Battery Storage Technology Tax Credit

For more information, please visit battery energy storage system—outdoor products.

Your go-to resource for the latest advice from ENERGY STAR experts on saving energy at home and work.

Who can use this credit?

Existing homes and new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify. This system must be installed in connection with a dwelling unit located in the United States and used as a residence by the taxpayer.

The home served by this system does not have to be the taxpayer's principal residence. A principal residence is the home where you live most of the time. The home must be in the United States. It can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home.

For more battery management system supplierinformation, please contact us. We will provide professional answers.

Increasingly, a number of states now also offer energy storage rebates to encourage the growth of the storage industry. These incentives typically take one of two forms: an upfront rebate or a performance-based incentive. Rebate programs are exactly what they sound like: states provide a direct cash payment after your battery is installed and connected to the grid. To date, state-level performance incentives for storage have typically been added to solar incentives.

California

Perhaps the best-known state-level storage incentive in the US is California's Self-Generation Incentive Program (SGIP). SGIP provides a dollar per kilowatt ($/kW) rebate for the energy storage installed. While the rebate level steps down as more homes and businesses add storage in California, in 2020, the state updated SGIP to provide more funding and higher levels of incentives for customers in high fire threat districts and for low-income customers to help provide emergency backup power to those that need it most.

Maryland

Maryland is one of the only, if not the only, states in the country currently offering a storage-specific tax credit for its residents. The tax credit covers 30% of the cost of your storage system, up to $5,000 for residential batteries and up to $150,000 for commercial batteries. But act fast–this incentive is currently only authorized through the 2022 tax year and there's a cap on the level of funding available each year. 

Massachusetts

Massachusetts offers a storage adder under the commonwealth's solar-focused SMART incentive program. If you're installing storage with a solar panel system, the per-kilowatt-hour incentive you're paid for solar production will actually increase as a result of purchasing storage as well. (Yes, it's interesting that the storage incentive pays you based on solar production, but we're not complaining.) 

New York

While the state of New York has significant policy targets for energy storage (3 gigawatts by 2030!!), and while there are plenty of incentives for commercial-scale storage, the only incentive currently available for homeowners in the state at present is for residents of Long Island. This program offers a similar rebate-style incentive to California's SGIP program, with the state currently offering a $250 per kilowatt rebate to Long Island residents. But this incentive won't last forever–as of early 2021, 70% of the funds were already committed. 

Want more information on c&i battery? Feel free to contact us.