Internal Revenue Service determines new tax credit eligibility rules for solar storage
The Internal Revenue Service (IRS) recently determined that residential energy storage systems charged entirely from an onsite solar array are eligible for the 30 percent solar investment tax credit.
“This ruling likely opens up an opportunity for storage technologies in the residential solar sector,” the Solar Energy Industries Association (SEIA) said in a press release. “We’d like to see clarity on how this could be broadened to additional solar projects.”
The Federal Energy Regulatory Commission (FERC) approved orders last month on energy storage participation in wholesale power markets. The rules must, FERC said, allow storage to provide energy, capacity, and ancillary services as well as set wholesale market prices as a buyer or seller of electricity. They must also respect the operational characteristics of storage, such as discharge duration or state-of-charge requirements, and set a minimum size for market participation of not more than 100 kW.
“These developments change the landscape for energy storage and level the playing field in a way that allows the technology to integrate and compete with generators and other grid resources,” SEIA said.
