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Investment tax credit (ITC) for storage
The best incentive for solar batteries is the federal investment tax credit (ITC). The exact same ITC that provides a 30% credit on the cost of your solar system also provides the same benefit to storage systems. For a typical home energy storage system, this incentive provides another $3,000 to $5,000 in savings.
Are all batteries eligible for the ITC?
The main factor that influences whether your battery is eligible for the ITC or not is the size of your battery: residential batteries need to be at least 3 kilowatt-hours (kWh) to be eligible, and commercial batteries need to be over 5 kWh to take advantage of the credit.
In the past, only batteries charged with an on-site renewable energy technology (like solar panels) were eligible to claim the credit. This has changed thanks to the successful passage of the Inflation Reduction Act. Starting in 2023, standalone storage systems (i.e. batteries not connected to a solar panel system) will also be eligible for the 30% federal tax credit