Battery Tax Credit
The IRA extended the 30% ITC to standalone battery storage systems installed after January 1, 2023. Previously, batteries only qualified if installed with solar. Capacity must be 3 kWh or more.
Why It Matters
You can now add a battery to an existing solar system — or install a battery without solar — and receive the 30% federal tax credit separately.
Related Tools
Related Terms
Federal Tax Credit (ITC)
Investment Tax Credit allowing homeowners to deduct a percentage of solar installation costs from federal taxes. Currently 30% through 2032.
Battery Storage
A system that stores excess solar energy for use when the sun isn't shining, providing backup power during outages.
IRA (Inflation Reduction Act)
Landmark 2022 federal legislation that extended and expanded clean energy tax credits, including the 30% solar ITC through 2032, and added new incentives for batteries, heat pumps, and EVs.