HB 1871 Washington House · 2025-2026 Regular Session

Incentivizing grid-connected residential battery energy storage systems.

HB 1871 creates a state incentive program to help homeowners install grid-connected residential battery storage systems, primarily benefiting low- and moderate-income households. Utilities must establish approved incentive programs requiring at least 40% of benefits to reach these households, with options for time-of-use electricity rates or participation in utility-run virtual power plants. The program mandates income verification for qualifying customers, prohibits leasing, and requires utilities to document costs and protect customer data. Approved programs must be audited biennially by Washington State University Extension. The bill aims to increase grid resilience during outages while supporting clean energy goals.
Bill status in committee 1 of 4 stages cleared
Introduction
Jan 2026
Committee Review
Floor Vote
Governor
Introduced Jan 12, 2026 Last action Jan 12, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

Bill Substitute Bill · 6 edits
MODERATE
This bill was amended to clarify definitions, shift administrative oversight from the Department of Revenue to the Washington State University extension energy program, and tighten requirements for utility incentive programs. The changes ensure that utilities must prioritize low-income households and strictly limit data usage, while also adjusting how tax credits are calculated and reported.
Scope change
The bill's scope remains focused on incentivizing residential battery storage for light and power businesses, but the applicability of certain administrative rules and oversight bodies has shifted from the Department of Revenue to the Washington State University extension energy program.
DEFINITION

Updated the definition of 'residential battery energy storage system' to explicitly require it serve a residential customer and support utility demand management, and refined the 'time-of-use rate' definition to clarify consumer benefits.

REQUIREMENT

Changed the requirement for time-of-use rates to allow customers to be optional customer-generators rather than mandating they own batteries, and clarified that expenses must lower customers' total annual light and power expenses.

Added a new requirement that utilities must have both incentive payments and associated expenses in the same year to claim a tax credit, ensuring the program is not just a cash giveaway.

ENFORCEMENT

Transferred oversight authority from the Department of Revenue to the Washington State University extension energy program for evaluating applications, issuing certifications, and auditing records.

Replaced the Department of Revenue with the Washington State University extension energy program as the entity responsible for notifying the state if a utility fails to provide required data.

TECHNICAL

Corrected a clerical error in the tax preference performance statement by changing the reference from 'chapter . . .' to 'section 4 of this act'.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
13
Key actions
7
Committee
9
Jan 12, 2026
Introduced
By resolution, reintroduced and retained in present status.
lower
Feb 27, 2025
Committee
Referred to Appropriations.
lower
Feb 26, 2025
Lower · Passed
Minority; without recommendation.
lower
Feb 26, 2025
Lower · Passed
Minority; do not pass.
lower
Feb 26, 2025
Lower · Passed
Executive action taken in the House Committee on Finance at 8:00 AM.
lower
Feb 25, 2025
Lower · Passed
Public hearing in the House Committee on Finance at 8:00 AM.
lower
Feb 21, 2025
Committee
Referred to Finance.
lower
Feb 18, 2025
Lower · Passed
Minority; without recommendation.
lower
Feb 18, 2025
Lower · Passed
Executive action taken in the House Committee on Environment & Energy at 4:00 PM.
lower
Feb 10, 2025
Lower · Passed
Public hearing in the House Committee on Environment & Energy at 1:30 PM.
lower
1 primary · 6 co-sponsors

Sponsors