There has never been a better time than right now to invest in a battery system like the Tesla Powerwall 2.0. That’s because the IRS has issued some phenomenal news to battery system users: The federal solar tax credits now extend to battery systems that are added as retrofits. The policy is expected to “open the floodgates” for companies like Infinity Solar, Inc of Orange that already offer energy storage to their offerings.
In some cases, including one couple who claimed a federal Investment Tax Credit (ITC) for a battery, inverter, wiring and software that was added to their rooftop PV system, people can expect up to a 30% credit come tax time.
While this will surely become an even more popular market opportunity, it also shows taxpayers how the IRS views solar retrofits — and can lead to new guidance that allows for all retrofits of storage to take the tax credit.
More Reasons to Seriously Consider a Battery System
Backing up a residential solar system to the grid used to be a homeowner’s only viable option. Now, the proliferation of advanced batteries, like the Tesla Powerwall 2.0, are creating another method of managing one’s own power profile. You can charge the batteries with excess solar and then discharge them when there is no sun. You can also use the batteries to ride through times when clouds are overhead or power demands spike.
Put it this way:
If your home is entirely off-grid, that excess power will go to waste. If your home is grid-tied, your locality may allow you to sell the excess back to the grid through net metering or a feed in tariff. But this capability is not universally available, nor is it valued the same everywhere. Arizona, for example, has implemented net metering charges, making it less appealing.
Installing batteries allows you to consume all this excess power yourself, when you want it.
Additionally, solar alone can help offset grid costs, but it isn’t flexible. What if the sun isn’t shining when electricity is most expensive? This is where storage becomes important.
If you have solar panels on your home, batteries give you the flexibility to offset peak electricity use. Charge your batteries with solar, then discharge them whenever electricity is most expensive. But even if you don’t have solar, batteries can be useful. You can charge the batteries during less expensive times and discharge them during more expensive times.
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