To qualify for federal incentives, specifically the Residential Clean Energy Credit (also known as the 25D tax credit), battery storage systems must meet certain criteria:
- Capacity: The battery storage system must have a capacity of at least 3 kilowatt-hours (kWh).
- Installation Location: The system must be installed in a dwelling unit located in the United States and used as a residence by the taxpayer. Rentals do not qualify, but the residence does not have to be the taxpayer’s principal residence.
- Usage: The battery storage system must be used in the dwelling unit as a residence, even if it’s not the primary residence.
- Year of Installation: For the 30% tax credit, the system must be installed between January 1, 2022, and December 31, 2032. The credit phases down to 26% in 2033 and 22% in 2034.
- Eligible Costs: Costs eligible for the tax credit include the purchase and installation of the battery storage system, including labor costs for onsite preparation and assembly.
- New Equipment: The battery storage system must be new and not previously used.
These criteria apply under the Residential Clean Energy Credit program, which covers a variety of renewable energy technologies, including solar electric panels, solar water heaters, wind turbines, geothermal heat pumps, and fuel cells.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-types-of-battery-storage-systems-qualify-for-federal-incentives/
