Battery Storage Is Charging Up
January 23, 2023

The Tennessee Valley has an opportunity to lead the nation in battery storage technology .  As its members, the Local Power Companies (LPCs), explore battery storage options, Seven States is the go-to partner to streamline the process, aggregate projects for grant funding, and facilitate a successful deployment. Seven States has broad experience building partnerships to deploy a variety of different storage technologies, including at the US Space and Rocket Center , the University of Memphis , and Nissan’s manufacturing plant in Smyrna, TN.

Through their work with battery storage, LPCs continue to explore how this technology can enhance the reliability, resiliency, affordability, and sustainability of their operations.  For example, battery storage units can be dispatched effectively during valley-fill generation periods and provide high confidence generation for day-ahead programs that complement demand response programs. Reducing the monthly on-peak and all-peak demand can save an LPC more than $10 for each kW reduced. Understanding typical monthly load curves and strategically deploying battery storage units are key to optimizing this untapped opportunity.

Additionally, battery storage allows for end-of-line voltage support and serves as a core generation source for a microgrid. In other parts of the US, battery storage is used to provide ancillary transmission support services.

True to its purpose as a hub for innovation and information sharing, Seven States released two RFIs in 2022 to study the battery storage market. The results revealed two primary approaches to pricing for LPCs: leasing or owning. While leasing costs over the life of the project are expected to be higher than if the LPC purchases the system directly, it allows the LPC to minimize risk.  Direct ownership may yield lower costs; however, the LPC assumes operational risk.

In 2022, the battery storage market experienced unprecedented demand as well as unprecedented supply issues with core materials associated with lithium batteries. Battery prices increased by 7% in 2022, according to a recent Bloomberg report. Several utility battery manufacturers are switching to lithium iron phosphate (LFP) batteries because core materials are available and less expensive. As this transition continues and new battery manufacturing plants open in the US, prices are expected to levelize.

The Inflation Reduction Act of 2022 (IRA) provided new tax incentives for battery storage both by expanding the number of entities who are eligible and by raising the maximum potential savings percentages.

State and local governments (and political subdivisions thereof) are now eligible to receive the investment tax credit (ITC). Standalone battery storage projects are now eligible for ITCs (previously, battery storage was not eligible for the ITC unless it was tied to a solar array). The legislation also raised the maximum ITC rate from 26% to 30% — with some projects now even eligible to receive up to 50% in credit if the project meets additional requirements.

Federal tax incentives and market forces are combining to make battery storage solutions a better bet for LPCs in the Valley. If you want to learn more about battery storage for your LPC, give Seven States a call.

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By Jessica Bradshaw April 7, 2026
Seven States Power Corporation President and CEO, Betsey Kirk McCall, attended the Tennessee Valley Corridor (TVC) Board of Directors meeting in Washington, DC on March 4, 2026, joining regional leaders to discuss economic development, infrastructure investment, and the TVC’s upcoming National Summit. The TVC brings together stakeholders from government, industry, and academia to strengthen the region’s competitiveness and support long-term growth. McCall’s participation reinforced Seven States’ commitment to collaborating with regional partners to ensure the Valley’s energy systems continue to support economic expansion and community prosperity. During this visit, McCall also met with the U.S. Department of Agriculture's Rural Utilities Service staff to discuss additional federal financing opportunities that could support energy development across the Tennessee Valley. The conversation focused on Seven States’ request for nearly $6 billion in funding to acquire natural gas generation resources across the Valley. An additional $320 million could support distribution-scale Battery Energy Storage Systems (BESS), helping utilities strengthen grid reliability and modernization of the region’s power infrastructure. By strengthening relationships with federal leaders and advocating for policies that support growing energy demands in the Valley, McCall reinforced Seven States’ commitment to reliable, affordable and abundant power supply. McCall plans to attend the TVC's National Summit on May 28-29, 2026 in Chattanooga, TN to highlight the region's growth for economic prosperity.
By Jessica Bradshaw April 7, 2026
Seven States President & CEO, Betsey Kirk McCall, spent time at the Tennessee State Capitol on February 4, 2026, meeting with legislators including members of the Senate Energy, Agriculture and Natural Resources Committee, and the House Commerce Committee. A central focus of the meetings was providing an update on Seven States’ Energy Express project, an initiative designed to support growth in the Tennessee Valley with 220MW of battery storage. This project will be funded with a $439 million award by the U.S. Department of Agriculture’s Rural Utilities Service (USDA RUS) New ERA program. McCall shared how Seven States will leverage federal financing opportunities, such as their USDA award of $439 million along with access to additional federal funds, to build or acquire generation and capacity to meet energy demand across the region, particularly as TVA navigates its debt constraints. She updated the legislators on how funding available to Seven States complements and amplifies TVA’s efforts to maintain a reliable energy system. By pairing federal financing with regional expertise in project deployment, Seven States can help utilities of all sizes move energy projects forward. The Seven States team also successfully engaged in state-level advocacy efforts to help stop proposed legislation that would have imposed an additional tax on electric vehicle (EV) charging. Working alongside partners and stakeholders, Seven States communicated to lawmakers how the proposed tax could create unnecessary barriers to EV infrastructure development and slow innovation within Tennessee’s evolving energy and transportation sectors. These advocacy efforts serve to refine and advance initiatives that impact a rapidly changing energy landscape. Together with partner LPCs, Seven States is building and energizing the grid of the future.
By Jessica Bradshaw April 7, 2026
Seven States Power Leadership traveled to Washington, D.C., February 23–25 to meet with members of the Tennessee Valley congressional delegation while attending the American Public Power Association (APPA) Legislative Rally with the nation’s public power electric utilities. Seven States Board Chair, Jeff Dykes, (CEO, BrightRidge) and President & CEO, Betsey Kirk McCall engaged with federal leaders to advocate for more power supply, educate on the flexible financing available to Seven States as a generation and transmission cooperative, and build relationships with federal representatives on key energy issues. A central focus of the meetings was providing an update on Seven States’ Energy Express project, an initiative designed to support growth in the Tennessee Valley with 220MW of additional capacity. This project will be funded with a $439 million award by the U.S. Department of Agriculture's Rural Utilities Service. McCall and Dykes also led discussions highlighting how Seven States serves as an in-Valley solution to the Tennessee Valley Authority’s current debt constraint challenges. Through its financing capabilities, Seven States can own utility-scale power plants and double the impact of TVA’s capital investments, thereby expanding production and modernizing grid infrastructure. McCall and Dykes worked to educate policymakers about how aligning objectives and encouraging the use of Seven States as a mechanism for short- and mid-term financing solutions can unleash American energy faster. McCall plans to attend the NRECA Legislative Conference April 26 – 28 in Washington D.C. to continue these efforts with the nation’s electric cooperatives.
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