WeVote
Log In

Bill

Bill

SB 5727

Incentivizing grid-connected residential battery energy storage systems.

2025-2026 Regular Session Introduced by Sharon Shewmake and 1 co-sponsor

The bill creates a Washington residential battery incentive program to expand grid-connected storage, prioritizing low- and moderate-income households and enabling TOU rates or uti

By resolution, reintroduced and retained in present status.
0
WeVote Research Nonpartisan
Bill Summary · SB 5727

Summary: Senate Bill 5727 — Incentivizing Grid-Connected Residential Battery Energy Storage Systems

Overview

SB 5727 aims to spur deployment of residential battery energy storage systems (BESS) that are grid-connected and dispatchable by utilities during peak load events or outages. The bill would create a regulated incentive program administered by qualified light and power businesses, overseen by the Washington State University Extension Energy Program (WSU EEP), with accompanying tax credits for providers. It seeks to lower upfront costs, expand storage capacity, and support low- and moderate-income households while aligning with clean energy goals and resilience objectives.

Purpose and Intent

  • Address rising peak electrical loads, wildfire risk, windstorms, and other outages by expanding energy storage capacity.
  • Ensure residential BESS can be dispatched by utilities and used during outages.
  • Reduce the need for capital expenditures on transmission and distribution infrastructure.
  • Promote equitable access to storage investments, including for low- and moderate-income customers.
  • Advance goals of Washington’s Clean Energy Transformation Act through accelerated storage adoption and grid integration.

Key Provisions (highlights)

  • New definitions and framework added to RCW Chapter 82.16 establishing a storage-incentive program.
  • A “qualified light and power business” may offer a battery incentive program to customers, approved by the WSU Extension Energy Program (EEP); the program may include:
    • A battery incentive payment to eligible customers.
    • A plan for how customer batteries will be used, either by:
    • Allowing retail time-of-use (TOU) rates for battery-owning customers by July 1, 2026 (with protections against reducing compensation for exported energy or discharged battery energy due to location in the service territory); or
    • Integrating batteries into a utility-operated virtual power plant (VPP) to manage energy use and grid benefits.
  • Applications: Light and power businesses must submit an application to establish a program to WSU EEP; EEP will approve if the program meets specified requirements (Section 3).
  • Program requirements (Section 3):
    • At least 40% of program benefits must reach low-income households, moderate-income households, low-income service providers, housing authorities, or tribal governments.
    • Income verification for low- and moderate-income applicants; verification can be performed by eligible partners (e.g., service providers, housing authorities, tribal governments).
    • Leases to customers are not authorized.
    • TOU rates or VPP participation must reduce the customer’s current total annual electric expenses.
    • All program expenses and upgrades must be documented.
    • Customer data may not be sold or aggregated beyond program operations.
  • Program administration: Qualified light and power businesses may appoint residential BESS installer partners and establish equipment specifications for their programs.
  • Oversight and audits: If approved, the program may begin; WSU EEP will audit the program at least every two years to verify compliance with the act’s requirements.
  • Department of Commerce role: Must produce nonbinding recommendations to assist light and power businesses in designing VPP arrangements; recommendations to be publicly posted.
  • Expiration: The act includes an expiration date for the program (sunset/end date not specified in the provided text).

Definitions (selected)

  • Distributed energy resource; Low-income; Moderate-income household (defined by area and HUD medians); Qualified light and power business; Qualified light and power business customer; Residential battery energy storage system; Time-of-use rate; Virtual power plant.

Affected Parties

  • Light and power businesses (utilities or similar entities) that operate in Washington and run battery incentive programs.
  • Residential customers, including low- and moderate-income households, who own or participate in BESS incentives.
  • Housing authorities, tribal governments, nonprofit organizations, public entities, and academic institutions involved in program administration or as customers.
  • Washington State University Extension Energy Program (administrative and evaluative oversight).
  • Department of Commerce (policy and guidance development).

Timeline and Process

  • Introduced: February 11, 2025.
  • First reading: February 11, 2025; referred to the Senate Committee on Environment, Energy & Technology.
  • Public hearing: Scheduled for February 14, 2025, at 10:30 AM (per current status).

Potential Impacts

  • Increased adoption of residential BESS, tied to grid services (TOU optimization or VPP participation).
  • Greater equity in access to energy storage benefits, notably for low- and moderate-income households.
  • Enhanced grid resilience during outages and peak events; potential reductions in transmission and distribution capital needs.
  • Increased regulatory and administrative oversight, with biannual program audits and a new governance framework via WSU EEP.

Next Steps

  • Monitor the public hearing outcomes and committee actions.
  • Review any amendments clarifying program specifics (e.g., eligibility thresholds, compensation rates, and sunset provisions).
  • Assess potential fiscal implications and the anticipated scope of tax credits for program providers (Section 5).

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.