Facilities are using 48E investment tax credits to make energy projects pencil out

This news is mostly about big buildings, not single-family homes, but it shows where federal energy incentives are headed. Hospitals, universities, schools, and other large facilities are using a federal tax break called the Section 48E investment tax credit to pay for battery storage, solar, and geothermal systems. The credit can cover 30% to 50% of project costs, and one hospital project expects to get back $4 million to $8 million on a $65 million building addition. The idea: store cheaper nighttime electricity in a battery, then use it during the day when rates are higher, cutting energy bills.

A 2025 federal law (the One Big Beautiful Bill Act) cut back some clean-energy tax credits, including for standalone solar, but solar paired with battery storage still qualifies, as does geothermal. The credit is scheduled to start phasing out in 2032, though a bill in Congress (H.R. 8477) would remove that accelerated timeline. There's also a separate deduction, called 179D, that rewards efficient HVAC, lighting, and insulation in commercial buildings.

None of these specific credits apply to a typical house. But the same idea, pairing solar with a home battery to shift your electricity use to cheaper hours, is something worth asking about if you're considering solar for your own home. Battery technology has also improved, with fewer of the lifespan and fire-risk problems that used to worry buyers. Check what incentives your state or utility offers for home battery storage.