Tax credits that helped propel solar and wind power into the mainstream are now moving into the U.S. energy storage sector.
Inflation Reduction Act extended to independent energy storage a tax credit covering 30% of the investment size. Previously, tax credits were limited to energy storage combined with solar energy, which means there is some limited incentive to build battery storage systems for grid services. More than 93% of the battery capacity that went online last year was co-location with solar energyaccording to the US Energy Information Administration.
