In addition to battery storage technology, other types of energy storage or technologies do not explicitly qualify for the residential clean energy tax credit under the same terms as battery storage. However, the legislation has expanded to include various renewable energy systems, and there are ongoing efforts to broaden the eligibility for other energy storage forms:
- Battery Storage: Qualifies for the tax credit, with a requirement of a minimum capacity of 3 kilowatt-hours. Both connected to solar and standalone systems are eligible for a 30% credit if installed after December 31, 2021, and before January 1, 2033.
- Solar, Wind, Geothermal, Fuel Cells: These renewable energy sources are all eligible for the Residential Clean Energy Credit.
- Other Energy Storage Technologies: While not explicitly listed under the Residential Clean Energy Credit, there are efforts to include other storage technologies such as pumped hydro, compressed air, flywheels, thermal storage, and hydrogen storage, under a separate or modified investment tax credit (ITC). Currently, these are not automatically eligible for the same residential credit as battery storage.
To qualify for these credits, systems must be installed in connection with a dwelling unit in the United States and used as a residence by the taxpayer. Rentals do not qualify.
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