On April 10, the Maryland General Assembly took an historic step – becoming the first in the nation to pass legislation (SB-758) that provides a tax credit for the installation of an energy storage system.
Sponsored by State Senator Guy Guzzone (D-District 13) and Delegate Kirill Reznik (D-District 39), Senate Bill 758 establishes income tax credits for up to 30 percent of the total cost of energy storage installed at residences and businesses from 2018 through the end of 2022, with an annual overall cap of $750,000. The bill now is awaiting the signature of Governor Larry Hogan (R).
And, according to a report by the Energy Storage Association, the national trade group for the industry, there’s even more good news pending: Also on April 10, the Maryland legislature passed House Bill 773 , requiring the state’s Power Plant Research Program to conduct a study of regulatory reforms and market incentives that may be necessary to increase the use of energy storage devices in the state; and to make its final report and recommend policy actions to specified committees of the General Assembly on or before December 1, 2018.
“Notably,” the industry association commented, “Maryland legislators chose to embrace all types of energy storage, an important distinction. While batteries make most of the headlines today, thermal (e.g., ice energy) and mechanical (e.g., flywheels) energy storage systems have similar capabilities and are proven, cost-effective solutions in many applications.”
Over the next 5 years, the association predicted, “Maryland will play a significant role in the advancement of the energy storage industry,” noting that, once enacted, this law is expected to directly spur more than 10,000 kWh of customer-sited energy storage systems and will be paired with private sector and homeowner investments.
According to market research firm IHS, the energy storage market is set to “explode” to an annual installation size of 6 GW in 2017 and over 40 GW by 2022 — from an initial base of only 0.34 GW installed in 2012 and 2013.