There are a number of new pieces of storage legislation making their way through the political process that will would treat storage technology in a similar fashion as renewable energy technologies because of the positive impact that it would have with regard to grid stabilization. As we are out talking to utilities and regulators across the country it is becoming clear to us that the electric industry is starting to put a real value on storage technologies which should bode well for all companies in the energy storage value chain. Below is a summary of one of the most directly related pieces of proposed legislation. The US Chamber of Commerce is showing strong support because storage technologies have the potential to cut some business energy costs in half by eliminating the demand charges. This is a direct application of the Silent Power OnDemand Energy Appliance.
US CHAMBER OF COMMERCE Supports Proposition of The Storage Technology of Renewable and Green Energy Act of 2009
FAIR LAWN, N.J.–(Business Wire)– The US CHAMBER OF COMMERCE today announced that it fully supports The Storage Technology of Renewable and Green Energy Act of 2009 (STORAGE) – Bill #S1091. The STORAGE bill, recently introduced by Senator Ron Wyden, addresses the overlooked issue of storing renewable energy. Renewable energy is not always available and is usually created during non-peak demand periods. Storage of renewable energy would allow the energy to be used during peak energy usage periods. The need for an investment tax credit for energy storage facilities and equipment is a necessity to shift the demands on the grid.
Under current law, tax credits are available for the generation of renewable energy, but not its storage. The STORAGE Bill would provide an investment tax credit for storage systems that require similar innovations and incentives as other energy technologies. Storage systems consist of a broad range of technologies, from water reservoirs, batteries and flywheels to thermal cooling systems.
“Energy storage is an often overlooked technology that could save millions of dollars in energy costs and help make renewable fuels viable options to replace oil and coal,” Senator Wyden said. “It just makes sense to store energy when it`s plentiful and draw it down when it`s needed. The STORAGE bill provides tax incentives for implementing these technologies and will create a market demand for energy storage technologies. I thank the US CHAMBER OF COMMERCE for supporting this legislation.”
One particular tax credit within the bill aims to provide a 30 percent investment tax credit for on-site use in individual homes, businesses and factories. This legislation will help pay for smart-grid devices to manage the charging and storage of the electricity. Building owners could use the tax credit to help finance thermal cooling systems, which will make ice at night when electricity is cheaper and use the ice to cool the building during the day.
“US CHAMBER OF COMMERCE supports this bill 100 percent. Previously, energy storage has been overlooked as a reliable and cost-saving solution for buildings. But energy storage, both in buildings or on the grid, is a critical element in the large scale implementation of renewable forms of energy,” said the CEO of the US CHAMBER OF COMMERCE. “This proposed tax credit would not only help building managers save on operational costs, but it would also significantly reduce the demand on the grid.”