Regulators and utility corporations are starting to understand the potential of energy storage throughout the United States. As a result, there are currently several tax credits, rebates, and utility programs offered by the federal and state governments for residential solar batteries. 

Others provide an incentive for buying a battery. Some of them include conditions, such as reserving battery capacity for the usage of utilities. 

Although home solar batteries are expensive, these incentives can significantly lower their price. Additionally, it is essential to have the assurance that you will be safeguarded in the case of a power outage.

If you’re interested in solar energy and batteries for your house, learn if your state or utility is promoting home energy storage with incentives by consulting the following instructions. 

How to qualify for the federal renewable energy tax credit while using batteries?

Installing solar panels on a home entitles the owner to a significant tax benefit. The present federal renewable energy tax credit reimburses homeowners 30% of the initial cost of solar panel installation during tax season the year after the panels are put in. Fortunately, whether built with solar panels or not, batteries are also eligible for tax credits.

Before 2022, a battery storage system was required to obtain all of its power from solar sources to be eligible for the tax credit. Then, the Inflation Reduction Act was approved by Congress, updating the tax credit to cover batteries that were not charged by solar energy. 

The last crucial fact to be aware of is that to qualify for the ITC, taxpayers must have a tax burden. You can claim the credit over more than one year even if you don’t owe taxes in the same amount; nevertheless, you can only use the credit to reduce taxes that you would have otherwise due.

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