Incentives for Battery Storage

Federal Incentives

If you already have solar energy or when you get a solar system at the same time as your battery, the purchase and installation of solar-connected battery backup is eligible for the Federal Income Tax Credit (26% when installed 2021-2022, lower percentage if installed after 2022). This incentive applies to residential and small commercial projects.

State Incentives

Purchase and installation on the solar system is state sales tax exempt when the system size is less than 100 KW, but you will have to pay sales tax on the battery backup system.

In the past, and possibly again in the future, the WA Dept of Commerce offers Clean Energy Fund grants for designing and learning from energy storage.

Utility Incentives

Clean electricity from your battery is intended for self-consumption. You are not allowed to send battery power to the grid for net metering credits as you do with solar electricity. You may disconnect your site from the grid and utilize battery power as an alternative to paying for electricity. This is particularly useful in areas of the country where the utilities charge a time of use rate, but that is not true today in Washington.

Your utility may offer some type of incentive if you allow them to draw on your whole house battery or on your electric vehicle battery. Check with your utility to see what they offer.

Most utilities today offer incentives to help you reduce your consumption and save money. When your home or commercial property uses less gas, electricity or water, your utility benefits because they need to procure less of these valuable natural resources. Each utility is different. Many offer rebates when you switch to a ductless heat pump or a ducted heat pump, ductless hot water heater, more efficient furnace or other heat source. Check with your utility to find out what they offer, and then contact Northwest Electric and Solar for a bid to get the electrical work done safely, by the code, and on time. Use the Feedback Form if your project doesn’t fit the other categories.

Snohomish PUD has engaged in research into the utilization of battery storage at the grid level and has a new battery storage system at the new Arlington microgrid.

Learn about PSE’s battery storage projects and what they are testing, and learn about how they view batteries for homes, commercial sites and industry.