Yes, there are several government incentives available for installing battery storage systems:
Federal Incentives
- Residential Clean Energy Tax Credit (25D): This program offers a 30% tax credit for eligible costs of purchasing and installing battery storage systems with a capacity of 3 kilowatt-hours (kWh) or greater. The credit applies to primary or secondary homes and is available through 2032.
- Inflation Reduction Act (IRA): Extends the federal tax credit to standalone battery storage systems, providing a 30% incentive for systems purchased through 2032.
- Clean Electricity Investment Credit (CEIC): Offers up to 50% of project costs for commercial battery storage installations, depending on specific requirements like using US-based materials or benefiting energy communities. This replaces IRA in 2025 for commercial properties.
State and Local Incentives
- California: The Self-Generation Incentive Program (SGIP) provides rebates per kilowatt of energy storage, with higher incentives for high fire threat districts and low-income households.
- Connecticut: Offers up to $16,000 for residential installations and 50% savings for businesses, plus performance-based incentives.
- Massachusetts: Provides financial incentives and financing solutions through Mass Save Connected Solutions.
- New York: Offers rebates and performance-based incentives through various programs.
- Hawaii: The Battery Bonus Program provides cash incentives and bill credits for participating in peak energy demand.
- Oregon: Offers up to $5,000 for solar systems plus an additional $2,500 for battery storage.
These incentives can significantly reduce the upfront costs of installing battery storage systems. It’s important to consult with a tax advisor to ensure eligibility and compliance with the specific requirements of each incentive.
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