Yes, you can combine federal and state incentives for energy storage systems. Here’s how:
Federal Incentives
The federal government offers several incentives for energy storage systems:
- Investment Tax Credit (ITC): The Inflation Reduction Act (IRA) extends the ITC to standalone energy storage systems with a capacity of at least 3 kWh, providing a 30% tax credit on the system’s cost for residential installations through 2032.
- Clean Electricity Investment Credit (CEIC): For commercial properties, this credit offers up to 50% of the project cost for battery storage installations.
State Incentives
State incentives vary widely but can be combined with federal credits to further reduce costs:
- California: Offers the Self-Generation Incentive Program (SGIP) with rebates for energy storage.
- Connecticut: Provides the Energy Storage Solutions program with upfront rebates and performance-based incentives.
- Maryland: Offers the Maryland Energy Storage Income Tax Credit (MESITC) of up to 30% of the installed cost, capped at $5,000 for residential systems.
- Massachusetts: Includes incentives like Mass Saves Connected Solutions.
- New York: Offers specific incentives based on project location.
Combining Incentives
To maximize savings, you can combine federal ITC or CEIC credits with state-level rebates or tax credits, depending on your location and the specific programs available. It’s essential to consult with tax professionals to ensure compliance with both federal and state requirements.
In summary, by combining federal tax credits with state-specific incentives, you can significantly reduce the upfront cost of energy storage systems.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-combine-federal-and-state-incentives-for-energy-storage-systems/
