June 3, 2016 | By Barbara Vergetis Lundin

As the electrical grid is modernized and more renewable energy sources come online, the next wave is energy storage, which will allow residential and commercial consumers to stabilize utility costs, while providing consistent power, even during outages or brownouts.

With that in mind, U.S. Rep. Mike Honda (D-Silicon Valley, CA) recently introduced HR 5350, the bipartisan Energy Storage for Grid Resilience and Modernization Act. The legislation will provide the same tax credit that renewable energy installations get, for those companies and homes that install energy storage facilities.

"We must create better infrastructure in our nation, including our electrical grid," said Honda. "Tax credits will help create a market-based solution to increase the use of both energy storage and renewable energy. This legislation will help America become energy independent and help create good, family-wage jobs in a sustainable industry."

Energy storage systems allow businesses and consumers to keep excess energy generated when energy is in low demand and then use it during periods of peak demand, reducing consumers' electricity bills and greatly enhancing the reliability of alternative energy sources.

HR 5350 will clarify the tax code by making it explicit that both businesses and individuals would be eligible for tax credits.  Businesses and factories that generate energy through batteries would be eligible for a 30 percent tax credit.  Households and businesses that purchase energy storage systems for their property would also be eligible for a 30 percent tax credit.

Battery energy storage is a transformational technology capable of changing the energy landscape. While battery storage systems are widely recognized as facilitating wider use of renewable power, they offer a range of benefits to the grid, including providing reliability and resilience during times of peak demand and extreme weather. 

The legislation is also supported by numerous industry groups, including the Energy Storage Association, the National Hydropower Association, Enphase Energy, STEM Inc., Green Charge Networks and Imergy Power Systems.

"The Energy Storage Act of 2016 ensures that all types of advanced energy storage systems have increased access to investment capital and can be deployed competitively either as a standalone resource or integrated into a microgrid or renewable energy system," said Energy Storage Association Executive Director Matt Roberts.

The Energy Storage for Grid Resilience and Modernization Act has been assigned to the Committee on Ways and Means for a hearing and markup before it is voted on by the entire House of Representatives.

For more:
- see the bill