Do solar backup batteries qualify for the solar tax credit?

Yes! Thanks to the Residential Clean Energy Credit, you can get a solar battery tax credit in 2023 for up to 30% of the value of any qualifying solar battery storage system. When the Inflation Reduction Act was passed in 2022, the credit amount went from 26% to 30%. That means there’s never been a better time to let these federal tax credits help you get a great new solar energy storage system with a solar backup battery.

What solar battery backups are eligible?

Enphase solar battery backupJust about any professionally installed solar battery will qualify for the Residential Clean Energy Credit. The technical requirements are that a battery must have at least 3 kWh of capacity and be connected to a home’s energy system.(1) For example, the Enphase IQ 10TM Battery system, one of our favorite solar batteries, has a 10 kWh capacity ― more than triple the minimum requirement.

Also, the system must be installed in a residence in the United States, and the owner must be a taxpayer to qualify for the tax credit for solar battery storage. The good news is that the home doesn’t even have to be a primary residence. So, that vacation beach house with lots of sun can go solar and still qualify for a solar battery tax credit in 2023.

Read More: Enphase Battery vs Tesla Powerwall 2

Are standalone backup batteries eligible for solar tax credit?

Yes, as of 2023, the Residential Clean Energy Credit applies to whole home battery backup systems, regardless of whether they are attached to a solar energy system or not.(2)

That means even if you don’t want clean solar energy powering your home, you can still install a battery to keep some basic appliances running during a power outage.

What about adding a solar battery backup to an existing system?

Even if you’ve received a credit for a solar energy system in a previous year, you can still retrofit a solar backup battery into your existing system and receive the 30% tax credit for solar battery storage.

What if I already claimed the solar tax credit?

Under the 2022 Inflation Reduction Act, the IRS will allow you to claim a residential tax credit of 30% for a new solar backup battery even if you have already benefited from a credit for a solar energy system. So, now is the perfect time to upgrade your system.(3)

Let ADT Solar help you keep the power on

A solar battery backup is a great way to protect yourself from storms and other power outages. And with new incentives from the federal government, a solar energy system with a backup battery is more affordable than ever.

Nothing is better than the confidence that comes with knowing your home is safe. Contact a Solar Energy Specialist today to find out all the benefits of protecting your home from outages with a solar backup battery.

 

HOME BATTERY BACKUP QUOTE

Disclaimer: This webpage provides an overview and does not constitute professional tax advice or other professional financial guidance. It should not be used as the only source of information when making purchasing decisions, investment decisions, or tax decisions, or when executing other binding agreements.
*Tax and credits or incentives including those provided by federal, state, or local governments may change or end. This can impact the amount of money you might save. Consult a tax professional to understand any tax liability or eligibility for any tax credits that may result from the purchase of your solar system.
**If you have taxable income and own the system, you may qualify for the federal investment tax credit (ITC). It is your responsibility to determine your eligibility and to apply. Consult a qualified tax professional for assistance and details.
Sources
  1. Inflation Reduction Act of 2022, U.S. Senate

     

  2. IRA sets the stage for US energy storage to thrive, Utility Dive

     

  3. Federal Solar Tax Credit Guide for Homeowners, Marketwatch