TESS Energy

Tax Rebates

TESS Investment Tax Credits

Investment Tax Credits (ITC) offer substantial financial incentives for thermal energy storage systems, with initial tax base credits potentially reaching up to 30% of eligible project costs. Notably, if the project meets specific labor requirements, an additional boost to the ITC can be achieved. Furthermore, TESS Units containing domestic components can qualify for an extra 10% credit. These additional considerations augment the financial appeal of thermal energy storage investments and encourage adherence to socially responsible practices.

References

  • https://www.mcguirewoods.com/client-resources/alerts/2023/11/irs-refreshes-and-codifies-energy-property-tax-credit-guidance-in-proposed-section-48-regulations/
  • https://www.reuters.com/legal/legalindustry/inflation-reduction-act-expands-tax-credits-energy-projects-2022-09-15/
  • https://www.morganlewis.com/pubs/2023/11/treasury-and-irs-publish-long-awaited-guidance-on-renewable-energy-investment-tax-credit
  • https://www.energy.gov/ eere/sola r /federa 1-sola r-tax-credits-businesses

Thermal Energy Storage Systems (TESS) play a crucial role in enhancing a business’s Environmental, Social, and Governance (ESG) score through multifaceted contributions. On the environmental front, TESS facilitates a reduction in carbon emissions by optimizing energy use, diminishing reliance on carbon-intensive sources, and synergizing with renewable energy, bolstering a company’s commitment to sustainability. The improvement in energy efficiency is notable, as TESS enables businesses to store excess energy during low-demand periods, subsequently minimizing energy consumption during peak hours and participating in demand response programs to balance grid demand.

  1. Energy Efficiency and Conservation Requirements for Utilities

    • Program Type: Regulation and Mandates
    • Details: Act 129 mandates energy and peak demand reduction goals for utilities, with specific provisions for low-income and government sectors.
  2. PPL Electric Utilities Business Incentive Program

    • Program Type: Financial Incentive (Rebates)
    • Details: Offers rebates for energy savings, covering up to 50% of project costs, with a maximum of $500,000 for solar and combined heat and power projects.
  3. Alternative Energy Portfolio Standard (AEPS)

    • Program Type: Standard/Regulation
    • Details: Requires 18% of electricity from alternative sources by 2020-2021, including a solar carve-out.
  4. Renewable Electricity Production Tax Credit (PTC)

    • Program Type: Tax Credit
    • Details: Offers credits based on renewable energy produced, with recent enhancements from the Inflation Reduction Act of 2022.
  5. Business Energy Investment Tax Credit (ITC)

    • Program Type: Tax Credit
    • Details: Expanded eligibility and extended benefits under the Inflation Reduction Act of 2022, transitioning to a technology-neutral credit.
  6. Energy and Emissions Goals and Standards for Federal Government

    • Program Type: Government Goals
    • Details: Outlines objectives such as 100% carbon pollution-free electricity by 2030 and net-zero emissions by 2045.
  7. Modified Accelerated Cost-Recovery System (MACRS)

    • Program Type: Depreciation Mechanism
    • Details: Allows businesses to recover investments through accelerated depreciation, including bonus depreciation options.
  8. Solar Alternative Energy Credits

    • Program Type: Credit System
    • Details: Allows generation of credits from solar power that utilities must purchase to meet the state’s AEPS requirements.
  9. Net Metering

    • Program Type: Billing Mechanism
    • Details: Allows customers to offset electricity costs with solar generation, receiving compensation for excess power.
  10. FirstEnergy Commercial and Industrial Energy Efficiency Program

    • Program Type: Rebate Program
    • Details: Provides incentives for energy efficiency improvements within FirstEnergy’s service territories.
  11. Solar Energy Loan Program

    • Program Type: Loan Program
    • Details: Offers low-interest loans through the Pennsylvania Treasury to promote solar energy projects.
  12. Renewable Energy Program

    • Program Type: Financial Assistance
    • Details: Supports renewable energy projects in agricultural sectors with loans, grants, or other financial means.
  13. U.S. Department of Energy Loan Guarantee Program

    • Program Type: Loan Guarantee
    • Details: Facilitates investment in new and innovative energy technologies by providing loan guarantees.
  14. Energy Efficient Commercial Buildings Tax Deduction

    • Program Type: Tax Deduction
    • Details: Offers deductions