Incentives for residential energy storage systems are available at the federal, state, and local levels, along with utility company offerings. Here are some of the types of incentives and how they work:
Federal Incentives
- Investment Tax Credit (ITC): The Inflation Reduction Act offers a 30% tax credit for residential energy storage systems of 3 kWh or more through 2032. This credit applies to both solar panels and storage systems when installed together.
- Annual Energy Efficiency Credits: While not directly for storage, homeowners can claim credits for energy-efficient upgrades, which can sometimes include battery systems.
State and Local Incentives
- California’s Self-Generation Incentive Program (SGIP): Offers a dollar per kilowatt rebate for energy storage installations. Incentives are higher for low-income households and high fire threat districts.
- Connecticut’s Energy Storage Solutions: Residential customers can earn up to $16,000 per installation, with additional incentives for sending energy to the grid.
- Massachusetts’ Mass Save Connected Solutions: Provides financial incentives and zero-interest financing for battery installation to support grid stability.
- New York’s Long Island Energy Storage Incentive: Offers $250 per kilowatt rebate for battery storage on Long Island.
- Hawaii Battery Bonus Program: Offers cash incentives and bill credits for participating residents, especially those who commit to providing power during peak hours.
Utility Company Incentives
- Rebates for Grid-Connected Systems: Some utility companies offer rebates for installing grid-connected energy storage systems, which can range from a few hundred to several thousand dollars.
Financing Options
- Loans and Leasing Programs: Available to help finance the upfront costs of energy storage systems.
- Property Assessed Clean Energy (PACE) Financing: Allows homeowners to finance energy upgrades through their property tax bills, repaid over several years.
These incentives can significantly reduce the cost of installing residential energy storage systems, making them more accessible to homeowners.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-types-of-incentives-are-available-for-residential-energy-storage-systems/
