Smart Cities

What does ITC Reversion mean for the Energy Storage Sector?

The energy storage market is rapidly becoming one of the most exciting spaces in the renewable arena. There have been various suggestions made about the size and structure of batteries to be used in grid scale storage, but there seems to be little doubt about the future demand for the storage itself. Energy storage paired with solar is eligible for the federal Investment Tax Credit (ITC), according to IRS Private Letter Ruling 121432-12. There are certain caveats; first, the systems have to be installed at the same time. Second, at least 75% of the electricity used to charge must come from the solar system. Finally, the ITC is reduced in proportion to the amount of energy used to charge it that does not come from the solar system. For example, the owner of a $100,000 storage system that gets 20% of the energy used to charge it from the grid would be able to claim […]

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