Washington, D.C. – Colorado U.S. Senator Michael Bennet, with a bipartisan group of colleagues, today introduced the Energy Storage Tax Incentive and Deployment Act of 2019 to establish an investment tax credit for business and home use of energy storage.
“Energy storage needs to be at the forefront as we increasingly transition to renewable energy,” Bennet said. “By encouraging investments in these rapidly developing technologies and by lowering costs, we can make a more carbon-free and resilient electric grid.”
Energy storage complements intermittent renewable resources, such as wind and solar to increase full-time availability, provide backup power in case of emergencies, and help reduce the need for high-cost power during periods of peak demand – such as during the coldest mornings or hottest afternoons. According to the U.S. Department of Energy, there are about 25,000 megawatts of installed energy storage in the United States, including over 700 megawatts of battery storage.
The proposed tax incentives are modeled on the current investment tax credits for solar energy and apply to either large, grid-connected energy storage systems or to smaller battery systems for residential power. Home battery storage, coupled with a small wind or roof-top solar system, could be used to store energy during the day for use later in the day or during overcast skies and to help consumers reduce their energy bills.
The Energy Storage Tax Incentive and Deployment Act is supported by the Energy Storage Association (ESA), as well as the Advanced Energy Economy (AEE), American Council on Renewable Energy (ACORE), American Wind Energy Association (AWEA), ClearPath Action, Citizens for Responsible Energy Solutions (CRES), National Electrical Manufacturers Association (NEMA), National Hydropower Association (NHA), and the Solar Energy Industries Association (SEIA).
The bill text is available HERE.