Yes, you can combine federal and state incentives for energy storage in your second home. Here’s how it works:
Federal Incentives
- Investment Tax Credit (ITC): The federal government offers a 30% investment tax credit for residential clean energy equipment, including battery storage, under the Residential Clean Energy credit. This credit can be applied through 2032, then steps down to 22% by 2034.
- Direct Pay Provision: If you’re not eligible for the ITC due to tax limitations, there are other provisions like the Direct Pay for tax-exempt entities, but this typically applies to organizations rather than individuals.
State Incentives
- California: California’s Self-Generation Incentive Program (SGIP) provides significant rebates for energy storage installations, with higher incentives for high-risk areas and low-income households.
- New York: New York offers incentives like the Market Acceleration Bridge Incentive Program, providing upfront payments per kWh installed.
- Massachusetts: Programs such as ConnectedSolutions offer financial incentives for reducing peak energy use through battery storage.
- Connecticut: The Energy Storage Solutions Program provides upfront rebates and performance-based incentives, which can significantly offset installation costs.
Combining Incentives
- Eligibility: Ensure your second home and energy storage installation qualify for both federal and state incentives. For example, if you’re in California, you can combine SGIP rebates with the federal ITC.
- Application Process: Apply for state incentives first, as these often require proof of installation. Then, claim the federal ITC when filing your taxes.
- Consult Professionals: Since programs and eligibility can be complex, consulting with energy or tax advisors can help ensure you maximize all available incentives.
By leveraging both federal and state incentives, you can significantly reduce the cost of installing energy storage systems in your second home.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-combine-federal-and-state-incentives-for-energy-storage-in-my-second-home/
