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Energy storage incentive

Photo of a man opening a panel on an energy storage system

Increased reliability while reducing demand on the grid

Energy storage systems (ESS) provide reliability and resiliency for businesses and the grid alike while helping to reduce GHG emissions as an alternative to diesel backup generation. Storing energy can help manage peak demand charges, reduce peak loads on the grid and provide electricity during outages. 

The offer

We're offering incentives to our business customers to support the acquisition, installation, and operation of ESS. Once installed, BC Hydro will have the ability to dispatch the ESS automatically in response to changing conditions on the grid. These dispatch signals trigger the battery to discharge, powering the facility it's attached to and reducing demand on the grid. The battery will then recharge later in the day or at night.

How it works

The incentive provided is based on the amount of battery capacity the customer nominates to be available for demand flexibility or demand response events.  The incentive is calculated as the lesser of:

  • $10,000 X kW nominated
  • $10,000 X kWh/4 nominated
  • 80% of eligible project costs.


To be eligible for our energy storage incentive (ESI), customers must meet the following criteria:

  • Be on a general service or irrigation rate under the Electric Tariff.
  • Plan to install a new battery. Batteries that have already been purchased
    or installed are not eligible.
  • Have an operating smart meter
  • Must complete applicable net metering or generator interconnections process. Systems must be non-exporting to the grid.
  • Must install and energize an ESS that meets all the system requirements of the program within 24 months of completing a distribution generator interconnections facility study or the net metering application process.
  • Agree to a 10-year contract to provide demand flexibility services via the ESS to BC Hydro.
  • Provide reliable demand flexibility year-round within the following
    • Maximum duration (hours /event): 4
    • Maximum daily frequency: 2
    • Minimum hours between events: 5
  • Must reliably respond to flexibility dispatch events. Performance is considered reliable when the ESS is charged to provide at least 85% of its nominated capacity for 85% of all demand response events, as measured at the start of the event. Reliability is assessed annually.
  • Must connect to BC Hydro software platform via IEEE 2030.5, SCADA, established API or other method approved by BC Hydro to receive event signals.

How to apply

See our energy storage system (ESS) application process [PDF, 92 KB] for details. You'll also need our incentive application workbook [XLS, 183 KB] to begin the process. 


For more information, see our Customer manual – Energy storage systems [PDF, 227 KB].