It's easy to focus on states where the burgeoning commercial energy storage markets are already thriving.
"Everyone knows California and New York are ripe," said Ravi Manghani, GTM Research's director of energy storage.
But there are some sleeper states where the economics already work, even though rates of adoption are low. A new report from GTM Research, The Economics of Commercial Energy Storage in the U.S, outlines the states where demand charges at the largest utility in each state would create a favorable rate of return for commercial energy storage. Even if the numbers pencil out, however, there can be other factors that help or hinder behind-the-meter energy storage, from fire codes to utility regulation.
Today, the pure demand-charge economics work in seven states that all provide an internal rate of return over 5 percent. You might be surprised at which states round out the list topped by California and New York.