Yes, there are government incentives and tax credits available for installing a home battery system. Here are some key details:
Federal Incentives
- 25D Residential Clean Energy Property Credit: This incentive offers a 30% tax credit on the cost of eligible home battery storage systems. It applies to systems with a capacity of at least 3 kilowatt-hours (kWh) and installed between January 1, 2022, and December 31, 2032. This credit can be claimed annually for qualifying projects. Labor costs and certain installation expenses are also eligible.
- Eligibility: Both new and existing homes qualify, including principal and second residences. Rentals do not qualify unless part of a residence used by the taxpayer.
Claiming the Credit
- IRS Form 5695: To claim the credit, complete this form and submit it with your federal tax return.
- Credit Cap: The credit is uncapped, meaning there’s no maximum amount you can claim, but it must be used within the tax year it’s claimed.
Additional Incentives
- State and Local Programs: Several states offer additional rebates and incentives for battery storage, such as California’s Self-Generation Incentive Program and Connecticut’s Energy Storage Solutions.
Keep in mind that tax laws and incentives can change, so it’s always a good idea to consult with a tax advisor to ensure you’re taking full advantage of all available credits and incentives.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-government-incentives-or-tax-credits-available-for-installing-a-home-battery-system/
