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 approved by the Washington State University extension energy program. These programs will provide financial incentives to residential customers, particularly targeting low-income and moderate-income households, to encourage the installation of battery storage systems. The bill outlines specific definitions, eligibility criteria, and requirements for these programs, including the necessity for time-of-use rates and the integration of customer batteries into utility-operated virtual power plants.

Additionally, the bill introduces tax credits for light and power businesses that participate in these incentive programs, allowing them to claim credits for incentive payments made to customers and associated expenses. The incentive payments are set to be available from July 1, 2026, to June 30, 2036, with a total cap of $60 million statewide. The legislation also includes provisions for performance evaluation, requiring the joint legislative audit and review committee to assess the effectiveness of the tax preference and the overall impact on battery energy storage installation and job growth in the clean energy sector.