Comparison of energy storage policies across the country

In 2025, differences in strategic focus are evident: China emphasizes large-scale infrastructure and ancillary services, the US prioritizes market incentives and tax credits, while the EU focuses on sustainability, grid flexibility, and cross-border electricity trade.
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DECEMBER 2022 Energy Storage Benefit-Cost Analysis

About this Report This report was prepared by the Applied Economics Clinic on behalf of the Clean Energy States Alliance. The purpose of this report is to help states in conducting benefit

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The report then evaluates policies in Maryland and across the country to provide a wide range of options that could be enacted to increase the use of energy storage in Maryland in the short term.

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To help identify how current BTM storage state policies vary, this research developed a first-of-its-kind BTM storage policy stack that included 11 parent policies and 31 child policies across the

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About Comparison of energy storage policies across the country

About Comparison of energy storage policies across the country

In 2025, differences in strategic focus are evident: China emphasizes large-scale infrastructure and ancillary services, the US prioritizes market incentives and tax credits, while the EU focuses on sustainability, grid flexibility, and cross-border electricity trade.

In 2025, differences in strategic focus are evident: China emphasizes large-scale infrastructure and ancillary services, the US prioritizes market incentives and tax credits, while the EU focuses on sustainability, grid flexibility, and cross-border electricity trade.

Governments in China, the US, and the EU have introduced policy frameworks that support the deployment of grid-scale and commercial battery energy storage systems (BESS). These policies are designed to address peak demand, integrate renewables, enhance grid stability, and create market.

Following our analysis of energy storage policies in Germany and China, we will analyze and summarize US energy storage policies. Federal government measures to drive energy storage development. In recent years, the federal government took different approaches to promote energy storage development.

Thus, it is unclear which BTM storage policies are adopted across the country, what should comprise a complete storage policy framework or stack, or how states policies compare with that stack. This report addresses this gap in the literature by developing a state policy stack for BTM battery.

The U.S. energy storage market experienced a record-breaking third quarter in 2023, adding a substantial 2,354 megawatts (MW) or 7,322 megawatt-hours (MWh) to the overall grid capacity. Projections indicate that between 2023 and 2027, the market could install around 63 gigawatts (GW) of storage.

A policy explainer that explores how energy storage policies play a pivotal role in facilitating the transition to clean energy, with insights into effective policy frameworks for maximizing the integration of renewable resources into grid operations. A toolkit that offers comprehensive solutions.

Different countries have developed varied regulatory frameworks to support energy storage, reflecting their unique market structures, policy priorities, and energy transition goals. Here is a comparative overview of how some major regions approach the regulation of energy storage: The U.S. has.

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6 FAQs about [Comparison of energy storage policies across the country]

What are the different types of energy storage policy?

Approximately 16 states have adopted some form of energy storage policy, which broadly fall into the following categories: procurement targets, regulatory adaption, demonstration programs, financial incentives, and consumer protections. Below we give an overview of each of these energy storage policy categories.

What is a storage policy?

All of the states with a storage policy in place have a renewable portfolio standard or a nonbinding renewable energy goal. Regulatory changes can broaden competitive access to storage such as by updating resource planning requirements or permitting storage through rate proceedings.

What is the Maryland energy storage program?

The new law requires the Maryland Public Service Commission to establish the Maryland Energy Storage Program by July 1, 2025 and provides for incentives for the development of energy storage. Procurement targets are beneficial in that they provide supportive signals for investors and reduce regulatory uncertainty.

How much energy storage will Maine have by 2021?

Maine also set its goal in 2021 to achieve 400 MW of installed storage capacity by 2030, with an interim target of 300 MW by 2025. New York originally set a goal to procure 3 GW of energy storage by 2030, but New York Governor Kathy Hochul most recently announced plans to double that goal to reach 6 GW by 2030.

What is Virginia's energy storage goal?

Virginia’s target was enacted by law in 2020, which set a 3,100 MW energy storage goal by 2035. A law enacted in 2021 directed the Illinois Commerce Commission to establish storage procurement targets for all utilities serving more than 200,000 customers to achieve by 2032.

Can storage be a non-wires alternative?

Storage can play a significant role in achieving these goals by serving as a “non-wires alternative” that can provide added reliability and grid services as renewable resources such as wind and solar replace fossil fuel baseload resources.

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