Sens. Jeff Bingaman, D-N.M.; Ron Wyden, D-Ore.; and Jeanne Shaheen, D-N.H., have introduced legislation to offer tax credits for the creation of renewable energy storage.
The Storage Technology of Renewable and Green Energy Act of 2010 (STORAGE 2010) would offer up to $1.5 billion in tax credits to storage projects that are connected to the U.S. electric grid. Increasing energy-storage capacity would help promote intermittent energy sources, such as wind and solar power, while reducing energy demands during peak hours and contributing to an overall more reliable smart grid, according to the senators.
‘Expanding our storage capacity will improve the efficiency, flexibility and reliability of our electric grid, allowing us to wring the most power out of it, while adding large amounts of new renewable energy resources like wind and solar,’ says Bingaman, who chairs the Senate Energy and Natural Resources Committee and who is a member of the Senate Finance Committee. ‘In addition, these incentives will make technologies to store renewable energy more affordable for businesses and homes, which could help dramatically cut their electricity bills and reduce pollution.’
The STORAGE 2010 Act offers a tax credit for three categories of energy-storage facilities that temporarily store energy for delivery or for use at a later time. It will also provide tax credits to businesses and homeowners who install energy storage on their own property to help serve their own energy needs more efficiently or capture energy from on-site renewable energy generation.
The STORAGE 2010 Act will provide a 20% tax credit of up to $30 million for storage systems connected to the electric grid. The bill will also provide a 30% tax credit of up to $1 million to businesses and a 30% tax credit for homeowners for on-site storage projects. The bill is technology neutral and will offer a broad range of incentives to foster innovation and installation of energy-storage technology.
SOURCE: Office of Sen. Jeff Bingaman