FY26 Residential and Commercial Energy Storage Grant Program

The Maryland Energy Administration (MEA), a state agency responsible for promoting affordable, reliable, and clean energy across Maryland, has launched the Fiscal Year 2026 Residential and Commercial Energy Storage (RCES) Grant Program. This program is a newly created initiative authorized by §9-2012 of the State Government Article, Annotated Code of Maryland, and serves as the successor to the Maryland Energy Storage Income Tax Credit Program, which ended in December 2024. The RCES Grant Program is designed to support the deployment of battery energy storage systems (BESS) by offering financial incentives to both residential and commercial property owners. This initiative seeks to improve grid reliability, enhance statewide energy resilience, and contribute to Maryland’s clean energy transition. The RCES Program is structured as a non-competitive, first-come, first-served grant opportunity. Applicants must follow a two-step process: first, they submit an application to reserve grant funds, which must include a signed battery storage system installation contract. Once MEA issues a Reservation Certificate confirming fund allocation, installation may begin. Within 180 days of receiving the Reservation Certificate, applicants must complete system installation and submit a Completion Certificate along with final required documentation to claim the grant. Grant funding is capped based on system type and installation location. Residential projects are eligible for the lesser of 30 percent of installed costs or $5,000. Commercial projects are eligible for the lesser of 30 percent of installed costs or $150,000. The total program budget for FY26 is $2,000,000, funded by the Strategic Energy Investment Fund (SEIF) through proceeds from the Regional Greenhouse Gas Initiative (RGGI). Partial grants may be issued if demand exceeds available funds, and applicants will be given the choice to accept or reject a reduced award. Eligibility for the program is open to property owners—residential or commercial—who install grid-connected battery energy storage systems, as well as third-party owners who finance or own systems on behalf of a property owner. A third-party owner is defined as an individual or business entity that owns or pays for the system’s installation. Commercial applicants and third-party owners must also provide evidence of good standing with the Maryland Department of Assessments and Taxation. Applicants must apply online through the MyMEA portal and submit specific documentation in both steps. The Step 1 application requires complete identity and system information and a signed installation agreement. If the system is third-party owned and installed on property the applicant does not own, a notarized letter of permission from the property owner must be submitted. The Step 2 application requires proof of system completion, a utility interconnection agreement and permission to operate, proof of system payment or financing, and a signed IRS Form W9 for commercial applicants. Applications are being accepted now and will remain open until 3:00 PM ET on June 5, 2026, or until all available funds are exhausted. Program documents, including the Funding Opportunity Announcement and Third-Party Authorization Form, are available through the Maryland Energy Administration’s website. Additional inquiries can be directed to the program contact, Emma Stoney, at emma.stoney@maryland.gov or by phone at 410-382-1605.

The installation must not begin before MEA issues the Reservation Certificate. Ensure names on the application match ID exactly. If property is not owned, notarized approval is mandatory.