TOOLS AND MARKET INTELLIGENCE

ValenceTM DER Market Momentum

C&I Distributed Energy Market Dashboard

A directional view of distributed-energy market activity, regional C&I market conditions, monetizable value pathways, and state or utility programs that can materially affect project economics.

v7.25 Released Sep. 27, 2026 BETA

Markets to Watch

Monthly watchlist of markets where distributed-energy conditions appear to be improving or becoming more actionable.

  • PJM — 4-hour wholesale price optionality is the strongest of the six tracked markets and improved 22.2% versus the prior three-month period.
  • Illinois — current utility guidance confirms a $250/kWh C&I storage rebate for qualifying storage paired with renewable generation.
  • New Jersey — keep on watch: transmission-scale GSESP is active, while distributed/BTM Phase 2 terms remain developing.

Notable Incentive Program Changes

Recent program developments most likely to influence the C&I battery value stack in near-term market screening.

  • Illinois — C&I storage rebate guidance materially strengthens the battery-specific value stack.
  • Maryland — FY26 Residential & Commercial Energy Storage funding is closed after full budget requests; FY27 is anticipated in summer 2026.
  • New Jersey — distributed GSESP Phase 2 should not be treated as fully active until final launch/terms are verified.

Largest Positive Changes

Largest favorable changes across wholesale optionality and material state-program developments in the current framework.

  1. PJM wholesale price optionality improved 22.2%; 4-hour gross arbitrage value is $77.8/kW-year.
  2. Illinois verified $250/kWh C&I storage rebate materially improves the state-level battery value stack.
  3. Rhode Island battery rebate and ConnectedSolutions pathways remain a strong small-market combination.

Largest Negative Changes

Largest recent declines in 4-hour wholesale price optionality based on trailing three months versus the prior three months.

  1. ISO-NE wholesale price optionality weakened 40.4% versus the prior three-month period.
  2. MISO wholesale price optionality weakened 19.4%.
  3. NYISO wholesale price optionality weakened 19.3%.

Distributed Energy Momentum Indicator

12-month national C&I distributed-energy market activity trend
72.4May 2026
60708006/2507/2508/2509/2510/2511/2512/2501/2602/2603/2604/2605/2672.4

Regional C&I Market Drivers - ISO/RTO

Directional view of regional C&I market conditions and the ability of distributed energy resources to capture value.
How to read the two ratings: Market Need & Tailwinds measures underlying demand for DER solutions. Monetizable DER Value measures the value a representative C&I asset can practically capture under current market, tariff and program conditions.
PJM
Strong
Market Need & Tailwinds
Strong
Monetizable DER Value
Load Growth / CapacityVery Strong
Reliability / ResilienceStrong
C&I Cost / Market PressureConstructive
BTM DER / StorageConstructive
Value-capture pathways
Customer Avoided CostConstructive
Wholesale Price Optionality WPO-PJMStrong · Improving
Ancillary ServicesConstructive
Capacity / DRStrong
State / Utility ProgramsMixed
Primary drivers: Exceptional large-load growth and mature demand-response participation are strong drivers. Value capture is led by capacity/DR and ancillary-service access; state incentives vary widely across the footprint.
2026 Load Forecast ↗ Demand Response ↗ Ancillary Services ↗
ERCOT
Very Strong
Market Need & Tailwinds
Mixed
Monetizable DER Value
Load Growth / CapacityVery Strong
Reliability / ResilienceVery Strong
C&I Cost / Market PressureConstructive
BTM DER / StorageVery Strong
Value-capture pathways
Customer Avoided CostMixed
Wholesale Price Optionality WPO-ERCOTMixed · Weakening
Ancillary ServicesWeak
Capacity / DRWeak
State / Utility ProgramsConstructive
Primary drivers: Rapid load growth, extreme summer demand, exposure to scarcity pricing and 4CP transmission charges, and an active competitive retail market create strong reasons for C&I customers to manage when and how they use power. Flexible load, storage and on-site generation can all play a role, although current ancillary-service and reliability-program revenues are less supportive than the market's underlying need.
Load Forecast ↗ Market Prices ↗
MISO
Constructive
Market Need & Tailwinds
Mixed
Monetizable DER Value
Load Growth / CapacityVery Strong
Reliability / ResilienceStrong
C&I Cost / Market PressureConstructive
BTM DER / StorageModerate
Value-capture pathways
Customer Avoided CostConstructive
Wholesale Price Optionality WPO-MISOMixed · Weakening
Ancillary ServicesWeak
Capacity / DRWeak
State / Utility ProgramsWeak
Primary drivers: Large-load additions and reliability complexity are rising quickly. Value-capture pathways exist but are less uniformly mature for C&I BTM assets than in PJM, ERCOT or California.
Reliability Imperative ↗ Load Forecasting ↗
NYISO
Strong
Market Need & Tailwinds
Strong
Monetizable DER Value
Load Growth / CapacityConstructive
Reliability / ResilienceStrong
C&I Cost / Market PressureVery Strong
BTM DER / StorageStrong
Value-capture pathways
Customer Avoided CostVery Strong
Wholesale Price Optionality WPO-NYISOMixed · Weakening
Ancillary ServicesMixed
Capacity / DRMixed
State / Utility ProgramsConstructive
Primary drivers: High electricity costs, active state DER programs and demand-response pathways support strong economics. Local New York incentive programs materially strengthen the regional value stack.
Power Trends ↗ Demand Response ↗
ISO-NE
Strong
Market Need & Tailwinds
Very Strong
Monetizable DER Value
Load Growth / CapacityConstructive
Reliability / ResilienceStrong
C&I Cost / Market PressureVery Strong
BTM DER / StorageStrong
Value-capture pathways
Customer Avoided CostVery Strong
Wholesale Price Optionality WPO-ISONEMixed · Weakening
Ancillary ServicesConstructive
Capacity / DRConstructive
State / Utility ProgramsConstructive
Primary drivers: Very high retail electricity costs and winter reliability exposure are reinforced by meaningful DR/wholesale pathways. State-level programs are uneven; Massachusetts materially outperforms the regional average.
Order 2222 / DER Aggregation ↗ System Forecast & Status ↗
CAISO
Strong
Market Need & Tailwinds
Strong
Monetizable DER Value
Load Growth / CapacityConstructive
Reliability / ResilienceModerate
C&I Cost / Market PressureVery Strong
BTM DER / StorageVery Strong
Value-capture pathways
Customer Avoided CostVery Strong
Wholesale Price Optionality WPO-CAISOWeak · Stable
Ancillary ServicesStrong
Capacity / DRConstructive
State / Utility ProgramsStrong
Primary drivers: The deepest distributed-storage ecosystem and strong incentive/wholesale value stack offset improved near-term resource adequacy and lower current resilience pressure.
Summer Assessment ↗ OASIS Market Data ↗

State / Utility DER Value Overlays

Local programs can materially change C&I DER economics inside the same ISO/RTO.
Massachusetts Priority
ISO-NE · Eversource · National Grid · Unitil
Very Strong
Why it matters: The benchmark program-driven market: performance-based demand response and a separate clean-peak certificate value can be stacked with wholesale-market pathways, creating a deep BTM storage value stack.
Commercial ConnectedSolutions
Demand response / performance incentive · Active
Value basisPerformance-based payment tied to average seasonal kW reduction
Access95/100 · Very Strong
EligibilityC&I electric customers of participating Mass Save sponsors
TechnologyLoad controls and energy storage
Clean Peak Energy Standard
State clean-peak incentive · Active; 2026 revisions finalized
Value basisClean Peak Energy Certificates reward performance during seasonal peak periods. The 2026 rule changes to minimum obligations and the storage multiplier became permanent in August; value continues to depend on certificate prices and applicable multipliers.
Access94/100 · Very Strong
EligibilityQualified clean peak resources
TechnologyQualified storage and other clean peak resources
ISO-NE DER Aggregation / Order 2222
Wholesale market access · Implementation effective Nov. 1, 2026
Value basisCapacity, day-ahead/real-time energy and ancillary-service participation depending on participation model
Access86/100 · Very Strong
EligibilityEligible DER aggregations; minimum aggregation size 100 kW
TechnologyLoad, generation and storage
Reviewed 2026-09-27
New York Priority
NYISO · Con Edison · National Grid · NYSEG · RG&E · Central Hudson · Orange & Rockland
Very Strong
Why it matters: A highly developed C&I value stack combining NYSERDA commercial-storage incentives, utility-specific peak-load relief programs and NYISO demand-response / DER participation pathways.
NYSERDA Commercial Energy Storage
State storage incentive · Active
Value basis$/kWh incentive varies by region and available block; enhanced rates may apply to qualifying critical facilities and disadvantaged-community projects
Access95/100 · Very Strong
EligibilityGrid-connected commercial customers; program eligibility varies by region and project
TechnologyStandalone or paired commercial energy storage
Con Edison Commercial System Relief / Demand Response
Utility demand response · Active
Value basisPayments for reducing load during called peak periods; program-specific rates and performance rules apply
Access91/100 · Very Strong
EligibilityEligible commercial customers and aggregators in Con Edison territory
TechnologyCurtailable load and dispatchable DER
NYISO Demand Response / DER Participation
Wholesale market access · Active
Value basisReliability-based programs plus economic scheduling / DER participation opportunities
Access87/100 · Very Strong
EligibilityQualified demand-response resources and DER participants
TechnologyDemand response, storage and aggregated DER
Reviewed 2026-09-27
Rhode Island Priority
ISO-NE · Rhode Island Energy
Very Strong
Why it matters: A particularly strong small-market analogue to Massachusetts: Rhode Island Energy offers C&I ConnectedSolutions and the state now offers direct BTM battery rebates for systems up to 250 kW.
C&I ConnectedSolutions
Demand response / performance incentive · Active
Value basisPay-for-performance based on average kW curtailed; Daily Dispatch and Targeted Dispatch pathways are available
Access95/100 · Very Strong
EligibilityRhode Island Energy C&I customers in eligible rate classes
TechnologyBehind-the-meter batteries, thermal storage and curtailable load
Energy Storage Rebate Program
Upfront storage rebate · Active
Value basisDirect financial rebate funded through RGGI proceeds; first-come, first-reserved subject to available program funds
Access94/100 · Very Strong
EligibilityRhode Island homes and businesses meeting program requirements
TechnologyBehind-the-meter battery storage up to 250 kW
ISO-NE DER / wholesale participation
Wholesale market access · Active / expanding
Value basisCapacity, energy and ancillary-service value subject to participation model
Access86/100 · Very Strong
EligibilityQualified demand resources and DER aggregations
TechnologyLoad, generation and storage
Reviewed 2026-09-27
Maryland Developing
PJM · BGE · Pepco · Delmarva Power · Potomac Edison
Strong
Why it matters: Maryland already offers practical C&I access to PJM demand response through utility/CSP pathways, while utility battery and virtual-power-plant initiatives are moving toward broader commercial-customer participation.
PJM Demand Response via Maryland utilities / CSPs
Demand response / wholesale access · Active
Value basisCustomers may participate through CSPs in real-time, day-ahead, forward capacity and reserve opportunities depending on program and qualification
Access86/100 · Very Strong
EligibilityQualifying Maryland commercial and industrial customers
TechnologyCurtailable load and eligible DER
Maryland Residential & Commercial Energy Storage Program
State battery grant · FY26 closed; FY27 anticipated autumn 2026
Value basisGrant support for qualifying residential and commercial battery systems; FY26 requests exceeded the $2 million budget and the FY27 funding opportunity has been announced for autumn 2026 but is not yet open.
AccessConstructive - funding-cycle dependent
EligibilityQualifying Maryland commercial and residential applicants under the applicable funding opportunity
TechnologyBattery energy storage systems
Reviewed 2026-09-27
Pennsylvania Watch
PJM · PECO · PPL · Duquesne Light · FirstEnergy utilities
Mixed
Why it matters: Pennsylvania has mature PJM demand-response and wholesale-market pathways, but no broad statewide C&I BTM battery incentive comparable to the Tier 1 states was identified in the current public program review. The opportunity is therefore more market-driven than incentive-driven.
PJM Demand Response / wholesale access
Demand response / wholesale access · Active
Value basisCapacity, energy and reserve-market compensation subject to PJM rules and CSP arrangements
Access82/100 · Strong
EligibilityQualified commercial and industrial customers through CSPs / market participants
TechnologyCurtailable load, storage and qualifying DER
RISE PA
Competitive industrial decarbonization grant · Round 2 closed; future rounds pending
Value basisCompetitive grants support qualifying industrial emissions-reduction projects, including eligible on-site renewable energy and storage configurations. The second medium- and large-scale application round closed August 7, 2026.
AccessTargeted - not a broad standard battery rebate
EligibilityQualifying Pennsylvania industrial facilities and projects under solicitation rules
TechnologyIndustrial decarbonization measures including eligible on-site renewable and storage configurations
Reviewed 2026-09-27
Connecticut Priority
ISO-NE · Eversource · United Illuminating
Very Strong
Why it matters: One of the closest Massachusetts analogues. Energy Storage Solutions directly rewards battery deployment and grid-demand reduction, while commercial demand response and ISO-NE access add recurring value-capture pathways.
Energy Storage Solutions
Storage incentive / performance value · Active
Value basisIncentives for installing storage and reducing demand on the electric grid; program terms vary by customer segment and dispatch performance
Access95/100 · Very Strong
EligibilityEligible Connecticut electric customers including commercial facilities
TechnologyBehind-the-meter battery storage
Commercial Demand Response
Utility / market demand response · Active
Value basisCompensation for demand reduction through available curtailment and battery-storage pathways
Access89/100 · Very Strong
EligibilityCommercial and industrial customers able to curtail load
TechnologyCurtailable load and battery storage
ISO-NE DER / wholesale participation
Wholesale market access · Active / expanding
Value basisCapacity, energy and ancillary-service value subject to participation model and aggregation requirements
Access86/100 · Very Strong
EligibilityQualified demand resources and DER aggregations
TechnologyLoad, generation and storage
Reviewed 2026-09-27
California Priority
CAISO · PG&E · Southern California Edison · SDG&E
Very Strong
Why it matters: California combines the nation's deepest BTM storage ecosystem with non-residential storage rebates, emergency/flexible-load compensation and mature wholesale market participation. Program eligibility is highly tariff- and customer-specific.
Self-Generation Incentive Program (SGIP)
Storage capital incentive · Active
Value basisRebate for qualifying storage installations; budget category, customer type and equity/resilience eligibility affect economics
Access92/100 · Very Strong
EligibilityEligible non-residential customers of participating investor-owned utilities
TechnologyEnergy storage and other qualifying distributed resources
Emergency Load Reduction Program (ELRP)
Emergency demand response · Active pilot / program
Value basisCompensation for incremental load reduction during called grid-emergency periods
Access89/100 · Very Strong
EligibilityCommercial and other eligible participants through participating utilities / providers
TechnologyFlexible load and dispatchable DER
CAISO wholesale / ancillary-service access
Wholesale market access · Active
Value basisEnergy, capacity-related and ancillary-service value according to CAISO market participation rules
Access90/100 · Very Strong
EligibilityQualified market resources and aggregations
TechnologyStorage, demand response and flexible DER
Reviewed 2026-09-27
New Jersey Developing
PJM · PSE&G · JCP&L · Atlantic City Electric · Rockland Electric
Constructive
Why it matters: New Jersey issued a distributed-storage Phase 2 Block 1 straw proposal in August 2026, but the initial block is residential-focused. A commercial and industrial framework is anticipated later, so the current evidence does not support a C&I incentive uplift yet.
Garden State Energy Storage Program - Distributed Phase 2
State distributed storage incentive · Residential-first proposal; comments closed Sep. 10
Value basisThe Phase 2 Block 1 proposal focuses on residential behind-the-meter storage and may inform later C&I offerings. The public comment period closed September 10, 2026, but no active broad C&I incentive is assumed in this score.
AccessPending - not assigned a precise access score
EligibilityDistributed front-of-meter and behind-the-meter systems under final Phase 2 rules
TechnologyDistributed energy storage
PJM Demand Response / ancillary pathways
Wholesale market access · Active
Value basisCapacity, energy and reserve-market compensation subject to PJM rules and CSP arrangements
Access79/100 · Strong
EligibilityEligible C&I customers through curtailment service providers / market participants
TechnologyCurtailable load, storage and qualifying DER
Reviewed 2026-09-27
Illinois Developing
PJM / MISO · ComEd · Ameren Illinois
Strong
Why it matters: Illinois combines commercial-solar REC support, PJM/MISO market access and an active utility storage rebate for qualifying C&I systems paired with renewable generation. The Illinois Power Agency has also begun developing a broader Storage for All program, but no incremental C&I value is assumed before final terms are available.
Illinois Shines
Commercial solar REC incentive · Active
Value basisLong-term REC contract value under current program blocks and project categories
Access89/100 · Very Strong
EligibilityEligible distributed-generation and community-solar projects under program categories
TechnologySolar PV; storage may be paired but the core incentive is solar REC value
Regional DR / wholesale market access
Demand response / wholesale access · Active; territory-dependent
Value basisCapacity, energy and ancillary-service opportunities vary by ISO, aggregator and resource qualification
Access75/100 · Strong
EligibilityQualified C&I customers in PJM (ComEd) or MISO (Ameren) territories
TechnologyCurtailable load, storage and qualifying DER
ComEd / Ameren C&I Storage Rebate
Utility storage rebate · Active, with operating-program obligations
Value basis$250/kWh for qualifying C&I energy storage paired/interconnected with renewable generation; utility program participation requirements apply
AccessStrong - eligibility and operating obligations must be checked
EligibilityQualifying C&I customers in ComEd or Ameren territory under current utility rebate rules
TechnologyEnergy storage associated with renewable generation
Reviewed 2026-09-27
Released September 27, 2026 · National momentum through May 2026 · Wholesale Price Optionality through June 2026 · Material program status reviewed through September 27, 2026