1. The Commission shall adopt regulations to establish as part of the Solar Program a program for the payment of incentives for the installation of energy storage systems that have a nameplate capacity of at least 100 kilowatts but not more than 1,000 kilowatts. The regulations must include, without limitation, regulations that:

(a) Establish the type and level of incentives available to a person who installs an energy storage system that has a nameplate capacity of at least 100 kilowatts but not more than 1,000 kilowatts. The Commission shall establish a level of incentives that, to the extent possible, ensures that the benefits of the energy storage system exceed the costs of the energy storage system to a customer of a utility.

(b) Require that each energy storage system for which an incentive is awarded pursuant to this section provides a minimum level of benefit to customers of the utility, including, without limitation:

(1) Reducing peak demand for electricity;

(2) Avoiding or deferring investment by the utility in assets for the generation, transmission or distribution of electricity; or

(3) Improving the reliability of the operation of the transmission or distribution grid.

(c) Establish a collaborative process for a utility to select persons to participate in the program and receive an incentive pursuant to this section.

2. To be eligible to receive an incentive pursuant to this section, a person must:

(a) Be a property owner, a participant or a person who has installed on the property of the person a solar energy system;

(b) Install an energy storage system that has a nameplate capacity of at least 100 kilowatts but not more than 1,000 kilowatts; and

(c) Be selected by the utility for inclusion in the Solar Program and the award of an incentive pursuant to this section.

3. In collaboration with interested parties, a utility shall identify customers of the utility who have the potential to satisfy the requirements for an incentive pursuant to this section and locations on the utility’s system at which energy storage systems that would qualify for an incentive pursuant to this section have the potential to be installed.

4. The Commission shall not authorize the payment of an incentive pursuant to this section as part of the Solar Program if the payment of the incentive would cause the total amount of incentives paid by all utilities pursuant to this section to exceed $5,000,000.

(Added to NRS by 2017, 1266)