Federal Storage ITC

On November 19th, the House of Representatives passed the Build Back Better Act (aka Reconciliation) which contains a number of key climate and clean energy provisions, including the investment tax credit (ITC) for standalone storage, which includes a critical direct pay option.

Now, we must continue our outreach and advocacy efforts with the Senate to ensure they consider the House bill and either pass it as-is (not likely), or revise it in an expedited manner and send back to the House a final time. We remain hopeful that all of this can be accomplished and the bill is signed into law sometime in early-to mid-December. In the end, this legislation is critical to realizing a clean, resilient, dynamic, equitable, and smart - what we call the “fast and flexible” - grid for all.

In terms of timing, it is unlikely that the Senate will vote on this package before Thanksgiving. Letting it slide into December does introduce some new complications as that is when the debt limit and government funding deadlines expire. We remain hopeful, though, that progress is being made and the BBB/Reconciliation package will pass before the end of the calendar year.

This page will be updated as more details become available, so please check back often. For specific questions on how the storage ITC might affect your energy storage project, contact Stem using the form below.