Residential Systems (Primary Focus)
- 2017–2019: 30% credit for systems placed in service between January 1, 2017, and December 31, 2019
- 2020–2021: 26% for systems installed between January 1, 2020, and December 31, 2021
- 2022–2032: 30% under the Inflation Reduction Act (IRA) for installations from January 1, 2022, to December 31, 2032
- 2033: 26% for systems installed between January 1, 2033, and December 31, 2033
- 2034: 22% for systems installed between January 1, 2034, and December 31, 2034
Commercial/Industrial Systems
The Investment Tax Credit (ITC) applies to storage paired with renewables:
- Pre-2020: 30% if charged by renewables ≥75% of the time (e.g., 80% renewable charging = 24% credit)
- Post-IRA (2022–2032): The IRA revises rules, but the provided data does not specify updated commercial percentages. Residential credits remain at 30% through 2032.
Key Eligibility for Residential Credits
- Capacity: ≥3 kWh (most systems exceed this easily)
- Location: Installed in U.S. residences (primary or secondary homes; rentals excluded)
- Claim Process: Use IRS Form 5695.
For commercial systems, consult IRS guidelines for post-2022 ITC details under the IRA. Residential credits are explicitly outlined through 2034.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-tax-credit-percentages-for-battery-storage-systems-installed-in-different-years/
