Stand-alone energy storage tax credit legislation introduced in both the House and Senate

On March 9, U.S. Representative Mike Doyle (D-PA-18) was joined by Representative Vern Buchanan (R-FL-16) and Representative Earl Blumenauer (D-OR-03) in introducing the Energy Storage Tax Incentive and Deployment Act. This bipartisan legislation would create a stand-alone investment tax credit (ITC) for energy storage technologies for utilities, businesses and homes.

Photo courtesy of GreenBrilliance

“The Energy Storage Tax Incentive and Deployment Act would encourage the use of energy storage technologies, helping us reach our climate goals and create a more resilient and sustainable future” said Congressman Doyle. “Cost-effective energy storage is essential for adding more renewable energy to the grid and will increase the resiliency of our communities. This bill would promote greater investment and research into energy storage technologies, bolster the advanced energy economy, and create more clean energy jobs.”

Energy storage most commonly refers to batteries, but it also includes systems such as pumped hydropower, hydrogen storage (including electrolysis), thermal energy storage, regenerative fuel cells, or superconducting magnets. The wide variety of storage options gives grid operators, businesses, and homeowners flexibility in creating short, long, or even seasonal storage resources that work best for them.

“Energy storage is a critical part of the bold, comprehensive agenda that we must pursue to decarbonize our economy and address the climate emergency,” said Rep. Earl Blumenauer. “I’m glad to join Congressman Doyle in the effort to seek a once-in-a-generation opportunity to drive the growth of energy storage and take long overdue steps to save our planet.”

The Senate companion legislation was also introduced today by Senators Martin Heinrich (D – NM) and Susan Collins (R – ME) and the bill is supported by the U.S. Energy Storage Association and Citizens for Responsible Energy Solutions (CRES).

The Energy Storage Tax Incentive and Deployment Act expands the existing investment tax credit for solar energy and can apply to large, utility-scale energy storage projects or smaller battery systems for residential use. The current tax code allows an investment tax credit for energy storage when it is installed in conjunction with a solar energy system; this bill would extend the investment tax credit for energy storage investments to a wider range of applications and provide greater assurance to prospective investors.

“Without more energy storage, the United States will fail to achieve its urgent climate and clean energy goals and miss an opportunity to make power infrastructure more resilient to climate change,” said Jason Burwen, Interim CEO of the Energy Storage Association, ESA. “We urge Congress to follow the bipartisan example set today and pass this legislation to put storage on the same playing field as other clean energy technologies. If it does, we can power the economic recovery with jobs that build a cleaner, more resilient future for all.”

Click here for the text of the bill.

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Original Source: https://www.solarpowerworldonline.com/2021/03/stand-alone-energy-storage-tax-credit-legislation-introduced-in-both-the-house-and-senate/