Storage
Energy storage systems become more popular every day as homeowners and business owners look to get even more value from their solar energy systems, as well as backup power during outages.
About Solar Energy Storage Technology
Solar energy storage systems are compact systems typically installed in a home’s garage or basement. Commercial solar energy storage systems are often installed outside.
Like solar panels, the technology behind solar energy storage is remarkably simple. Lithium-ion batteries—the same ones that power everything from cell phones to electric cars—are the main element in a solar energy storage system. Lithium ions can absorb and discharge power, making them rechargeable.
Lithium-ion is the battery of choice for energy storage because the technology is proven, safe and affordable. The batteries don’t take a lot of space, and they’re easy to procure.
Incentives for Installing Solar Energy Storage
Homeowners and business owners who install solar energy storage systems typically qualify for the federal Investment Tax Credit (ITC), which in 2020 covers 26 percent of the system’s price. Some solar energy storage systems qualify for a Self-Generation Incentive Program (“SGIP”) rebate in California. And commercial solar energy systems typically qualify for bonus depreciation.