The growing popularity of home battery storage has prompted officials to push for a separate tax break for homeowners investing in solar storage systems. This report by Energy Monitor Worldwide outlines the proposition. Learn more about making your home more resilient and prepped for power outages with Panasonic's EverVolt™battery storage.
Rep. Mike Doyle, D-Pa., was joined by Rep. Vern Buchanan, R-Fla., and Rep. Earl Blumenauer, D-Ore., in introducing the Energy Storage Tax Incentive and Deployment Act. The bipartisan legislation would create a standalone investment tax credit (ITC) for energy storage technologies for utilities, businesses and homes.
The Energy Storage Tax Incentive and Deployment Act would encourage the use of energy storage technologies, helping us reach our climate goals and create a more resilient and sustainable future, says Doyle. Cost-effective energy storage is essential for adding more renewable energy to the grid and will increase the resiliency of our communities. This bill would promote greater investment and research into energy storage technologies, bolster the advanced energy economy and create more clean energy jobs.
Companion legislation was also introduced by Sen. Martin Heinrich, D-N.M., and Sen. Susan Collins, R-Maine, and the bill is supported by the U.S. Energy Storage Association and Citizens for Responsible Energy Solutions (CRES).
Energy storage systems often serve as complementary reserves to renewable resources like wind and solar power. They can be used to lower costs for electricity during peak demand, when energy is the most expensive, or to provide backup power during power outages.
Energy storage most commonly refers to batteries, but it also includes systems such as pumped hydropower, hydrogen storage (including electrolysis), thermal energy storage, regenerative fuel cells or superconducting magnets. The wide variety of storage options gives grid operators, businesses and homeowners flexibility in creating short, long or even seasonal storage resources that work best for them.
The Energy Storage Tax Incentive and Deployment Act expands the existing investment tax credit for solar energy and can apply to large, utility-scale energy storage projects or smaller battery systems for residential use. The current tax code allows an investment tax credit for energy storage when it is installed in conjunction with a solar energy system this bill would extend the investment tax credit for energy storage investments to a wider range of applications and provide greater assurance to prospective investors.
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