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Standalone Battery Storage ITC (48E)
Grantya researchSee programDeadline: BOC by 2033-12-31 for full 30%; phase-down 75%/50%/0% in 2034/2035/2036.
Federal 30% Investment Tax Credit for STANDALONE battery storage systems (kWh capacity ≥3 kWh) under IRC Section 48E. UNAFFECTED by the OBBBA wind/solar cliff — full eligibility for Begin Construction (BOC) through Dec 31, 2033, then phase-down 75% (2034), 50% (2035), 0% (2036+). Both BOC methods remain available for storage: Physical Work Test 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" applies: non-PFE-sourced inputs must reach 55% for BOC in 2026, 60% in 2027, 75% by 2030+. Retains 5-year MACRS + permanent 100% bonus depreciation under §168(k). Stackable with utility storage rebates (IL DG Rebate $300/kWh) and state programs.
Program details
- Full Name
- Section 48E Clean Electricity ITC — Standalone Energy Storage
- Type
- federal
- Client Type
- commercial
- Project Types
- battery_storage
- Funding Percentage
- 30%
- 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 for 30% (no PWA requirement) | Systems >1 MW: 6% base, 30% with prevailing wage + apprenticeship | FEOC sourcing diligence required for batteries (Chinese-sourced cells typically disqualifying for 2026+ BOC)
- Status
- open
- Deadline
- BOC by 2033-12-31 for full 30%; phase-down 75%/50%/0% in 2034/2035/2036.
- Stackable With
- il_storage_dg_rebate, illinois_shines, il_cpace, comed_smart_ideas_commercial, macrs_solar_depreciation, federal_itc_solar, section_48e
- 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 plenty of runway. EVLV should lead with this when a client mentions resilience, demand charges, time-of-use arbitrage, or wants to add storage to an older solar array. Pair with IL DG Storage Rebate ($300/kWh) for maximum stack.
Source: Grantya research. Confirm current terms with the administering agency before applying.