We are solar experts, not tax experts. Tax codes are complicated, and can also vary by state, so consult your tax advisor before deciding what is best for your situation. Here is what we do know:
Eligibility for residential properties
If you are installing energy storage on a residential property, it is eligible for a credit under the ITC – as long as the battery is only charged by an on-site renewable energy system like solar. If you don’t have solar panels, and plan on charging the battery with electricity from the grid, it isn’t eligible for the 26 percent solar tax credit.
Eligibility for commercial properties
If you are installing energy storage on a commercial property, it is eligible for a credit under the ITC as long as the battery is charged by a renewable energy system more than 75 percent of the time. The exact value of the federal tax credit for batteries depends on how frequently the battery is charged by a renewable energy system. To claim the full value, the battery needs to be charged by renewable energy 100 percent of the time. Otherwise, the credit is based on the portion of renewable energy it receives.