A 21st century gold rush is upon us, as individuals, businesses and utilities sprint to install energy storage systems using the new storage investment tax credit (ITC) included in the IRA. For the first time, batteries don’t have to be installed with or charged by solar panels to receive a tax credit. Systems of any size — from residential backup to grid-scale peaking aids — will have access to a 30% ITC.
Credit: Briggs & Stratton
This development should transform the storage market, just as the solar ITC jumpstarted the industry upon its introduction 15 years ago.
“This ITC means [storage] now makes sense at C&I, at residential, you can afford to provide resiliency,” said Jennifer Gallegos, director of strategic sales and communications for panel-level battery maker Yotta Energy.
As stated in the IRA, the storage ITC is available to batteries over 3 kWh in the residential…
An energy storage boom is coming thanks to the new storage ITC
