The proposed bill aims to incentivize the adoption of grid-connected residential battery energy storage systems in Washington State. It establishes a framework for qualified light and power businesses to create battery incentive programs, which must be approved by the Washington State University extension energy program. The bill outlines definitions for key terms, such as "low-income," "moderate-income household," and "residential battery energy storage system," and mandates that at least 40% of the benefits from these programs must support low-income and moderate-income households. The incentive program will allow customers to receive financial support for installing battery systems, with specific payment amounts based on income levels and capped storage capacities.

Additionally, the bill introduces tax credits for light and power businesses that provide these incentives, allowing them to claim credits for incentive payments and associated expenses. The credits are designed to encourage utilities to support customers investing in battery energy storage, ultimately aiming to reduce installation costs and create jobs in the clean energy sector. The program will be operational from July 1, 2026, to June 30, 2036, with a performance review scheduled for 2030 to assess its effectiveness in achieving the desired outcomes, including the installation of 50 megawatt-hours of battery storage and growth in related employment.