When is Energy Storage Eligible for the 30 Percent ITC?
February 17, 2016
By Susan Kraemer, Correspondent
Near the end of 2015, the IRS quietly put out a request for comments to update a little known rule on storage eligibility for the 30 percent Investment Tax Credit (ITC). The timing seemed odd, with the ITC about to expire. But, the IRS must have been privy to what congress was about to do, in passing the Christmas Miracle of a five-year ITC extension at 30 percent.
With an updated rule, clarifying when an ITC applies to storage, the solar-plus-storage market could experience the rapid expansion that the solar market experienced in the last decade.
“A new ruling from the IRS will provide clarity needed to unlock the solar + storage industry,” said Jigar Shah, former SunEdison CEO and now Founder of Generate Capital, financing Commercial & Industrial (C&I) $0-down renewable energy upgrades.
Batteries had been eligible for the 30 percent ITC, as Renewable Energy World reported in 2013, under certain little-known guidelines set by the IRS in 2013. But it was unclear what percentage of storage was eligible.