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 need for time-of-use rates and virtual power plant integration to optimize energy management.

Additionally, the bill introduces tax credits for light and power businesses that participate in these incentive programs, allowing them to recover costs associated with incentive payments and program upgrades. The tax credits are designed to promote the installation of residential battery energy storage systems and are available from July 1, 2026, to June 30, 2036, with a total cap on the amount of credits that can be claimed. The legislation also includes provisions for performance evaluation to ensure that the intended outcomes, such as increased energy storage capacity and job growth in the clean energy sector, are achieved.