Tag: Residential Battery

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The Energizer – Volume 95
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Tax Credits for Storage After Solar or Wind?

The Energizer – Volume 95

By: Buck B. EndemannDaniel S. CohenMolly K. BarkerNatalie J. ReidMatthew P. ClarkNathan C. HoweMaeve C. TibbettsOretha A. Manu

There is a lot of buzz around clean technology, distributed energy resources (DERs), microgrids, and other technological innovations in renewable energy and clean transport industries, and how these developments can contribute to solving longstanding environmental justice issues. As these innovations develop, energy markets will undergo substantial changes to which consumers and industry participants alike will need to adapt and leverage. Every other week, K&L Gates’ The Energizer will highlight emerging issues or stories relating to the use of DERs, energy storage, emerging technologies, hydrogen, and other innovations driving the energy industry forward.

IN THIS ISSUE: 

  • Form Energy Announces Development of Iron-Air Long-Duration Commercial Battery Product
  • Hawaiian Electric Offers Customers Incentives to Add Battery Storage to Their Rooftops
  • American Clean Power Association Releases 2020 Annual Report
  • Orbital Marine Power Connects Tidal Turbine to Electric Grid in the United Kingdom
  • Xcel Energy Accelerates Decarbonization Plans

Tax Credits for Storage After Solar or Wind?

By Elizabeth Crouse, Elias Hinckley and William Holmes

On Friday, March 2, the Internal Revenue Service released Private Letter Ruling (“PLR”) 201809003. The PLR is not binding precedent, but it indicates that the IRS will permit a taxpayer to claim a Code Section 25D credit in respect of a residential battery installed after the solar panels to which it will be attached was installed. In the PLR, the IRS expressly states that it will treat the battery as property that “uses solar energy to generate electricity,” provided only solar energy is used to charge it.

The PLR concerns individuals claiming a credit for a residential system, but don’t stop reading. This outcome matters for C&I and utility scale projects also.

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