The Real Deal With Battery Rebates
Battery installation rebates are a great way to back up your solar panels for true energy independence. As of Jan 1, 2023, battery rebates are available through 2032. Here’s a breakdown of what you might be eligible for:
Battery Incentives and Rebates
Federal Tax Credit
There’s been a federal tax credit, the Residential Clean Energy Credit, on solar and solar battery projects since 2006. In 2023, this tax credit rose to 30% of the cost of your solar project after being at 26% for the past several years.
How it works:
Complete your battery project and pay your full invoice. You can enter 30% of that invoice amount on IRS Form 5695 the next time you file your taxes. If you have income and therefore owe taxes on that income, this amount will be reduced from the total taxes you owe. If income taxes are regularly taken out of your paycheck, you will likely receive a tax refund from this credit.
Montana
Montana does not offer any state-specific battery installation incentives and rebates. However, Montanians can take advantage of the Federal Tax Incentives (see above).
Colorado
Colorado offers a 10% tax credit for battery installations on the cost of battery equipment.
How it works:
You must use form DR 1307 to document that all the required conditions for claiming the credit have been met. Unless the credit is assigned, the form must be filed with your Colorado income tax return. If the credit is assigned, the amount allowed that exceeds the assignee’s income tax due is refunded to the assignee. However, if the credit is not assigned, the amount of the credit that exceeds your income tax owing is not refunded to you and may not be carried forward to any future years’ income tax due.
City of Denver
City of Denver residents are eligible for a cash rebate for 80% of the cost of their battery installation, up to $500. This cap increases to $2,750 if they also install or already have heat pumps (we do those, too!).
How it works:
Your contractor must be registered with the City of Denver rebates program (we are!) and will apply for your rebates on your behalf.
Xcel Energy
If you live in Denver or Boulder, your utility provider is likely Xcel Energy. They are also offering an upfront cash rebate on interconnecting your battery with the grid to the tune of $500 per kW of battery storage capacity. It’s a pretty cool idea: during periods of peak power demand (like when all the ACs are running in the middle of a hot day), Xcel can tap into the stored energy in your battery to reduce stress on the grid. They’ll never take more than 60% of your battery capacity. Science!
How it works:
Your solar battery installer (hopefully us) will submit an interconnection application request on your behalf for the Renewable Battery Connect program. We’ll then guide you through the process.
City of Fort Collins
Customers of the City of Fort Collins Utilities can receive a cash rebate of $200/kW up to $3,000 on a battery installation.
How it works:
You must be a Fort Collins Utilities residential electric customer proposing a compatible battery storage system permanently connected to the Fort Collins Utilities distribution grid. The battery system must also remain connected to the internet. You must meet the eligibility and interconnection requirements of the Residential Solar Rebate Program. You can use the PowerClerk application platform to add one or more batteries to an existing or new solar PV system installation. Incentives are available for new battery system installations only. Installation incentives are subject to program participation and availability of funds annually. You must apply by November 30 of that calendar year to reserve incentive funding. The battery system must be programmed to store surplus solar energy to meet site loads or optimized to the Time-of-Day rate structure.
Wow, that’s a lot. We know this is complicated, and we’re happy to help! Please get in touch with sales@solarips.com to get your rebate questions answered and your home electrification project started!