Yesterday, Senators Heinrich (D-NM) and Gardner (R-CO) introduced bipartisan legislation to create an energy storage investment tax credit (ITC). It currently has 10 cosponsors representing a diverse collection of states.
The legislation, labeled the Energy Storage Tax Incentive and Development Act, is a companion bill to legislation introduced by Rep. Doyle in the House last week
“We strongly support and thank Senators Heinrich and Gardner for introducing the Energy Storage Tax Incentive and Development Act and committing to modernizing the U.S. energy supply,” said Tom Kiernan, CEO of the American Wind Energy Association (AWEA). “Americans want their homes and businesses to be powered by clean energy. Spurring investment in our country’s energy storage technologies, along with transmission, will advance clean energy, create new jobs and help bring America’s power supply into the 21st century.”
Energy storage technologies — including batteries, flywheels, pumped hydro, thermal storage, compressed air, and others—are a source of reliability services and flexibility for the power grid. Storage helps balance power supply and demand instantaneously by storing electricity from low-cost energy sources, like wind, and releasing that power during periods of high demand.
Storage systems deliver these benefits whether they are connected to the grid as an independent resource or when storage is paired with any energy source.
However, current law only allows energy storage to qualify for an ITC when paired with a solar project under certain circumstances. The flexibility and market efficiencies resulting from accelerated energy storage investment would spur new wind farm development and job creation.
Filed Under: Energy storage, News, Policy