Combining solar panels with energy storage can provide significant financial incentives, both at the federal and state levels. Here are some of the key financial incentives available:
Federal Incentives
- Federal Investment Tax Credit (ITC): The ITC offers a 30% tax credit for solar panels and energy storage systems. Since January 2023, standalone energy storage systems with a capacity of 3 kilowatt-hours or more are eligible for this credit, even if they are not connected to solar panels. This tax credit can reduce the cost of a solar-plus-storage system by thousands of dollars.
- Clean Electricity Investment Credit (CEIC): For commercial properties, the CEIC provides a credit that can be up to 50% of the project cost for battery storage installations. This is dependent on factors such as the use of U.S.-based materials or location in energy communities.
State-Level Incentives
Several states offer additional incentives to encourage the adoption of solar and energy storage systems. These incentives often include rebates or performance-based payments.
- California: The Self-Generation Incentive Program (SGIP) offers a rebate based on the capacity of the energy storage system, with priority given to low-income households and those in high fire threat areas.
- Connecticut: The Energy Storage Solutions program provides residential customers with up to $16,000 in rebates and businesses with a 50% upfront incentive.
- Massachusetts: The Mass Save Connected Solutions program provides financial incentives and zero-interest financing to support battery installation.
- New York: Long Island residents can receive rebates for energy storage, though funds are limited.
- Oregon: Residents can receive rebates of up to $5,000 for solar systems and an additional $2,500 for energy storage.
These incentives can significantly reduce the upfront costs of installing solar and energy storage systems, making them more accessible to homeowners and businesses.
Utility and Performance-Based Incentives
Utility companies also offer performance-based incentives, especially for systems that contribute to grid stability. For example, in Connecticut, businesses can earn performance-based incentives twice a year for ten years for contributing energy during peak periods.
Overall, the combination of federal and state-level incentives, along with potential utility company rebates, can make solar-plus-storage systems more financially viable and attractive.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-financial-incentives-for-combining-solar-panels-with-energy-storage/
