Utility program deep dive · Connecticut, Massachusetts and New Hampshire

Eversource residential battery and VPP economics

What Connecticut’s Energy Storage Solutions, Massachusetts’ ConnectedSolutions and ConnectedSolutions+, and New Hampshire’s upfront incentive are worth to households: program pay, a capital stack, paybacks and financing.

VPP Economics has no affiliation with, sponsorship from, or endorsement by any utility, aggregator, platform, or device maker named here.

The short answer

  • In Eversource territory, a home battery earns its keep from grid programs, not from the bill. Connecticut and Massachusetts credit exported solar at or near the retail rate (Eversource, Solar Learning Lab). Most homes pay flat rates, so storing solar for the evening saves little. The value comes from being paid per kW delivered during peak events.
  • Connecticut now pays the most. Since April 1, 2026, Energy Storage Solutions (ESS) pays $300 per kW-year for 10 years, up to $550 for low-income homes, plus a $30 per kWh enrollment incentive (ESS program manual). A battery delivering 4 kW earns about $1,200 a year, a 13-year payback at Connecticut’s average installed price.
  • Massachusetts pays $275 per kW for summer events. ConnectedSolutions pays for 30–60 events a season (Eversource). At Massachusetts’ higher battery prices, that alone takes about 17 years to repay. A ConnectedSolutions+ pilot pays $400 per kW near three congested Boston-area substations (Solar Learning Lab).
  • New Hampshire pays upfront. Eversource pays $230 per kWh, up to $3,000, for three seasons of events (Eversource), then $225 per kW a summer (Eversource).
$300–$550per kW-year, Connecticut ESS
$275per kW, Massachusetts summer
227 MWEversource demand response, July 2, 2026
$15,566average Connecticut battery

What each Eversource program is

Utility VPP, 10-year contract

Connecticut Energy Storage Solutions

Eversource and UI call Active Dispatch events: 30–60 in summer and 1–10 in winter, 1–3 hours each, between noon and 9 p.m. Pay is based on average kW-AC measured by inverter data (ESS program manual). Customers can skip events, but a skipped event counts as 0 kW.

Utility demand response

Massachusetts ConnectedSolutions

$275 per average kW for 30–60 summer events of 2–3 hours, 3–8 p.m. (Eversource). Batteries also qualify for a 0% Mass Save HEAT Loan (Mass Save).

Targeted VPP pilot

ConnectedSolutions+

Opened June 25, 2026. It pays $400 per kW near the Alewife, Hyde Park and Dewar substations, with 40–60 events from 2 to 10 p.m. Southeastern Massachusetts pays $275 plus $100 in shoulder months (Solar Learning Lab).

Upfront plus demand response

New Hampshire Clean Energy Fund

$230 per kWh up to $3,000, paid after three summers of enrollment, with no annual pay during those years (Eversource). ConnectedSolutions then pays $225 per kW (Eversource).

Solar compensation

Netting and net metering

Connecticut’s netting tariff credits exports at the retail rate for 20 years (Eversource). Massachusetts systems of 25 kW or less net meter at close to retail (Solar Learning Lab).

Price signal

Few time-varying rates

Connecticut’s optional Rate 7 prices noon to 8 p.m. on weekdays as on-peak (Eversource). Massachusetts’ only residential time-of-use rate is closed, and default TOU is still being designed (DOER).

Program pay for one battery

Annual performance pay by state and tier

One home battery delivering an average of 4 kW per event. Gross program pay, before any manufacturer share.

Swipe to see the full chart →

$0$500$1,000$1,500$2,000$2,500Connecticut, low-incomeESS, $550 per kW-year$2,200Connecticut, underservedESS, $450 per kW-year$1,800Massachusetts, ConnectedSolutions+pilot substations, $400 per kW$1,600Connecticut, standardESS, $300 per kW-year$1,200Massachusetts, ConnectedSolutions$275 per kW, summer$1,100New Hampshire, ConnectedSolutions$225 per kW, summer$900Massachusetts, via Teslaowner keeps 80% of $275$880Connecticut ESSMassachusettsNew Hampshire
Connecticut rates from the ESS program manual; Massachusetts from Eversource; ConnectedSolutions+ from Solar Learning Lab; New Hampshire from Eversource. Tesla keeps 20% of Massachusetts pay (Tesla). The 4 kW average is our assumption; Eversource uses 5 kW as a typical example.

Why Connecticut outpays Massachusetts. Connecticut pays for both summer and winter events, split 89% and 11%, and locks the rate for 10 years (ESS program manual). Massachusetts pays only for summer. In 2026, PURA replaced Connecticut’s upfront rebate with performance pay. After four years, the old design had approved only about 15 MW of home batteries, against more than 140 MW of business projects (Connecticut Green Bank).

Why the kW matters more than the kWh. Pay is based on the average power a battery delivers over each event, not its size. A 13.5 kWh battery holding a 20% reserve can sustain about 3.6 kW for three hours or 5.4 kW for two. More storage, or two batteries, raises the kW a household can deliver across longer events.

The capital stack

Ten-year capital stack by state and tier

Upfront incentives plus 10 years of program pay, as a share of installed cost. Past the dashed line, the package more than covers its cost.

Swipe to see the full chart →

0%50%100%150%200%Connecticut, low-incomeESS, 10 years144% · $22,400 vs $15,570Connecticut, underservedESS, 10 years118% · $18,400 vs $15,570Connecticut, grid edgestandard pay + $130 per kWh88% · $13,760 vs $15,570Massachusetts, ConnectedSolutions+if the pilot ran 10 years88% · $16,000 vs $18,250Connecticut, standardESS, 10 years80% · $12,400 vs $15,570New Hampshire$230 per kWh + $225 per kW77% · $12,000 vs $15,650Massachusetts, ConnectedSolutions$275 per kW, 10 summers60% · $11,000 vs $18,250Covers full costUpfront or enrollment incentiveConnecticut ESS payMassachusetts payNew Hampshire pay
Illustrative, undiscounted. Batteries at EnergySage’s state averages: $1,153 per kWh in Connecticut and $1,352 in Massachusetts, with the $1,159 national average for New Hampshire (EnergySage). No bill savings counted. No federal credit for homeowner-owned systems after 2025 (Solar Cost Data). Massachusetts pay assumed to continue at today’s rates for 10 summers.

Income-qualified and underserved Connecticut homes clear the 10-year line on program pay alone. A standard Connecticut home recovers about 80% of the battery’s cost in 10 years, and a Massachusetts home about 60%. In both, backup power during outages has to justify the rest. Connecticut’s grid-edge adder, $130 per kWh on the most outage-prone circuits, recognizes that (Connecticut Green Bank).

Simple payback by state and tier

Years to repay the installed cost, net of upfront incentives, from program pay alone.

Swipe to see the full chart →

0 yr5 yr10 yr15 yr20 yrConnecticut, low-income$15,566, $550 per kW6.9 yrConnecticut, underserved$15,566, $450 per kW8.4 yrMassachusetts, ConnectedSolutions+$18,252, $400 per kW11.4 yrConnecticut, grid edge$15,566, $300 per kW11.5 yrConnecticut, standard$15,566, $300 per kW12.6 yrNew Hampshire$15,646, $225 per kW14.1 yrMassachusetts, ConnectedSolutions$18,252, $275 per kW16.6 yr
Same assumptions as the capital stack. Paybacks beyond a 10-year battery warranty mean program pay alone does not justify the purchase.

Assets and combinations

+
Battery + utility events

The core case

In Connecticut, the ESS contract runs 10 years at a fixed rate. In Massachusetts, ConnectedSolutions pays every summer, and Tesla locks its rate for five years (Tesla).

+
Solar + battery

Solar recharges, events pay

Because exports earn about retail, the battery adds little bill value. Solar mainly refills the battery after events.

+
Two batteries

More kW per event

Pay scales with average kW, so a second battery can roughly double program pay, though usually at close to double the cost.

Thermostat

The low-cost entry

Mass Save pays $50 at sign-up ($100 if income-eligible) plus $20 a summer (Mass Save). Thermostats delivered 82 MW in Eversource’s July 2 event (Eversource).

EV

Managed charging

Massachusetts pays $50 plus $10 a month for charging outside 1–9 p.m. (Eversource). Connecticut pays $10 or $25 a month (Connecticut EV program). A vehicle-to-grid test is under way (Business Wire).

Heat pump

A winter rate, not a VPP

Massachusetts heat pump homes can get a lower winter rate (Mass.gov). Connecticut’s winter ESS events reflect growing winter peaks (Connecticut Green Bank).

Behaviors each program needs

Stay in the events

Skipped events count as zero

Both states average performance across every event. Opting out of a few hot afternoons lowers the season’s pay.

Charge before 3 p.m.

Be full when events start

Events start as early as noon in Connecticut and 3 p.m. in Massachusetts. A battery that is half empty delivers fewer kW.

Backup reserve

Storms pause events

Connecticut cancels events before forecast major storms to preserve backup (ESS program manual); Massachusetts does the same in extreme weather (Eversource).

Financing: buy, borrow or lease

Three ways to pay for one battery

One 13.5 kWh battery at a standard Connecticut home in Energy Storage Solutions. Money in and out of the household, then cumulative cash over 10 years.

Swipe to see the full chart →

OWN IT OUTRIGHTCash−$15,566 to the installerday one+$405 enrollment incentive$30 per kWh+$1,200 a yearESS performance pay=No bill savingsexports already earn retail=Household owns the batteryand its backup value10-year net cash−$3,161Lowest total cost$BORROW THE NET COSTLoan=$0 down; incentive pays principalborrows $15,161−$184 a month for 10 years8% interest+$1,200 a yearESS performance pay=No bill savingsexports already earn retail−$6,900 of interestover the loan term10-year net cash−$10,073Highest total costTHIRD-PARTY OWNERLease=$0 downowner buys the battery−About $127 a month for 10 yearsillustrative lease price=Owner keeps $4,670 credit30% commercial §48E=Owner keeps the $405 incentivehousehold keeps program pay=No bill savingsexports already earn retail10-year net cash−$3,274Credit lowers the priceCumulative cash to the household, years 0–10−$20,000−$16,000−$12,000−$8,000−$4,000$0yr 0yr 2yr 4yr 6yr 8yr 10Cashowns the batteryLeaseowner keeps the batteryLoanowns the batteryCash pays $15,161 on day one, after the incentive$6,900 of loan interest
Illustrative. Battery at $1,153 per kWh (EnergySage). Loan at 8% over 10 years. Lease price assumes the owner claims the 30% federal credit (Solar.com) and recovers the rest at 8% over 10 years; the household keeps ESS pay, which real contracts may not allow. Excludes backup value, degradation and taxes.
Cash

The 10-year contract repays most of it

A standard home pays $15,161 after the enrollment incentive and earns about $1,200 a year back.

Loan

Payments exceed pay

At 8% over 10 years, payments are about $184 a month against about $100 a month of ESS pay.

Massachusetts HEAT Loan

0% for up to seven years

Batteries enrolled in ConnectedSolutions qualify for up to $25,000 at 0% over up to seven years (Mass Save). On $18,252, that is about $217 a month against about $92 a month of program pay.

Lease or third-party ownership

Who keeps the program pay

Third-party owners can claim the 30% commercial credit (Solar.com). Some manufacturers keep part of the incentive (ESS), so the contract decides who earns the performance pay.

What ifs

Massachusetts TOU

A second revenue stream

If default time-of-use rates arrive, a battery could add bill savings on non-event days. Utilities say they need about 12 months after approval (DOER).

ConnectedSolutions+ spreads

Location-based pay

At $400 per kW, payback drops to about 11 years. It delivered about 2 MW on July 2 (Eversource); wider rollout has not been announced.

Connecticut budget

Tranches can fill

ESS targets 580 MW of storage by 2030 (Connecticut Green Bank). Rates apply at the time of application.

Battery prices

The biggest lever

At $900 per kWh, a standard Connecticut payback falls to about 10 years.

Higher kW

Bigger inverters, two-hour events

At 5 kW, Eversource’s example, a standard Connecticut home earns $1,500 a year (Eversource).

Winter peaks

More winter events

If New England becomes winter-peaking as heat pumps spread, winter pay could rise above 11% of the rate.

Related: how ConnectedSolutions grew into a region-wide VPP in our ConnectedSolutions case study, the capacity event money trail, and the Eversource C&I deep dive.

Method and caveats

An independent, hypothetical analysis for homeowners, renters, program managers, installers and other readers in Eversource’s Connecticut, Massachusetts and New Hampshire service areas. Terms checked October 27, 2026.

Assumptions: one 13.5 kWh battery delivering an average of 4 kW per event; every event attended; state-average installed prices; no bill savings; Massachusetts and New Hampshire rates held for 10 years. Connecticut standard, underserved and low-income tiers depend on eligibility at application.

Figures are gross program payments before manufacturer shares, financing, degradation and taxes. Gross payments are not net profit. United Illuminating also administers ESS in its area.

VPP Economics has no affiliation with, sponsorship from, or endorsement by Eversource, the Connecticut Green Bank, Mass Save, Tesla or any company named here.

Keep going