If you’ve been considering investing in on-site power solutions like the R3Di® System for your facility, there’s never been a better time to act.
Thanks to new and expanded energy storage tax credits, commercial property owners and operators can use financial incentives to potentially save up to 50% of the cost of the project and take advantage of 100% bonus depreciation during the first year of installation.
Whether you’re operating a fast-growing business, managing a multi-family complex, or operating a manufacturing plant, these opportunities could translate to savings you can reinvest into your business while putting you on a path to long-term energy independence.
What Are the New Energy Storage Tax Credits?
On July 4, President Donald Trump signed U.S. Senate Bill 218-214, known as the One Big Beautiful Bill Act.
This act retains the Investment Tax Credit for energy storage technology first introduced in the Inflation Reduction Act of 2022, which gave companies a 30% tax credit for qualifying projects.
It also offers an additional 10% “energy community bonus” tax credit for projects installed at a brownfield, coal closure county or an area with high unemployment rates and high employment rates in the fossil fuel industry.
This map shows areas that have been designated as coal closure sites, those directly adjoining a coal closure, or metropolitan service areas (MSAs or non-MSAs that met this criteria as of June 2024.
The new legislation adds a “domestic content bonus” tax credit of 10% for projects that have more than 40% of their components produced by U.S. factories.
The R3Di® System qualifies for this bonus.
These combined tax credits can potentially add up to 50%.In addition, projects under 5MW may qualify to have interconnection equipment like switchgears and transformers included as qualified property.
Immediate Returns: Bonus Depreciation and Direct Pay
The ITC isn’t the only benefit. The current federal tax policy also allows 100% bonus depreciation for assets placed in service before 2029.
That means property owners can deduct the entire cost of their R3Di® System in the first tax year — saving hundreds of thousands of dollars in federal tax.
For nonprofits or tax-exempt organizations that traditionally couldn’t benefit from these credits, Direct Pay provisions now allow a cash refund equivalent to the value of the credit. This means organizations can now claim energy tax credits even if they don’t owe taxes — a huge breakthrough for schools, hospitals, and public-sector projects.
Real-World Impact: From Energy Resilience to Societal ROI
The benefits of investing in energy storage systems go beyond the balance sheet.
With power outages becoming more frequent and costly, microgrid systems are quickly shifting from a luxury to a necessity. The R3Di® System offers continuous, uninterruptible power, whether it’s connected to the grid or running independently.
When connected to the grid, it controls variable current, voltage and frequency, eliminating spikes and dips that can damage equipment or impact production.
It can also run independently from the grid during long-duration outages or when your facility is strategically curtailing its consumption to take advantage of utility rate incentives, such as demand response programs. Most diesel generators are only rated to run 100 hours per year due to EPA regulations.
It’s also more efficient than diesel generators, running at 99% efficiency at full load while most diesel generators can only run at 40% efficiency at 80% total load capacity.
The system runs on natural gas, reducing over 90% of carbon emissions compared to diesel generators and resulting in a significant societal return on investment (SROI).
The R3Di® is also designed to integrate with renewable energy sources, including solar, wind and geothermal installations, and can power fast EV charging stations.
The system is monitored 24/7, 365 days a year by the Grove network operations team and Grove365Ⓡ software, which collectively track weather, grid and asset performance and utility prices to determine the best times to deploy the system according to your goals.
Why Now Is the Time To Act
The window to act is limited. While battery energy storage systems that start construction by 2033 can take advantage of the full 30% ITC, if you’re planning to use a BESS in combination with solar panels or wind turbines, the timeline is much shorter.
The 48E credit is up to 30% for these projects, but only if they are placed in service before Dec. 21, 2027, according to analysis of the bill by Renewable Energy World.
That means companies are running out of time to plan these projects and start construction. Planning and engineering for these projects may take a year or more, which makes for tight construction timelines.
Geothermal and nuclear projects, however, have a longer timeline and are able to receive the full tax credit through 2033, as well as partial eligibility through 2036, according to the analysis.
The timeline for taking advantage of the domestic content bonuses is also running out. Projects already under construction before June 16, 2025 need to have 40% of the cost of key components sourced in the United States, while projects that began construction on or after that date need to meet domestic content requirements of 45%.
The domestic content requirements needed to take advantage of the additional 10% bonus continue to go up to 55% for projects beginning construction in 2027.
The ability to combine ITC and 100% bonus depreciation is a very rare opportunity, and may only be open for a limited time. The last time this was offered was 2017, and the window for taking advantage of both closed quickly.
Ready To Invest in Your Future?
At e2Companies, we offer a turnkey solution to help you install the right energy storage system for your needs. We also handle all the engineering, procurement, permitting, and service agreements, so there’s no need for time-consuming engineering studies or interconnection agreements.
Let’s put these renewable energy tax incentives to work for your business while they’re still available.
Contact us today to schedule a discovery call and see how much your facility could save.