IRS Sets A New Milestone for Solar-Plus-Storage
The Internal Revenue Service just served up a positive signal that adding Solar Storage Batteries to your existing solar will qualify you for the 30% Federal ITC (Tax Credit.)
Battery Prices have Fallen 75% Since 2010
With battery prices falling, and rebates for batteries rising, the case for arming your home against grid blackouts and emergency events with back-up batteries just became a very easy choice to make.
The Private Letter Ruling was issued to a single taxpayer; it applies only to that specific case, and the IRS says it doesn’t set a precedent. Even so, it tells accountants everywhere how the agency is interpreting the tax law and precedent does apply to tax law.
For Existing Solar – Not Storing Energy from The Grid
The main provision in the letter states that the energy stored in the battery can NOT be from the grid – but MUST be generated energy from solar. It’s a simple matter to comply with the proviso by installing controls that don’t allow power from the grid to go to the battery, we have done it before many times.
The Solar Investment Tax Credit (ITC) for homes remains at 30 percent though 2019, then drops to 26 percent in 2020, and 22 percent in 2021 before ending at the end of that year.
The California SGIP (Self generation Incentive Program) currently offers rebates that can greatly reduce the cost of a home battery system even more. This incentive program provides a rebate based on the size of the battery you install, measured in watt-hours (Wh) or kilowatt-hours (kWh) which is equal to 1,000-watt-hours.
- The size of the rebate can depend on your utility: Email for details ChristineB@Revsolar.net
- Currently all the utilities are operating on the same rebate levels: $0.35 per Kilowatt Hour for the first 10kWh of battery capacity.
- For an average home the SGIP rebate can equal $3,500 and that is about 1/3 of the cost of a battery system added to the existing solar at your home. Add to that the 30% Tax Credit and you see why now a great time to get a quote!
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