Incentives to offset the costs associated with local regulations for energy storage systems primarily come from federal and state-level programs. Here are some key incentives and considerations:
Federal Incentives
- Investment Tax Credit (ITC): The ITC provides a 30% tax credit for the cost of energy storage systems, including standalone systems, thanks to the Inflation Reduction Act (IRA). This can significantly reduce the upfront cost of battery installations, although standalone storage must be charged from an on-site renewable source until recent changes made by the IRA.
- Clean Electricity Investment Credit (CEIC): This credit offers up to 50% of the project cost for battery storage installations on commercial properties, depending on factors like using US-based materials or locating in energy communities.
State-Level Incentives
- Rebates and Performance Incentives: Many states offer rebates or performance incentives to encourage energy storage adoption. These programs help offset the costs of complying with local regulations by reducing the financial burden of installation.
Examples of State Incentives
- California – Self-Generation Incentive Program (SGIP): Offers tiered rebates, with increased incentives for areas prone to wildfires and low-income households. SGIP provides significant upfront savings and includes performance-based payments.
- Connecticut – Energy Storage Solutions: Provides up to $16,000 per residential installation and 50% savings for businesses. It includes a performance incentive for grid support during peak periods.
- Massachusetts – Mass Save Connected Solutions: Offers financial incentives and zero-interest financing to reduce installation costs and support grid stability.
These incentives can help mitigate the costs of complying with local regulations by directly reducing the financial burden of energy storage installations. However, specific local regulation costs may not be directly addressed unless they are factored into the broader cost savings provided by these incentives.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-incentives-available-to-offset-the-costs-of-local-regulations-for-energy-storage-systems/
