US states took 481 grid modernization actions in Q2 2026, report finds
NC Clean Energy Technology Center’s Q2 2026 grid modernization report counted 481 state actions, led by energy storage deployment proposals, on July 22, 2026.
Photo by Robert So on Pexels
The NC Clean Energy Technology Center (NCCETC), part of North Carolina State University’s College of Engineering, released the Q2 2026 edition of its quarterly report “The 50 States of Grid Modernization” on July 22, 2026, finding that 44 states, the District of Columbia and Puerto Rico took a combined 481 grid modernization actions during the quarter, in addition to more than 300 introduced bills. The grid modernization report, compiled with NCCETC’s DSIRE Insight policy database, tracks state regulatory and legislative activity on utility business models, energy storage, microgrids, demand response and rate reform. California, Maryland, Virginia and New Jersey saw the most action during the quarter, followed by Illinois, New Mexico, Louisiana and New York, according to the center.
Where the activity concentrated
Energy storage deployment proposals accounted for the largest single category of action, with 63 recorded actions, followed by interconnection rules (47), utility business model reforms (46), performance-based energy storage incentives (35), performance-based regulation (32) and smart grid technology deployment (29). “We’re seeing a continued trend towards increased scrutiny on utility investments,” said Nick Montoni, Senior Program Director at NCCETC, in the report, pointing to states directing studies of cost-saving grid technologies and expanding utility scenario-modeling requirements.
| Grid modernization action category | Actions in Q2 2026 |
|---|---|
| Energy storage deployment proposals | 63 |
| Interconnection rules | 47 |
| Utility business model reforms | 46 |
| Performance-based energy storage incentives | 35 |
| Performance-based regulation | 32 |
| Smart grid technology deployment | 29 |
Source: NC Clean Energy Technology Center, “The 50 States of Grid Modernization,” Q2 2026 edition, July 22, 2026.
Location-based incentives and top policy moves
The report identifies three trends in the quarter’s activity: utilities pursuing location-based incentives to steer distributed energy resources (DERs) to where the grid benefits most, policymakers scrutinising utility infrastructure spending more closely, and states enabling virtual power plant (VPP) participation in wholesale power markets. “Increasingly, location-based incentives are being incorporated into utility programs to encourage targeted deployment of distributed energy resources where the grid can benefit the most,” said Autumn Proudlove, Managing Director for Policy and Markets at NCCETC, adding that the approach can reduce the need for other grid investments while offering direct financial benefit to customers “at a time when energy affordability is a top concern.”
NCCETC named five specific developments as the quarter’s top policy moves: Minnesota regulators approved Xcel Energy’s virtual power plant program, described as a first of its kind; the Maryland Public Service Commission approved separate virtual power plant programs; California regulators opened a review of advanced electric rate design; Virginia lawmakers enacted a series of new grid modernization laws; and the North Carolina Utilities Commission approved dynamic line rating prototypes, a technology that allows power lines to carry more electricity when conditions permit.
The grid modernization report’s Q2 2026 findings extend a broader state-level push already visible earlier this year, including New York’s $24 million grid-enhancing technologies program, which funds tools to raise the capacity of existing power lines, and follows continued expansion of battery storage capacity such as Transgrid’s grid-forming battery role in the New South Wales grid, reflecting a parallel international trend toward grid-stabilising storage investment.
Background
NCCETC has published “The 50 States of Grid Modernization” quarterly since 2014, tracking state legislative and regulatory activity on grid modernization topics through its DSIRE Insight policy database, a continuation of the center’s long-running Database of State Incentives for Renewables and Efficiency (DSIRE). As part of NC State University’s College of Engineering, the center advances clean energy technology, practices and policy through technical assistance, training and applied research, and has tracked grid modernization policy trends quarter over quarter since energy storage and demand-response policy first became a significant share of state utility dockets in the mid-2010s. The Q2 2026 edition, covering April through June, shows energy storage deployment proposals as the single largest category of state action for the period, continuing a trend the center has documented in prior quarterly editions as states balance rising electricity demand, in part from data centers and electrification, against calls to control the cost of new grid infrastructure.
Sources: NC Clean Energy Technology Center; pv magazine USA; Daily Energy Insider
Featured image: photo by Robert So on Pexels (free Pexels license).
Become a Sponsor
Our website is the heart of the mission of WINSS – it’s where we share updates, publish research, highlight community impact, and connect with supporters around the world. To keep this essential platform running, updated, and accessible, we rely on the generosity of you, who believe in our work.
We offer the option to sponsor monthly, or just once choosing the amount of your choice. If you run a company, please contact us via info@winssolutions.org.
I specialize in sustainability education, curriculum co-creation, and early-stage project strategy. At WINSS, I craft articles on sustainability, transformative AI, and related topics. When I’m not writing, you’ll find me chasing the perfect sushi roll, exploring cities around the globe, or unwinding with my dog Puffy — the world’s most loyal sidekick.
