Senator Bingaman (left), Wyden and Shaheen (right) believe energy storage technology would help make more use of renewable energy and also boost grid reliability

Three Democrat Senators have introduced legislation to Congress seeking $1.5 billion in tax credits for energy storage projects.

Senators Jeff Bingaman, Ron Wyden and Jeanne Shaheen said on Tuesday that their proposals would support technology that would help promote the use of intermittent energy sources like wind and solar projects.

Supporting storage systems would also help deal with peak energy demands and provide a more reliable grid, the Senators suggested.

The Storage Technology of Renewable and Green Energy Act of 2010 (STORAGE 2010) would provide tax credits for storage projects that are connected to the US grid.

Businesses and homeowners that install energy storage systems on their properties would be among those eligible for tax credit support.

This would include smart grid devices that might help with the charging of plug-in electric vehicles, as well as thermal cooling systems that make ice at night when electricity is cheaper for use cooling a building in the daytime.

Tax credits

The legislation proposes a 20% tax credit for storage projects, up to $30 million for grid-tied installations.

For individual homes and businesses, tax credits would cover 30% of project costs, up to $1 million total.

Sen. Bingaman (D-NM) said increasing the use of storage technologies was “essential” for US clean energy ambitions and for the modernization of the grid.

He said: “Expanding our storage capacity will improve the efficiency, flexibility and reliability of the grid, allowing us to wring the most power out of it, while adding large amounts of new renewable energy resources like wind and solar.”

The Senator from New Mexico added: “These incentives also will make technologies to store renewable energy more affordable for businesses and homes, which could help dramatically lower electricity bills and reduce pollution.”

Industry

The STORAGE Act, which is actually a revision of the STORAGE Act introduced by Senator Wyden in Congress last session, received a warm welcome from energy storage technology firms this week.

Ice Energy, a Colorado company that makes thermal cooling systems for buildings, said the bill would fill a particular gap in US energy policy.

“The clean, smart and affordable electric power grid of the 21st century has been waiting for the STORAGE Act of 2010,” said David Nemtzow, Chief Policy Officer for the company. “This key legislation addresses a critical but missing element of U.S. energy policy:  how to accelerate the deployment of energy storage.  Investment tax credits for storage, both distributed and centralized, will help jump start its wider deployment, just as tax credits have done for wind, solar, efficiency and many other energy technologies.