Are Solar Battery Storages Eligible for Tax Credits?
Making Solar Battery Storage More Accessible Through Tax Credits
Owning a battery storage system paired with your solar panels, whether for residential or commercial purposes, grants you the freedom to access electricity round-the-clock, even during those periods when your solar system is off-grid. While such systems can potentially come with high upfront costs, the good news is that federal solar tax credits are here to ease that financial burden considerably, paving the way for more affordable solar panel and battery storage setups.
At Energy Solution Providers, we have solidified our reputation as a dependable local authority in solar energy, having successfully completed over 1,400 solar installations across Arizona, including in Pinal, Pima, and Maricopa counties. Our commitment to the community goes beyond just providing solar solutions; we are here to ensure you seize every opportunity to save big with solar energy, keeping you informed on all the latest solar incentives available in the state.
Harness Tax Credits for Your Solar Battery Installations
Thanks to the groundbreaking Inflation Reduction Act enacted in 2022, the scope of solar tax credits has been widened to incorporate both solar panel installations and battery storage for residential properties. Commonly known as the Investment Tax Credit (ITC), this initiative allows you to diminish your federal tax liability by a staggering 30% of your overall expenditure for the installation of solar panels or batteries. Remarkably, battery storage systems are eligible for this tax credit even in the absence of a solar panel installation.
One of the standout features of the solar battery tax credit is that there’s no ceiling limit, offering expansive financial relief. To avail of this benefit, ensure you hold ownership of your property and the solar system, coupled with a taxable income. If your tax credit overshoots the amount you owe in taxes, rest easy knowing the surplus will be carried forward to the subsequent year.
Unlock Additional Savings with Commercial Battery Storage Incentives
Business entities are not left behind; the ITC extends to commercial solar apparatus and battery storages, pledging the same 30% reduction in tax liability. Additionally, entrepreneurs can tap into another lucrative opportunity, the Production Tax Credit, which is pegged on the quantity of electricity your solar setup generates over the initial decade of operation.
Notably, utilizing both tax credits for a single property is generally not permissible; however, there’s a window to layer these credits for different but simultaneous solar products. For nuanced guidance on selecting the best tax credit alternative for your enterprise, we advise consulting with your tax expert.
Why Should You Consider Battery Backup?
Opting for battery storage comes with a bounty of perks including:
- Ensuring power availability during outages
- Enabling a continuous supply of renewable energy
- Enhanced utility of the electricity generated by your panels
- Fortifying your energy self-sufficiency away from the grid
- Diminishing dependence on non-renewable energy sources
Partner with Energy Solution Providers: Your Trusted Arizona Solar Technicians
With a rich history spanning over 21 years, we are at the forefront of steering Arizona toward a future powered by clean, renewable energy. Our portfolio boasts meticulously crafted solar panel systems, underpinned by top-grade solar products. Our team stands ready to either equip you with a brand-new solar plus storage system or upgrade your existing solar setup with a battery backup. Reach out to us to take a decisive step towards a greener future.
Embark on Your Solar Battery Backup Journey Today. Dial 866-371-9452 or Contact Us Online.
