November 18, 2021

Why is a tax credit for storage one of the key policies to reach our decarbonization goals?

Ismario Gonzalez - VP of Energy Storage and Integration, Blue Ridge Power

This is a guest blog post from Blue Ridge Power. Connect with Blue Ridge Power at #ESACon21 in Phoenix, AZ, December 1-3.

The Biden Administration has recently released data detailing how solar energy could account for 40% of the nation’s electricity by 2035.   We’re hopeful pending federal legislation will help establish a clear pathway for meeting these solar targets, and the Administration’s goal to reduce 50% of economy-wide greenhouse gas emissions by 2030.

Ultimately, we need policy certainty from the federal government in order to continue growing our industry in order to meet increasing clean energy demand from utilities, corporate customers, and institutional investors. Blue Ridge believes it is a necessity to pair solar with storage and to build standalone storage systems to ensure this energy transition is reliable and affordable.

Blue Ridge Power has been active in supporting the standalone energy storage investment tax credits, which we believe are fundamental to the proliferation of the renewable energy industry. We are confident that Congress supports the inclusion of these provisions as a key element of the nation’s transition to cleaner energy resources.

As we look at how to meet the needs of the market, we are advancing storage plus renewable projects by innovating our processes, standardizing solutions and selecting technologies that best fit to solve the energy needs of our customers while increasing the successful deployment of our projects.

A few of the ways solar and storage are meeting these needs include:

  • Accelerating decarbonization to reach our net zero goal by 2050.
  • Increased coupling of clean renewable energy with energy storage projects to reduce intermittency.
  • Time shifting of solar energy, making solar energy available in evening hours.
  • Increase grid efficiency and reliability.
  • Lower energy costs to the consumer.

A long-term government initiative to support American manufacturing, such as the Energy Storage Tax Incentive and Deployment Act (S. 627 / H.R. 1648), would reduce the reliance on foreign suppliers and alleviate supply chain constraints, further allowing the technology to reach greater economies of scale.

While the standalone ITC is important to boost the energy storage market, other policy initiatives are also key to further growing storage across the country. Reducing soft costs by streamlining permitting, interconnection restrictions and complexity will also boost and support a sustainable energy storage market and industry with a “Made in America” supply chain.

Dependance on organic growth alone will not satisfy our overall objectives as an industry or create a less fossil dependent society and country. By enacting a standalone storage ITC, extending the solar ITC, and streamlining storage permitting, the market will rapidly scale and allow for more clean energy to connect to the grid and reach the Biden Administration’s decarbonizations goals.

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