While there are no specific tax credits or grants solely dedicated to commercial peak shaving projects, there are incentives that can benefit such initiatives indirectly. Here are some relevant programs:
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Energy Storage Tax Credits:
- The Inflation Reduction Act (IRA) provides a 30% federal tax credit for energy storage systems, including those used for peak shaving. This credit is applicable to both residential and commercial projects with a minimum capacity of 3 kWh and 5 kWh respectively.
- These credits can be increased with additional incentives, such as the domestic content and energy community adders, which could raise the total credit to 50% under certain conditions.
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Solar and Energy-Related Incentives:
- Projects combining solar with energy storage for peak shaving can also qualify for solar tax credits. The IRA provides a 30% Investment Tax Credit (ITC) for solar systems, which can be used in conjunction with energy storage.
- There are also Production Tax Credits (PTC), but projects can only claim one type of credit, either ITC or PTC.
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Potential Grants and State Incentives:
- While not specifically for peak shaving, some states and utilities offer grants or rebates for energy efficiency and renewable energy projects, which might include peak shaving components. These vary by location, so it’s beneficial to explore local and state-level incentives.
Given the current landscape, leveraging broader energy storage and solar incentives can help make commercial peak shaving projects more economically viable. Consultation with tax and energy experts is recommended to maximize applicable credits and grants for specific projects.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-tax-credits-or-grants-specifically-for-commercial-peak-shaving-projects/
