8/13/2026
1 RiversideCA.gov1
RiversideCA.gov
ENERGY STORAGE REBATE PROGRAMCity CouncilAugust 25, 2026Riverside Public Utilities RiversideCA.gov2
1. Required by state law to establish energy efficiency goals and administer energy efficiency programsfunded through the state-mandated Public Benefits Charge. 2. Assembly Bill (AB) 1890 (Brulte, 1996) required that 2.85% of electric revenue be utilized to fund public benefits programming in at least one of four areas: demand side management (energy efficiency), renewable energy, low-income assistance, or research, development, and demonstration.a. In January 1998, RPU began collecting the State mandated Public Benefits Energy Surcharge on customer utility bills. 3. SB 350 (De Leon, 2015) establishes annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas by January 1, 2030. The bill requires local POU’s to establish annual targets for energy efficiency savings and demand reduction consistent with this goal. BACKGROUND 8/13/2026
2 RiversideCA.gov3
1. Public Benefits Fund Community Working Group a. Requested to be formed by Mayor Lock Dawsonb. Proposed a Spending Plan for up to $34 million in Public Benefit Charge Funds2. Approved by Board and City Council in April and June 2026, respectivelyBACKGROUNDFundingTimelineProgram$5,000,0005 yearsResidential Energy Storage Rebate Program$12,000,0006 yearsCommunity and Emergency Centers Solar PV, Battery Storage, and Energy Efficiency Rebate Program$5,000,0003 yearsResiliency at the UOC/EOC - Solar and Battery Rebate Program$9,000,0005 yearsResidential Battery Energy Storage or Solar with Battery Energy Storage Pilot Program (demand response)$2,000,0002 yearsEnergy Savings Assistance Program and Mobile Home and Multifamily Program$1,000,0004 yearsRiverside Universities Research Grant Program$34,000,0002-6 yearsTotal RiversideCA.gov4
DISCUSSION1. Proposal: New residential rebate for energy storage systems2. Goals 1. Maximizes benefit of existing programs – Air Conditioning Rebate, Heat Pump Rebate, Electrify Riverside Program, and Self-Generation Rate2. Provide a program that allows customers to store renewable generation from the middle of the day for use during peak hours or during a power outage3. Ensure that the rebate is meaningful for customers yet represents a cost-effective and fair use of Public Benefit Funds3. Process for Program Development1. Researched available technology2. Compared other utility programs3. Analyzed avoided cost of load shifting4. Designed the program 8/13/2026
3 RiversideCA.gov5
METHODOLOGY COMPONENTS1. Based on avoided cost of energy for solar PV resources and CPUC 2024 Distributed Energy Resources Avoided Cost Calculator2. Utility level avoided cost components include avoided local energy costs, avoided system capacity costs, avoided GHG carbon credit, and avoided distribution system lossesAvoided Cost of Load Shifting ValueAvoided Distribution Infrastructure Costs + Avoided System Capacity Costs + Avoided GHG Carbon Credit + Avoided Distribution System Losses = Loss Adjusted Annual $ ValuePotential Rebate AmountLoss Adjusted Annual $ Value x 10 years – Battery Degradation = approximately $465 per kWh RiversideCA.gov6
AVOIDED COST OF LOAD SHIFTING1. Analysis determined an avoided cost of almost $465/kWha. Utility level avoided generation costs evaluated buying additional electricity during load peaks throughout the yearb. Distribution level analysis evaluated the avoided costs of upgrading circuits to accommodate additional peak loads2. Proposed rebate rounds up to $500/kWha. Assume a 13.5 kWh capacity battery with an average system cost of $14,000 (~battery pricing varies depending on brand and size)b. Total rebate of $6,750 for a traditional 13.5 kWh battery storage system covers almost 50% of the total system cost 8/13/2026
4 RiversideCA.gov7
OTHER UTILITY PROGRAMS
RequirementsSizeTechnologyIncentiveProgram NameUtilityMust be on a TOU rate, part of existing solar system, and sign up for DR programMinimum size of 5 kWh Eligible energy storage unit must meet the size minimum requirementUp to $3,000 per householdResidential Energy Storage Pilot ProgramAnaheim Public UtilitiesMust have existing solar system or install solar with battery storage Minimum size of 3 kWhApproved list of equipment brandsUp to $2,700 per household and extra $2,000 for low-incomeBattery Storage RebateSilicon Valley PowerMust be on a TOU rate and sign up for DR programNo minimum, based on the approved list of eligible brandsApproved list of equipment brandsEnrollment incentive varies by brand and size with maximum up to $10,000 per householdMy Energy Optimizer Partner+ Incentive (aka Battery Storage Incentive Program)Sacramento Municipal Utility DistrictMust be sold and installed by approved contractor and be on a TOU rateMinimum size of 6 kWhApproved list of equipment brands$300/kWh capacity up to $6,000 maximum incentiveResidential Battery StorageFort Collins Utilities(Colorado)Must be new solar installation with battery storage, be on a TOU rate, and use approved contractorNo minimum, but limited to maximum size of 13.5 kWhApproved list of equipment brands limited to maximum capacity of 13.5 kWh$400/kWh up to 13.5 kWh size; maximum incentive of $9,000 based on PV system size and battery capacityPowerPair Solar and Battery Installation Pilot ProgramDuke Energy RiversideCA.gov8
PROPOSED ENERGY STORAGE REBATE PROGRAM•Program Budget:$5 million•Residential Rebate Amount:$500/kWh capacity ($850/kWh for low-income)•Maximum Rebate Potential:Up to $10,000 per rebate ($17,000/rebate for low-income) not to exceed total project cost; limited to one rebate per year (if customer has moved from property initial system was installed on and system remained at prior property) •Retroactive:Upon approval, customers starting fiscal year July 1, 2026•Technology:No restrictions on brand or type of energy storage system •Size:No restrictions on kWh capacity of equipment•Eligibility:Customers with existing solar, new solar installs, standalone energy storage system install•Rate:Must be on or switch to applicable time-of-use (TOU) rate 8/13/2026
5 RiversideCA.gov9
BENEFITS1. Utilizes Public Benefits Cash Reserves2. Direct benefit to customers3. Peak Reduction and Peak Shaving4. Combine with other existing rebates5. Demand Side Management combined with anticipated Pilot program6. No restrictions on type of energy storage technology or sizing RiversideCA.gov10
NEXT STEPS1. Marketing and Outreach2. Commercial energy storage rebate programa. Additional analysis and research neededb. Need to update time-of-use ratec. More restrictions due to capacity and impact on grid reliability3. Development of demand response programs to complement energy storage systems4. Tracking and assessment of program / program outcomes 8/13/2026
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That the City Council:1. Approve implementation of a new energy storage rebate program for residential demand side management incentives;2. With at least five affirmative votes, authorize the Chief Financial Officer, or designee, to record a supplemental appropriation in the total amount of $5,000,000 from the Electric Public Benefits Fund, Public Benefits Cash Reserves and appropriate expenditures to the Electric Public Benefits Fund, Energy Storage Rebate Program Account; and3. Authorize the City Manager, or designee, to execute the Energy Storage Rebate Program and take all necessary actions required or advisable to implement, administer, fund, and carry out the City of Riverside’s responsibilities under the Energy Storage Rebate Program, including making minor and non-substantive changes to the program, and to execute future amendments to the Energy Storage Rebate Program incentive amounts under substantially similar terms and conditions. RECOMMENDATIONS