Energy storage tax credit will boost green economy
While a federal “Green New Deal” will be challenging to implement, New York is moving full speed ahead by passing legislation aimed at transforming its energy sector to the clean economy of the future. However, there is one piece of bipartisan legislation Congress has a shot at passing that will ensure New York can meet its ambitious clean energy targets: a storage investment tax credit.
Already in New York, the solar and wind industry supports over 10,000 jobs, represents billions of dollars of investments, and provides tens of millions of dollars in state and local taxes — allowing upstate New York communities to thrive.
As New York deploys more and more renewable energy, an understandable question people have is, “What happens when the sun doesn’t shine or the wind doesn’t blow?” That question has been answered thanks to the evolution of energy storage technologies, often in the form of large batteries directly connected to the electric grid. By storing the electricity that’s generated and saving it until it’s needed, energy storage is aiding in the expansion of low- cost renewable energy and playing a critical role in modernizing the electric grid.
Here is where the federal government comes in. The U. S. government supported the natural gas industry for nearly 30 years through a federal tax credit, allowing for the technology to improve and placing the U. S. as the global leader in natural gas production, ultimately reducing our export deficit. Currently, energy storage is eligible for the federal investment tax credit only when paired with a solar energy project. Expanding the credit to cover standalone energy storage projects would save businesses and households money as the state pursues ambitious clean energy targets, all while creating more jobs and investments in this innovative industry. The bipartisan bill to expand the credit, known as the Energy Storage Tax Incentive and Deployment Act, is supported by Republicans and Democrats in both houses of Congress.
Our company, Key Capture Energy, is working to advance our portfolio of utility- scale battery storage projects throughout New York. Last year, we relo
cated our headquarters to downtown Albany with support from the state’s START- UP NY program working in cooperation with the University at Albany. We are pleased to support the expansion of New York’s clean energy workforce by hiring from the state university system and giving extra consideration to New York state- based suppliers and service companies.
A federal ITC would green- light New York’s clean energy economy, making the state a national leader in the fast- growing field of energy storage. Companies like ours could continue to build energy storage projects that meet the needs of the electric grid while providing significant value to New York consumers.