The bill includes a cap of $5,000 for residential storage
projects, while for commercial projects, the cap is set at $75,000. The state
government has allocated a total of $750,000 per year to be used in credits.
The Energy Storage Association cites that 2016 saw over 100
percent growth in commercial energy storage systems year-over-year. That same
year, associated costs plummeted 30 percent. This trend would indicate that
more and more individuals (both commercially and residentially) see the benefit
of decentralized storage solutions.
As it stands, the bill will be presented to Maryland Gov.
Larry Hogan for final approval. But so far, support has been firm — the bill
passed the state Senate unanimously; in the House by 101-11 votes. This should
be enough to endure a veto from the governor’s mansion.
The governor has been a tough proponent of limited
government spending — indeed, Hogan is a Republican. He has been hesitant to
engage in state program expansion, especially concerning energy efficiency and
renewable energy projects.
Regardless, the state has been aiming to grow its renewables
infrastructure. For a state maintaining such a position while also attempting
to curb costs, a tax credit may be an attractive solution. For instance, states
such as Massachusetts and California have been developing mandates — policy
that Republicans like Hogan would likely denounce outright. However, this
particular legislation is widely expected to receive Hogan’s approval.
The tax credit would apply to various energy storage
technologies, not just traditional batteries. Innovations in the energy storage
industry — for instance, flywheels and compressed air, types of mechanical and
thermal storage solutions — would also be covered under the credit.
The state’s legislature passed a similar bill which
authorizes a study to discern which ways of promoting storage solutions is
best. Maryland’s Public Service Commission is creating a working group on the
valuation of distributed energy storage. The long-term goal is to discover a
way to create a more reliable electric system.
Currently, the federal investment tax credit, can be applied
to solar-plus-storage solutions, meaning that storage can receive a credit if
installed alongside a solar PV system. However, this proposal is the first ever
to attempt to incentivize storage-only deployments.
The aforementioned regulations from other states are much
stricter in their schemes to grow storage projects. California’s mandate
requires 1,325 MW of energy to be stored by utilities by 2020. Oregon has taken
similar measures, as the state’s public utility commission issued guidelines
that require Portland General Electric and PacifiCorp (two of the state’s
utilities) to store a minimum of 5 MWh by January 2020.
Massachusetts on the other hand became the third state in
the country to pass a mandate. As it currently stands, the exact amount of
energy that will be required to be stored has yet to be determined — the
state’s Department of Energy Resources has plans to decide on an exact figure
this summer.
New York City is another location with a mandate of its own
right — the city has a goal of 100 MWh by 2020.
Hawaii’s state legislature is also experimenting with
storage tax credits — there, a bill was passed that requires the state to use
100 percent renewable resources by 2045.
It will be interesting to see which of these diverse
governmental solutions will prove most effective at growing storage projects.
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