Introduced by Rep. Mike Doyle (D-PA), the “Energy Storage Tax Incentive and Deployment Act” is the latest update to a bill first introduced in 2016 by Sen. Martin Heinrich (D-NM).
The proposed bill would establish a federal investment tax credit for business, residential, and utility-scale use of batteries and other energy storage technologies.
Most importantly, the legislation seeks to establish a 30 percent tax credit for both commercial and residential energy storage through 2021.
“This proposal would enable the deployment of solar and energy storage to benefit parts of the country with less consistent sunshine primarily by not requiring the batteries to only charge from solar production” commented Enrico Ladendorf, the founder of Houston-based energy storage software intelligence firm Pason Power.
The incentive would then be phased down annually before leveling off to a standard, permanent 10 percent tax credit after 2021 for commercial projects and would zero out for residential projects.
“With the current state of the prices of batteries, an ITC credit applied to standalone batteries has the potential to make the business case for standalone storage even stronger. This would enable opportunities to deploy batteries beyond the few markets where energy storage is currently economic. As such, we appreciate the initiative this legislation supports,” adds Ladendorf.