Recently, President Biden posted on Instagram that thanks to the Inflation Reduction Act, taxpayers can receive up to 30% off the cost of standalone batteries and installation. Seeing as how we are in the business of batteries here at Dragonfly Energy, we take a deep dive. What does this tax credit mean and how can it benefit your family?
What is the Inflation Reduction Act?
The Inflation Reduction Act is an aggressive action to combat the climate crisis, present, and future, by lowering energy costs. It also makes urgent investments to reduce the cost of prescription drugs and healthcare for taxpayers. The bolstered tax credits will incentivize consumers to buy electric cars, electric HVAC systems, and other forms of cleaner energy. The goal is to thrust us towards a future focused on renewable energy.
However, this will put a significant strain on the power grid and is trading one problem for another without reliable renewable energy storage systems. The first line of defense for you and your family is a standalone battery system in your home.
Who Benefits From the Inflation Reduction Act and Incentives?
Everyone from families to small businesses will benefit from the 30% clean energy tax credit through the Inflation Reduction Act. The credit differs from last year’s structure. You no longer need to have solar to apply the credit to a battery or energy storage system. Homeowners are now able to apply for the 30% tax credit simply for a standalone battery and installation. Interested in other clean energy tax benefits that may apply to your family? Check them out here.
Small businesses can receive a tax credit for switching to low-cost solar power or a standalone battery. Installing solar and/or a standalone battery at a business will lower operating costs, and protect against volatile energy prices.
The Inflation Reduction Act will also maintain lower healthcare costs for small businesses, as well as bolster supply chain resiliency.
What Else Does the Inflation Reduction Act Do for Green Energy?
The Inflation Reduction Act will support local clean energy economics by creating new clean energy and sustainability initiative. These changes will happen on federal and local levels. It will seed state and local energy financing institutions, supporting the deployment of distributed zero-emission technologies like heat pumps, community solar, and EV charging. In addition, the initiative will expand opportunities for clean energy entrepreneurship while prioritizing over 50% of its investments in disadvantaged communities. Investing money into forest and coastal restoration will also be prioritized.
What Do I need to Do to Qualify for the Clean Energy Tax Credit?
To qualify for this clean energy tax credit, a home must be used as a residence by the United States taxpayer. As stated above, standalone battery systems qualify for the 30% residential clean energy credit. The capacity of a battery for home energy storage must be no less than 3 kilowatt hours.
Most home batteries have between 5 and 8 kilowatts of power, so you shouldn’t have a problem meeting this requirement.
Solar.com shares, “Through Time-of-Use (TOU) rates, the price of electricity changes throughout the day and can be significantly more expensive during peak demand (typically morning and evening). In some instances, the price difference between peak and off-peak periods can be 25 cents per kilowatt-hour–or roughly $2.50 cents per day. Battery storage can help you shift grid usage from high- to low-cost periods and add up to substantial savings.”
In the past, tax credits were only available for energy storage if you had an onsite renewable energy system. Starting January 2023, the credit became available to standalone battery units. If you only want a standalone battery that charges from the grid, you will still qualify for the credit. This will provide you with power during peak shaving, ultimately saving you money.
Purchasing a standalone battery system will save you an exponential amount of money in the long run. The battery is a valuable safety net, providing homes with power during rolling brownouts or extreme weather emergencies.
The soon-to-be-released The Dragonfly Wing™, Dragonfly Energy’s latest in residential, industrial, and mobile energy storage, is a great option for your in-home energy storage system–one that is safe, powerful, reliable, and qualifies you for tax credits. If you received the tax credit for solar in 2022, you can add battery storage in 2023, like the Dragonfly Wing™, and claim another tax credit.
The Dragonfly Wing™: All-In-One Energy Storage
The Dragonfly Wing™, part of Dragonfly Energy’s new line of smart power system technology, Dragonfly IntelLigence, is a great option for families, residential homeowners, and businesses. The Wing will allow you to store, and use, energy from the battery during peak hours, for a lower energy bill overall. The Dragonfly Wing™ is a powerful, safe, and expandable storage solution designed for residential, industrial, and mobile applications. The groundbreaking technology inside enables easy installation and reliable performance.
- Safer and more dependable than other brands on the market
- 5kWh of LiFePO4 (Battle Born Batteries w/ Dragonfly IntelLigence™)
- Proven battery product with top-notch technical support
- Easy install, with even easier expandability to multiple units
- Selectable voltage (12v, 24v, or 48v) with the push of a button
- Special hybrid balancing: critical components in large power units keep batteries performing safely and at peak performance
- Links to the Dragonfly Energy Mobile App, allowing for remote access
More on the Dragonfly Energy Mobile App
Everything within the Dragonfly Wing™ energy storage system is available within The Dragonfly Energy Mobile app. The app allows users to remotely monitor, configure and optimize their Smart Lithium Battery systems featuring Dragonfly IntelLigence™.
- Powerful monitoring tools for single batteries or entire power system
- Receive critical notifications for system alerts, errors, and warnings
- Optimize the life and performance of lithium batteries
- Balance and Auto-configure Power Systems
- Customize System Alerts
- Easy setup and installation of Dragonfly IntelLigence™ products
Compatible with Dragonfly IntelLigence™ Products such as:
- Battle Born Batteries with Dragonfly IntelLigence™
- Dragonfly IntelLigence™ Hub
- Dragonfly IntelLigence™ Ion
- And, of course, The Dragonfly Wing™
Clean Energy Storage, Is Making the Switch Worth It?
As climate change continues to fuel extreme weather events across the United States, rolling blackouts and Planned Safety Power Shutoffs (PSPS) continually leave thousands of people without power when they most need it. Solar panels and battery storage give you a safety net and independence from the grid. Pairing solar panels with battery storage gives you your own mini safety net so you don’t have to rely on the grid at all.
Another argument for power storage to note is that electric vehicle production and purchasing are outpacing the ability of our electrical grid. As each family plugs in their electric vehicles, more energy is needed from the grid. What does this do? It raises energy prices for everyone, even if you don’t have an electric vehicle. Purchasing a standalone battery system, especially the Dragonfly Wing™, will save you an exponential amount of money in the long run, as well as provide power in your home during rolling brownouts from strain on the grid.
How do I Go About Getting an Energy Storage System and/or Solar for My Home?
Dragonfly Energy is dedicated to a greener future and are here to inspire and help you get there. The customer service and care Dragonfly Energy and Battle Born Batteries provides are unparalleled in the industry. We have specialists on call and ready to help you, or your installer, through any challenges that may arise throughout the life of your batteries or energy storage system.