The federal solar tax credit (also known as the investment tax credit) is a dollar-for-dollar credit that reduces what you owe in federal taxes by 30% of your solar installation costs for the year you install your system.
The solar tax credit was recently expanded by the Inflation Reduction Act of 2022. The new Inflation Reduction Act solar tax credit covers both solar panels and battery storage.
To be eligible for the solar battery tax credit, batteries must have a capacity rating of 3 kilowatt-hours (kWh) or greater. Most standard home batteries meet this requirement.
Don’t Miss: How to Claim the Solar Tax Credit in 2023 Step-by-Step
In addition to expanding the tax credit for solar and battery storage, the Inflation Reduction Act also added new provisions. Most importantly, solar batteries don’t have to be charged exclusively by solar panels to qualify for the tax credit—they can also charge from the grid.
Grid charging isn’t always necessary, but it comes in handy when severe weather is predicted. If a storm is coming and the sun is down, you can use grid power to make sure your battery has a full charge in case of an outage.
With extreme weather, grid outages, and expensive energy costs becoming the norm in Texas, home backup power is more important than ever. Solar batteries are an excellent option for backup power that can bring you closer to energy independence.
Solar batteries store the excess power your home solar panels generate during the day so you can use it when your solar panels are not producing electricity. They also allow your solar system to disconnect from the grid during a power outage so you can continue generating power.
Benefits of solar batteries include:
- Protection against rolling blackouts and outages
- Lower electricity bills
- Greater energy independence
- Cleaner energy for your home
ERCOT—which provides electricity to more than 26 million customers in Texas—is anticipating rolling brownouts this summer. According to Public Utility Commission Chair Peter Lake, Texas’ main power grid is at risk of outages this summer if wind turbines aren’t able to meet demand.
Don’t get stuck in the dark! Install a solar battery now. Rolling blackouts and brownouts, also known as rotating outages, last about 10-45 minutes on average. A fully charged solar battery will have no problem keeping your essentials running for that amount of time.
If you want to get away from unreliable and expensive grid electricity, solar panels and batteries are the way to do it. With solar panels and a residential solar battery bank, you’ll have a personal power plant on your roof and won’t be at the mercy of your utility company.
Texas Engineered Solar is a Texas-based, veteran-owned solar company in San Antonio. Our team lives and works in San Antonio, and we know what works for Texas homes. If you’re ready to take control and provide reliable power for your family, give us a call. We can help you save with the federal solar tax credit and additional Texas solar incentives.
