Washington Battery Storage Incentives
Available Battery Storage Incentives
Federal Tax Credit
The Federal Investment Tax Credit is now available for 30% of the cost of a battery storage system purchase and installation (including sales tax), providing the owner with sufficient tax liability. Have you already purchased your battery storage system? Learn how to apply for the tax credit below!
Washington Sales Tax Exemption
Battery storage systems powered by solar energy systems can qualify for the sales tax exemption. Otherwise, battery storage-only projects with no existing solar on site cannot be sales tax exempt. More details below!
Time-of-Use Rates Pilot Programs
Time-of-use (TOU) rates are coming to Washington! Although they are just in the beginning phases and are being tested out through pilot programs, TOU rates have big implications for the return on investment for battery storage systems! Learn more about available programs and how batteries can help save you money below!
Battery Storage Federal Tax Credit:
In August of 2022 the Inflation Reduction Act (IRA) passed, extending the Federal Investment Tax Credit (ITC) until the end of 2032 and including standalone battery storage systems as eligible projects! The ITC is now available for 30% of the total cost of purchase and installation (including sales tax) of a solar photovoltaic system, providing the owner has sufficient tax liability. This tax credit is a dollar-for-dollar reduction in taxes owed, usable by individuals or businesses. Consult your tax adviser to learn how this tax policy affects you.
How to apply the Federal ITC
To apply for the Federal Investment Tax Credit for solar energy systems in Washington, use Tax Form 5695. Complete Form 5695 by providing information about your battery storage system and calculating the eligible credit amount (which we provide in every solar energy system proposal). Finally, include the completed Form 5695 when filing your federal income taxes, ensuring accuracy to claim the credit successfully.
Washington Sales Tax Exemption Solar Plus Storage:
Per Washington, WAC 458-20-263 (304)(a), battery storage systems with solar energy as the principal power source qualify for the sales tax exemption. To register the sales tax exemption on your battery project, you need a solar energy system designed and installed to power your battery storage system. We are familiar with such projects and warn you of any unscrupulous salesperson who does not include sales taxes on battery storage-only proposals. Contact us today for a transparent and no-pressure consult on your battery storage project!
Time of Use Pilot Programs in Washington:
Time of Use Pilot Programs in Washington:
Battery storage systems complement time-of-use (TOU) programs by allowing consumers to store excess electricity during off-peak hours when rates are low and then use it during peak hours when rates are higher, maximizing savings. By integrating batteries with TOU programs, consumers can further optimize their energy usage, reduce peak demand on the grid, and potentially lower overall electricity costs.
Puget Sound Energy Incentives
PSE is offering a TOU pilot to a limited number of residential electric customers in a two-year program to study the impacts of shifting energy use times on how they use energy. Open recruitment has ended, but some customers may still enroll in a TOU rate plan. TOU rates offer electric customers the opportunity to save on their monthly bills by shifting energy-intensive appliance usage away from peak periods, typically occurring weekdays from 7 a.m. to 10 a.m. and 5 p.m. to 8 p.m., when demand and costs are highest, while also enjoying lower rates during off-peak periods, weekends, and holidays.
Seattle City Light Incentives
From September 2022, when the Seattle City Council approved City Light’s 2023-2024 rate ordinance, they introduced an optional TOU rate program. The TOU rate launch initially planned for 2024, has been rescheduled for early 2025 to ensure a comprehensive offering, including customer-centric tools, rate education, equity considerations, simplified sign-up processes, and thorough staff training, resulting in a high-quality product and customer experience. More information on City Lights TOU program will become available later in 2024.