The Clean Electricity Investment Credit (CEIC) is a significant incentive for commercial energy storage projects, offering up to 50% of the project cost for battery storage installations, with specific conditions such as using US-based materials or locating in energy communities. Here’s how it compares to other energy storage incentives:
Comparison to Other Incentives
| Incentive | Description |
|---|---|
| Federal Investment Tax Credit (ITC) | Provides a 30% tax credit for residential energy storage systems over 3 kWh, potentially reducing costs by $3,000 to $5,000. It requires that at least 75% of the energy used to charge the storage comes from solar. |
| Clean Electricity Investment Credit (CEIC) | Offers up to 50% credit for commercial battery storage projects under specific conditions. |
| California Self-Generation Incentive Program (SGIP) | Provides a dollar per kilowatt rebate for energy storage, with additional funds for high fire threat districts and low-income households. It offers a combination of upfront and performance-based payments. |
| Connecticut Energy Storage Solutions | Offers up to $16,000 in incentives for residential customers and a 50% upfront incentive for businesses. |
| Massachusetts Mass Save Connected Solutions | Provides financial incentives and zero-interest financing for battery installations. |
Key Differences
- CEIC vs. ITC: The CEIC offers more flexibility and potentially higher credits for commercial projects than the ITC, which has stricter requirements and applies to residential systems. The CEIC is specifically aimed at commercial and industrial sectors, benefiting large-scale projects more substantially.
- CEIC vs. State Incentives: While state programs like California’s SGIP and Connecticut’s Energy Storage Solutions provide direct financial support or performance-based incentives, the CEIC offers broader benefits for large-scale, commercial projects across the U.S., contingent on meeting specific conditions.
Overall, the CEIC is a powerful tool for encouraging commercial energy storage, surpassing many state-level incentives in terms of potential financial benefit. However, state programs often provide more tailored support, particularly for residential users or specific use cases like resilience in high-risk areas.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-does-the-ceic-compare-to-other-energy-storage-incentives/
