April 21, 2021
U.S. Energy Storage Association Statement on Wyden Bill
Includes provisions to makes storage eligible for investment tax credit
WASHINGTON—The U.S. Energy Storage Association (ESA) today offered the following statement on a comprehensive clean energy tax reform bill, the Clean Energy for America Act, introduced by Senate Finance Chairman Ron Wyden (D-Ore.).
“The U.S. Energy Storage Association commends Chairman Wyden for including the Investment Tax Credit for storage in his comprehensive clean energy tax package. Few policies will deploy more energy storage faster across the electric grid than making the ITC available for standalone storage projects. We’ve seen the positive impact of the ITC when it has been made available to other clean energy technologies,” ESA Interim CEO Jason Burwen said. “As Congress debates an infrastructure bill, we will work with members in both chambers, in both parties, and other stakeholders to finally enact the ITC for storage—one of the most important technologies for our economic and climate future.”
During the first quarter of 2021, momentum for the ITC for storage has grown. In March, the president released his American Jobs Plan, which called for the ITC for energy storage. A subsequent report by the Treasury Department also included the ITC for storage, examining its role in increasing reliability of clean energy supply. More than 150 organizations sent a letter to U.S. House and Senate leaders requesting they include bipartisan legislation that would make standalone storage projects eligible for the ITC in the upcoming infrastructure bill.
Sen. Martin Heinrich (D-N.M.), Sen. Susan Collins (R-Maine), Rep. Earl Blumenauer (D-Ore.), Rep. Mike Doyle (D-Pa.) and Rep. Vern Buchanan (R-Fla.) have introduced the bipartisan Energy Storage Tax Incentive and Deployment Act (S. 627 / H.R. 1684) to remove limits on applying the tax credit to storage technologies only when integrated with ITC-eligible solar projects. This legislation is mirrored in the recently introduced GREEN Act (H.R. 848), which includes the option for a direct payment of the ITC in addition to making storage technologies eligible for it.
As outlined in ESA’s 2030 Vision, at least 100 GW of new energy storage is needed to drive the clean energy transition and transform the electric system to handle 21st century demands. The United States has deployed over 3 GW of battery and other advanced energy storage to date.
About The U.S. Energy Storage Association:
The U.S. Energy Storage Association (ESA) is the national trade association dedicated to energy storage, working toward a more resilient, efficient, sustainable and affordable electricity grid – as is uniquely enabled by energy storage. With more than 200 members, ESA represents a diverse group of companies, including independent power producers, electric utilities, energy service companies, financiers, insurers, law firms, installers, manufacturers, component suppliers and integrators involved in deploying energy storage systems around the globe. More information is available at: www.energystorage.org.