Energy storage industry rallies behind Congressional bills to create energy storage investment tax credit
The Energy Storage Tax Incentive and Deployment Act, introduced this week by U.S. Reps. Mike Doyle (D-PA), Vern Buchanan (R-FL), and Earl Blumenauer (D-OR), has gained storage industry support for its effort to establish a standalone energy storage investment tax credit.
That credit would potentially apply to utilities, businesses, and homes. The legislators also point to it as a means of decarbonizing the economy, preparing for climate change, and increasing efficiency.
“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,” Doyle said. “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.”
Companion legislation was introduced in the Senate by U.S. Sens. Martin Heinrich (D-NM) and Susan Collins (R-ME). Both gained the support of the U.S. Energy Storage Association (ESA) and Citizens for Responsible Energy Solutions (CRES).
These bills would, if passed, expand the existing ITC for solar energy and apply it to large, utility-scale energy storage projects and smaller battery systems intended for residential use. While current law allows ITC usage for energy storage attached to solar energy systems, this legislation would remove such limits and open up a wider array of options for storage projects.
“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,” Jason Burwen, Interim CEO of ESA, said. “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.”
To date, it is estimated the U.S. energy storage industry employs more than 60,000 people. The ESA has also proposed that at least 100 GW of energy storage will be needed to bring the electric system and energy transition efforts up to current demands. By contrast, the U.S. currently has a little over 3 GW of battery storage deployed.
“Expanding investment tax credits (ITC) for energy storage is a pro-growth, no-brainer policy that will support any power generation connected to the grid—wind, solar, hydro, nuclear, gas, coal—to become more efficient, productive and competitive,” Heather Reams, executive director of CRES, said. “Federal tax incentives will spur significant private sector investments in energy storage, putting the full power of American innovation towards building our next-generation energy infrastructure for the future.”
