Does Battery Storage with Solar Qualify for the Tax Credit?
Many homeowners who invest in solar panels are also considering adding battery storage to their system. One common question that arises is whether battery storage with solar qualifies for the federal solar tax credit. The answer is yes, in many cases, it does.
Understanding the Federal Solar Tax Credit
The federal solar Investment Tax Credit (ITC) allows homeowners and businesses to deduct a portion of the cost of installing a solar energy system from their federal taxes. This tax credit has been a key driver in the growth of solar installations across the United States.
How Battery Storage Qualifies
In 2018, the IRS issued a guidance clarifying that in many cases, battery storage systems can qualify for the federal tax credit when paired with a solar energy system. To be eligible, the battery must be charged at least 75% by the solar panels. This means that the battery is primarily charged by the solar system, and not from the grid.
Other Eligibility Requirements
In addition to being primarily charged by the solar system, the battery must also meet all other eligibility requirements for the federal solar tax credit. This includes being installed at a taxpayer’s primary or secondary residence in the United States, and meeting all relevant fire and electrical code requirements.
Consult with a Tax Professional
It’s important to note that tax laws and regulations can be complex and may vary based on individual circumstances. Therefore, homeowners considering adding battery storage to their solar system should consult with a qualified tax professional to ensure they meet all eligibility requirements for the federal solar tax credit.
Conclusion
Battery storage paired with solar energy systems can qualify for the federal solar tax credit in many cases, as long as the battery is primarily charged by the solar panels. Homeowners interested in taking advantage of this tax credit should consult with a tax professional to ensure they meet all eligibility requirements.
By understanding the eligibility requirements and seeking professional guidance, homeowners can make informed decisions about adding battery storage to their solar systems while also taking advantage of the tax benefits.
