 kW battery can expect to earn between $1,200 and $1,375 per season, depending on the number of events called and the level of participation. Incentive payments are made between October and December following the summer season. Customers may select their payment recipient based on the options provided during enrollment.

*Please note that this information is based on the ConnectedSolutions program. Additional incentives are available for customers in select areas through the ConnectedSolutions+ program with varying frequency and duration. You can learn more about the ConnectedSolutions+ program here for Eversource and here for National Grid.

How To Enroll

To participate in ConnectedSolutions, you will need to be an existing customer with either National Grid or Eversource.* Your battery system must be below 50 kW and can be installed either as a stand-alone system or paired with solar panels. To be considered for the full summer incentive opportunity, applications should be submitted by May 31. Enrollment in the program is done through the battery manufacturer, not the utility company, and any communication about when the battery is going to be accessed for discharge events will be sent to you through your battery manufacturer. Eligible battery brands include popular systems such as Tesla, Enphase, SolarEdge, and many more. For a full list of eligible batteries and instructions on enrollment specific to each brand, visit Mass Save’s Battery Storage program page.

Adding battery storage to your home can provide you with reliable backup power, a way to store excess energy from solar, and allow you to earn performance-based incentives through the ConnectedSolutions program—all while helping reduce grid stress during periods of high demand.

*Other Massachusetts electric utilities may also have their own ConnectedSolutions program.

For more information on battery storage and ConnectedSolutions: SolutionsCenter@masssave.com | 1-866-527-SAVE (7283)

Please note: This blog refers specifically to the ConnectedSolutions program offered by Massachusetts utilities Eversource and National Grid. Program eligibility, incentives, and participating utilities vary by state and utility territory. Other utilities in New England, including Rhode Island Energy, may offer ConnectedSolutions programs with different requirements and benefits.