Congress Urged To Give Energy Storage Same Tax Incentives As Wind And Solar

on November 29, 2018

A coalition of lobby groups from the breadth of the US clean energy industry is pressing Congress to make standalone energy storage project eligible for investment tax credits (ITC).

The credits, awarded at a rate of 30%, lit the fuse for US wind and solar power projects and could in theory grease the wheels of the nascent sector.

At the moment, there is ambiguity over the eligibility of storage equipment when paired with solar, wind or other compatible technologies. It does not qualify in its own right.

The letter gently reminds its targets that Energy Secretary Rick Perry described energy storage as “the holy grail”. Groups including the Energy Storage Association (ESA) and the Solar Energy Industries Association (SEIA) signed the letter to the leaders of both Houses. It states:

Energy storage systems are critical to modernization of the electric grid. The National Governors Association has underscored the multiple benefits of energy storage to save utilities, businesses, and households money while enhancing grid reliability and resilience. Energy storage systems are also fuel-neutral and help any generation resource connected to the grid – coal, gas, nuclear, wind, solar, hydro – become more efficient, productive, and competitive. The energy storage industry supports over 90,000 jobs today and has significant room to grow.

The legislation, Energy Storage Tax Incentive and Deployment Act (S. 1868 and H.R. 4649), has support across the aisle and covers energy storage technologies in all its current viable forms. That ever-growing list includes the familiar Lithium-ion batteries at the heart of Tesla’s Powerwall as well pumped hydro, flywheels, hydrogen and more.

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Fractal Energy Storage ConsultantsCongress Urged To Give Energy Storage Same Tax Incentives As Wind And Solar