What Incentives Are Available For Residential Energy Storage Systems In The USA?
Updated: Apr 18
In the United States, the federal government currently provides an investment tax credit (ITC) for eligible residential solar+energy storage systems installed before December 31, 2023. The ITC provides a credit of 26% of the cost of the system, including installation. However, IRA amended the schedule for the previous tax credit so it would remain at 30% for solar and battery equipment “placed in service” after December 31, 2021 and before January 1, 2033. Starting January 2023, households can receive an uncapped 30% tax credit for a battery storage installation, even if it's not paired with a solar system.
Additionally, some states and utilities may offer additional incentives for residential energy storage systems. For example, the Self-Generation Incentive Program (SGIP) in California offers rebates for installing residential energy storage systems. The amount of the rebate can vary depending on factors such as the size of the system, the location, and the time of installation.
As of September 2021, the SGIP rebate for residential energy storage systems in California was $250 per kWh. This covers approximately 25 percent of the cost of an average energy storage system.
There are also incentive multipliers available for systems installed in areas that are considered "disadvantaged communities," or for systems that are paired with solar PV systems. These incentive multipliers can increase the rebate amount by up to 200%. To get the most up-to-date information on the SGIP program and other incentives that may be available for residential energy storage systems in California, you can visit the California Public Utilities Commission website or consult with a reputable installer.
New York State also has a program called NY-Sun that offers incentives for installing energy storage systems in combination with solar PV systems. The incentive amount for residential energy storage systems in the NY-Sun program was $250 per kWh, up to a maximum incentive of $6,250 per residential system.
The incentives available and their specific terms and conditions can vary depending on the state, the utility company, and the program. It's important to research the specific incentives that may be available in your area and consult with a reputable installer of residential energy storage systems to determine your eligibility and the steps necessary to claim any available incentives.