← All states
Clean Electricity Investment Credit — Standalone Storage (Section 48E)
IRS / U.S. TreasurySee programDeadline: BOC by Dec 31, 2033 for full 30% ITC; phase-down 75% (2034), 50% (2035), 0% (2036+). UNAFFECTED by OBBBA wind/solar cliff.
Federal 30% Investment Tax Credit for STANDALONE battery storage (≥3 kWh) under IRC Section 48E. UNAFFECTED by the OBBBA wind/solar binary cliff — full eligibility for BOC through Dec 31, 2033, then phase-down 75% (2034), 50% (2035), 0% (2036+). Both BOC methods remain available for storage: Physical Work Test (any size) AND 5% Safe Harbor (storage was not narrowed by IRS Notice 2025-42, which only restricted the 5% safe harbor for solar/wind). FEOC "material assistance cost ratio": non-PFE-sourced inputs must reach 55% for BOC in 2026, 60% in 2027, 75% by 2030+ — diligence battery cell sourcing carefully. Retains 5-year MACRS + permanent 100% bonus depreciation under §168(k) and OBBBA §70301. Stackable with ComEd/Ameren IL DG Storage Rebate ($300/kWh upfront).
Program details
- Agency
- IRS / U.S. Treasury
- Level
- Federal
- Category
- Solar / Clean Electricity / Storage
- Eligibility
- Standalone battery storage (need not be paired with solar); minimum 3 kWh capacity; BOC by Dec 31, 2033 for full 30% credit. Systems ≤1 MW auto-qualify; >1 MW require prevailing wage + apprenticeship for the full rate. FEOC sourcing diligence required for batteries (Chinese-sourced cells typically disqualifying for 2026+ BOC).
- Funding Amount
- 30% base ITC on installed cost for standalone battery storage (≥3 kWh). Systems ≤1 MW auto-qualify for 30% (no PWA); >1 MW: 6% base, 30% with prevailing wage + apprenticeship. Bonus adders (energy community / domestic content / low-income) can raise the credit further.
- Deadline
- BOC by Dec 31, 2033 for full 30% ITC; phase-down 75% (2034), 50% (2035), 0% (2036+). UNAFFECTED by OBBBA wind/solar cliff.
- Status
- open
- Project Types
- battery_storage, solar
- Client Types
- commercial
- Notes
- Critical clarification for clients confused by the OBBBA news: standalone storage was NOT subject to the wind/solar cliff. A storage-only project (or storage added to an existing PV) still has runway through 2033 BOC. Lead with this when a client mentions resilience, demand charges, or time-of-use arbitrage. Pair with IL DG Storage Rebate ($300/kWh) for maximum stack.
Source: Grantya research. Confirm current terms with the administering agency before applying.