Do Batteries Qualify for the Solar Tax Credit?

If you’re interested in going solar in Humboldt or Del Norte counties, now is the time thanks to the solar tax credit. Homeowners and businesses alike have access to significant savings with this federal solar incentive, making it easier and more affordable than ever to make the switch to renewable energy. But as many Northern Californians know, battery storage is becoming essential for reliable power in a world of regular power outages and record breaking electricity rates. 

Luckily, solar battery backup is eligible for the solar tax credit as well—here’s everything you need to know:

How the Solar Tax Credit Works

Officially known as the Investment Tax Credit (ITC), the solar tax credit is a federal solar incentive that reduces the taxes you owe for the year your system is installed. In 2024, the ITC is worth 30% of the total cost of your solar installation. It is available at this rate until 2032, when it gradually reduces until it expires in 2035. Most expenses involved with solar installation are eligible for the solar tax credit, including panels, wiring, labor, permitting, and battery storage. In order to qualify, solar batteries must meet a minimum capacity rating of 3 kWh.

The Investment Tax Credit is available for both residential and commercial solar installations (even tax-exempt businesses!), and to qualify you must:

  • Install solar on your home or business located in the United States
  • Own your solar panels (solar leases & PPAs do not qualify)
  • Install new or previously unused equipment
  • Have a taxable income (for homeowners)

Maximize Your Solar Potential with Battery Backup

Battery storage allows you to store the excess electricity that your panels generate for use at night or cloudy days. While solar batteries are crucial for off-grid solar energy systems, they also offer several benefits for those connected to the electric grid, including:

  • Reliable Backup Power – Solar batteries can protect you from losing power in the event of a grid outage, PSPS event, or blackout.
  • Net Metering Optimization – With battery backup, you’ll be able to switch to using stored electricity during peak hours to avoid costly TOU rates. 
  • Reduced Carbon Footprint – Most of the grid’s electricity still comes from fossil fuels, and battery storage allows you to use more clean, renewable energy in your home or business.
  • Energy Independence – By generating and storing your electricity, you won’t need to rely on the grid, or its fluctuating rates.   

Six Rivers Solar: Leading the North Coast in Renewable Energy Since 1980

Six Rivers Solar is a trusted local solar installer offering over 40 years of experience in sustainability throughout the Redwood Curtain. We offer custom solar solutions for homes and businesses of all sizes and we’re firm believers in the benefits of battery storage. Our team only installs industry leading solar products, like:

  • Tesla Powerwall – With easy monitoring through the Tesla app, a high-storage capacity, and sleek design, Tesla Powerwall can seamlessly integrate with any residential or commercial solar energy system.
  • FranklinWH – A full energy management system that can control and monitor multiple sources such as the grid, solar panels, battery storage, and even generators. The Franklin Home Power System is ideal for off-grid solar installations.
  • Briggs & Straton – An easily installed battery storage system with flexibility features, including stackable design, rated for indoor & outdoor use, and tough safety standards. 

Schedule a free battery storage consultation with our team today. Call 707-443-5652 or contact us online today.