5 Best Practices to Overcome Energy Storage Permitting Hurdles in California

To help meet California’s goals for transitioning to 100% renewable energy resources by 2045, state legislators and energy regulators are seeking to expand residential and commercial use of small-scale battery energy storage systems.  

Battery energy storage, installed on the customer’s side of the electricity meter, can store energy from renewable solar and wind for later use. It also helps homeowners/property owners avoid and adapt to grid outages – even during fires and extreme weather – and helps utilities balance energy demands on the grid. 

As more California residents and businesses ask electrical contractors to install energy storage systems, it has become clear that local government permitting practices often add significantly to project timelines and costs. 

To streamline processes and reduce delays, the Center for Sustainable Energy and its partners* recently published the Energy Storage Permitting Guidebook as part of a California Energy Commission-funded project. 

Permitting can be a bottleneck to energy storage adoption 

Battery energy storage projects can involve a range of considerations such as selecting the appropriate technologies, determining the optimal system size and location, addressing safety and environmental concerns, managing grid integration, establishing control and monitoring systems, and navigating regulatory and permitting processes. (See Behind-the-Meter Energy Storage FAQs.)  

Projects must meet state building requirements, but each of California’s 540+ authorities having jurisdiction (AHJs) has its own permitting processes. This results in overly complex and inconsistently applied regulations, codes and fire standards. 

The Energy Storage Permitting Guidebook examines regulatory barriers to battery energy storage systems and provides best practices for AHJs to standardize permitting.  

Key findings and recommendations 

1. Technology changes complicate permitting 

Energy storage technology is evolving rapidly. So as new battery types come on the market, it complicates permitting. Problems arise in how to conduct inspections and what components need review, particularly when parts are assembled as a single system.  

Best practice: Battery energy storage system manufacturers should provide permitting officials with online and in-person equipment training. 

2. Updates of codes are not aligned 

The design and installation of battery energy storage systems are governed by four sets of state codes: residential, building, fire and electrical. It’s not always clear how they interact, particularly when codes are updated at separate times, some only every three years.  

Best practice: Incentivize AHJs to review and update local permitting codes more frequently.  

3. Codes are applied inconsistently 

Unlike other building equipment, battery energy storage systems are relatively new, so how codes are applied to planning and review is not always clear. This leads to permitting application errors and frequent requests for minor plan updates that are costly and delay projects.  

Best practice: Create state-level guidance and formatting standards on how AHJs should apply codes. 

4. Fire safety recommendations are unclear 

Equipment must meet overall fire potential standards set by UL Solutions that evaluate its operational safety. However, standards do not specify such aspects as equipment spacing or on-site fire safety measures, making it difficult for local fire agencies to decide what meets requirements.  

Best practice: Create statewide guidance on how to apply the fire code to battery energy storage and work with the Office of the State Fire Marshal to educate AHJ officials and installers. 

5. Installations often require other alterations 

Adding an energy storage system to an existing electrical system often requires reconfiguring circuits. This may prompt upgrades or alterations to other electrical equipment, which increases the plan’s complexity and requires time for more reviews and inspections.  

Best practice: Require statewide certification of electrical inspectors so that they are better equipped to handle multiple types of equipment field inspections. 

Help is available 

To simplify the energy storage system permitting process, AHJs are encouraged to automate using the software package SolarAPP+, developed by the National Renewable Energy Laboratory, one of the guidebook’s project partners. It can thoroughly review energy storage plans and conduct some 150 code compliance checks.  

The guidebook provides step-by-step instructions for AHJs to adopt SolarAPP+ and for installers to use the platform to submit projects for permit review. Currently, SolarAPP+ is being evaluated for energy storage system permitting in 109 California AHJs. 

Streamlined permitting will bring energy storage benefits faster 

Battery energy storage benefits include: 

• Ensuring uninterrupted power during grid outages.  
• Reducing monthly utility bills by shifting load demand. 
• Decreasing fossil fuel energy generation and carbon emissions.  

Accelerating deployment of energy storage requires standardizing disparate and often confusing permitting processes and increasing training. California has achieved similar success in streamlining permitting and compliance for rooftop solar and electric vehicle charging stations. It is now poised to clear the pathway for expedited energy storage system adoption.  

*Partners in the guidebook are Pacific Northwest National Laboratory, Guidehouse, California Solar & Storage Association and the U.S. Department of Energy National Renewable Energy Laboratory.  

A version of this article previously appeared in North American Clean Energy magazine. 

Rebates may cover 100% of energy storage system costs 

California’s Self-Generation Incentive Program (SGIP) provides rebates for qualifying residents and businesses to purchase battery energy storage systems. Rebates vary by utility service provider, fire hazard risk, income qualifications and other factors. While most utility customers qualify for 15%-20% savings, others can recover up to 100% of both equipment and installation costs. Learn more at Participating in SGIP.