The Board of Public Utilities unanimously recommended a new $5 million residential energy storage rebate program Monday that would offer incentives for homeowners to install battery storage systems to improve grid reliability and customer resiliency.
The recommendation now heads to the City Council for final approval.
The proposed program would be funded through the utility's Public Benefits Cash Reserves and is the first initiative funded under the city's $34 million Public Benefits Fund spending plan.
Under the proposal, residential customers could receive rebates of $500 per kilowatt-hour of battery storage capacity, up to $10,000 per project. Low-income customers who qualify through Riverside Public Utilities' Sharing Households Assist Riverside's Energy (SHARE) program could receive $850 per kilowatt-hour, up to $17,000.
To qualify, customers must participate in an applicable residential time-of-use electric rate. The program would be available to customers installing standalone battery systems as well as those pairing batteries with new or existing rooftop solar systems. The rebate would also apply retroactively to qualifying systems installed on or after July 1, 2026.
Staff calculated that battery storage provides an estimated value of about $465 per kilowatt-hour over a 10-year period, based on avoided energy and infrastructure costs. Officials proposed setting the rebate slightly higher at $500 per kilowatt-hour.
Board members questioned how quickly the $5 million allocation could be exhausted if demand exceeds expectations.
Vice Chair Peter Wohlgemuth asked whether the city could add funding if the program proves popular.
Assistant General Manager Tracy Sato acknowledged that the $5 million allotted for the program may not last five years. She said any future expansion would require shifting money from other programs within the Public Benefits Fund spending plan because all available funding has already been allocated.
"But that's a decision that can be made with plenty of forewarning so that we can make sure successful and beneficial programs are continued to be offered with these public benefit dollars," she said.
Board members noted the $10,000 cap could limit the program to roughly 500 participants. Staff said that rebate amounts could be adjusted over time as battery costs decline, similar to previous solar incentive programs.
Officials said outreach would be conducted in English and Spanish, with additional language assistance available as needed. Staff also plans to work with community organizations and target neighborhoods where low-income households have already received rooftop solar installations.
If approved by the City Council, Riverside Public Utilities expects to begin marketing the program immediately and will monitor participation to guide future adjustments.
Staff is also evaluating separate energy storage rebate programs for commercial and multifamily customers.
