Published on July 20th, 2016 | by Adam Johnston0
US Congress Introduces US Storage Investment Tax Credit Bill
July 20th, 2016 by Adam Johnston
A new bill has been introduced in the US Senate and House of Representatives that could boost energy storage markets. The US Energy Storage Tax Incentive and Deployment Act is a bill which focuses on tax credits for both residential and business systems.
Martin Heinrich, a Democratic New Mexican Senator, put through the bill, which is modeled on the US solar Investment Tax Credit (ITC). Residential storage systems greater than 3 kWh (battery only), and 5 kWh for business systems, would be eligible for the proposed ITC. Sample energy storage systems include: thermal energy systems, flywheels, grid-based energy storage systems, pumped hydro, and behind-the-meter batteries.
Angus King, co-sponsor of the bill and Independent senator from Maine, said the proposed energy storage tax credit act would build on leading innovation to spur industry growth and reduce overall costs.
Heinrich hopes the bill will make energy storage markets more competitive, while supporting state-level incentives programs, including in California.
Last year was a monster year for energy storage markets, seeing 243% growth compared to 2014, deploying a record 221 MW. The US energy storage market will pass 1 GW in 2019, and reach 1.7 GW in 2020, reaching value worth $2.5 billion.
Add Tesla’s announcement regarding its Powerwall last year, and 2015 was a watershed year for energy storage. As last year was a groundbreaking year for energy storage innovation, 2016 is set to be the year where necessary policy helps boost a bright industry.
Photo by Scott Cooney, via CleanTechnica.pics.