US Congress urged to make energy storage ITC-eligible

November 28, 2018
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The US government has been urged to recognise the “critical role” energy storage can play in making the grid cleaner and able to accept more renewable energy, by increasing the eligibility of batteries and other technologies to receive the Investment Tax Credit (ITC).

The ITC is applicable to purchases of solar energy equipment in the US and effectively represents a 30% rebate for investors if fully realised. In recent years the policy scheme has been adjusted to include energy storage but for a long time, storage systems could only receive the Federal subsidy if installed at the same time as solar equipment.

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However, a bill proposed in 2016 by Senator Martin Heinrich of New Mexico, S.1868, would amend revenue codes to apply either the ITC, similar tax relief measures or include energy stored in batteries, flywheels and pumped hydro in ‘Energy Credits’ policies. Heinrich’s “Energy Storage Tax Incentive and Deployment Act of 2017″ would therefore see storage units rewarded for the energy they put into service on the grid and now has 11 co-sponsors from the Senate.

Yesterday, a joint letter was sent by the national Energy Storage Association (ESA), Solar Energy Industries’ Association (SEIA), American Wind Energy Association (AWEA), Advanced Energy Economy (AEE), National Electrical Manufacturers’ Association (NEMA), National Hydropower Association, Clearpath Action and Citizens for Responsible Energy Solutions urging Congress to support these actions.

Read the full version of this story at Energy-Storage.news

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