Ownership of energy storage project before it is sold
The rapid expansion of energy storage technologies has ushered in new legal complexities within the realm of energy law. . On December 4, 2024, the US Department of the Treasury (“Treasury”) and the Internal Revenue Service (“IRS”) issued final regulations, TD 10015, (the “Final Regulations”), which provide guidance on the definition of energy property and the rules applicable for the energy credit available under. . chapter offers procurement information for projects that include an energy storage component. The material provides guidance for different ownership models including lease, Power Purchase Agreement (PPA), or Owner Build and Operated (OBO). org/resources/detailed-summary-maps/ Source: DSIRE, "Net Metering Policies. [PDF Version]FAQS about Ownership of energy storage project before it is sold
How will the proposed regulations change the definition of solar energy property?
The Proposed Regulations would amend the definition of “solar energy property” so that it no longer includes storage devices. In addition, as noted below, the Dual Use Rule is no longer relevant to determining the eligibility of energy storage technology placed in service after December 31, 2022. Qualified Interconnection Property
Does a retrofitted unit of energy property qualify for service?
The Proposed Regulations would apply the so-called “80/20 Rule” to determine whether a retrofitted “unit of energy property” qualifies as originally placed in service even if it contains some used components of property.
Can a battery storage project owner sell a resource adequacy attribute?
Battery storage project owners can sell and transfer these attributes under long term resource adequacy contracts to these utilities or other load serving entities. In California, utility-scale battery storage projects are eligible for resource adequacy attributes.
What are co-located solar and storage projects?
Co-located solar and storage projects usually feature a mix of the fixed and variable revenue sources, which continue to evolve as changes occur in regional energy regulations and markets.
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