Battery Energy Storage System Definition and the Federal Solar Tax Credit
The recently signed Inflation Reduction Act guarantees a solar tax credit for new installations over the next decade. You can now claim a federal credit of up to 30% of the cost of your solar system on your federal income tax. Considering solar with a battery backup system, you can have confidence knowing that the entire system can be applied to your tax credit. A battery energy storage system definition is built into the federal credit.
The Battery Energy Storage System Definition
In terms of the law, based on previous solar tax credits, the battery energy storage system definition includes any dedicated solar battery storage device connected to the panels on your rooftop. However, as we’ve seen in previous legislation, the actual battery energy storage system definition is based on specific conditions.
Qualified battery devices should be charged exclusively by the Long Island solar installation. So, you won’t be able to claim on systems where a battery device is charged by the grid or another system, such as a generator.
To clarify, the battery energy storage system definition in the context of the solar tax credit would be any battery storage system charged exclusively by the solar panels on your rooftop.
Is it Worth Getting a Solar Battery for a Long Island Solar Installation?
Most homeowners will gain value from installing a battery system along with a Long Island solar installation.
The battery helps to increase the value of solar power on Long Island in a few ways…
- The solar battery will charge during the day, storing energy to be used when the grid goes down. Without a battery, solar power on Long Island will shut down during a grid outage.
- The battery can deploy in the evenings when rates are at their highest. Instead of importing all of your electricity from the grid, you can use stored energy that was generated from the panels on your rooftop.
- We use smart systems for solar batteries. For your Long Island solar installation, the battery can be configured to work in both scenarios.
A solar battery can save you money by further reducing your reliance on the grid.
A Cost/Benefit Analysis for Solar Power on Long Island
While a solar battery can be beneficial for most homes, you deserve to have detailed information to make the right decision. For solar power on Long Island, we offer cost/benefit analysis after the initial estimate and site survey. This will allow you to see the potential savings over the lifetime of your system.
Solar power on Long Island will dramatically reduce your utility bill; a solar battery could make things even more efficient. But, if a battery isn’t right for your needs, we will be upfront with the data provided. We are in the business of generating savings for our customers. If it doesn’t make sense, we’ll tell you.
Long Island Power Solutions is one of the most trusted solar installation companies in New York. We have installed more than 5,000 systems for commercial and residential customers.
Choose the Expert Team at Long Island Power Solutions
Understanding the battery energy storage system definition and its benefits, you can now start to plan your solar installation. We provide free initial estimates for solar. You can get started online today. We’ll look at your unique needs and the solar potential for your home. With the huge savings of solar, there’s no need to pay the ludicrous electricity rates on Long Island. Give less to the utility company and enjoy your return on investment over time. Long Island Power Solutions is ready to start planning your system today.