U.S. Reps. Mike Thompson (CA-05) and Chris Gibson (NY-19) announced today that they have joined together to introduce H.R. 1465, The Storage Technology for Renewable and Green Energy 2012 Act (STORAGE) in the United States House of Representatives. The STORAGE Act would provide a tax credit to individuals and businesses when they invest in energy storage systems. Energy storage systems allow businesses and consumers to store excess generated energy then use that energy during periods of peak demand. This helps reduce consumers' electricity bills, greatly enhances the reliability of alternative energy sources, and makes our electric grid more efficient and secure.
"When it comes to addressing American's energy challenges, we need an all the above approach," said Thompson. "The wind doesn't blow 24 hours a day and the sun doesn't shine 24 hours a day. By providing these tax credits we can incentivize investments in storage systems that collect and save energy for use during peak times. This will save folks money and make our power grid more secure."
Businesses and individuals would both be eligible for tax credits under the STORAGE Act. Businesses and factories that generate energy via large compressed air systems, flywheels, and large arrays of fuels cells and 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.
The tax credits would also help improve our alternative energy infrastructure. The current alternative energy electricity infrastructure is highly inefficient. Right now, alternative energy sources are often shut down if the energy cannot be used immediately. Energy storage systems can help fix this problem by storing energy temporarily and delivering it when it is needed. Energy storage systems also help cope with peak demand. By allowing consumers to store energy, rather than draw on the system during peak demand time, it can reduce the number of power plants that are needed.