Investment Tax Credit for Energy Storage
Energy storage systems are being deployed with residential, commercial and utility applications, helping all generation sources connected to the grid become more efficient and cost-competitive. Encompassing a multitude of technologies, including chemical batteries, thermal, and pumped hydro, energy storage stores excess energy and converts it back to electricity when most needed. This inherent flexibility is critical to building a resilient, reliable and sustainable electrical grid.
In 2015, Congress extended the Investment Tax Credit to encourage the deployment of solar energy technology. Currently, storage systems integrated with solar have proven to be a viable alternative in markets where conventional energy sources dominate the grid. Despite the benefits, renewable energy plus storage projects face numerous regulatory and financing challenges.
This factsheet explains SEIA's position on supporting passage of the Energy Storage Tax Incentive and Deployment Act.