Solar panels and battery storage work together to give you greater control over your electricity. With residential solar plus battery storage, you can use more of the electricity you produce, reducing your reliance on the electric grid and increasing your energy independence.
But do solar batteries qualify for tax credits?
Yes! The federal solar tax credit applies to solar panels and battery storage, so you can save 30% on the cost of a new solar plus battery system.
*DISCLAIMER: While this blog post discusses solar tax credits and filing your returns, you should ALWAYS consult your tax professional for your specific situation. We do not assume responsibility for your tax situation or credits
The solar tax credit and the solar battery tax credit are one and the same. They’re both part of the Renewable Clean Energy Credit, which applies to solar panels, solar battery storage systems, wind turbines, geothermal heat pumps, and fuel cells.
The Renewable Clean Energy Credit has been around for a long time but it was recently revamped as part of the Inflation Reduction Act. When the Inflation Reduction Act was signed in 2022, the Renewable Clean Energy Credit (aka the solar tax credit) was increased to 30%. The new and improved solar tax credit explicitly includes “qualified battery storage technology expenditure,” which means energy storage systems like solar batteries are covered.
The solar tax credit in 2024 is worth 30% of your total solar installation costs. To be eligible for the credit 2024, your solar energy system must be installed and turned on by the last day of the year.
Most solar battery systems are eligible for the 30% solar tax credit. But there are some stipulations. To qualify, your battery must:
The 30% federal tax credit for battery storage is available for solar battery systems that are installed between 2023 and 2032. At the end of 2032, the solar tax credit will be reduced annually and eventually phased out.
Installing solar plus storage sooner rather than later can secure tax credit savings and a faster solar payback period!
In most cases, solar batteries can be added to an existing solar system. Depending on the system’s design and the inverter used, updates may be required before the solar system can support a battery. Because of the complexities involved, we only add batteries to systems we originally installed.
It’s more cost-effective to install solar panels and battery storage at the same time. But, if you want to go solar now and aren’t ready to invest in a battery bank, we can install a “battery-ready” system. A battery-ready system is set up to support battery storage so it can be easily added at a later date.
The federal tax credit for solar batteries makes solar battery storage more affordable, but it’s still an investment. So is it worth it? It depends on your unique situation and needs. For some homes, solar batteries make a lot of sense because they provide greater energy security and backup power. For others, the added cost is ultimately not worth it.
Boston Solar can help you weigh the pros and cons of a solar battery so you can decide whether it’s worth the investment. If you do decide to install solar with battery storage, you can look forward to:
Ready to take control of your energy? Boston Solar can help with professional solar panel and battery installation in Massachusetts and southern New Hampshire. We’ve been empowering New England for over 11 years and have installed thousands of solar panels and battery systems. We will make sure your system is designed to provide the maximum amount of renewable energy for your home, and that it qualifies for the solar panel and home battery tax credit.
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