Two Vermont batteries among first to be financed under new storage ITC
Grid Scale

Two Vermont batteries among first to be financed under new storage ITC

Two battery storage systems now in commercial operation in Vermont are among the first to take advantage of a new tax incentive for energy storage deployment under the Inflation Reduction Act.

Standalone energy storage systems can now utilize the Investment Tax Credit, the same financing mechanism that supported the meteoric rise of solar power in the U.S.

Strata Clean Energy partnered with United Community Bank and Enhanced Capital on an $8.7 million tax equity investment to support the projects, both of which have 5 MW/10MWh of storage capacity. The projects are located in Georgia, Vermont and Springfield, Vermont.

GO DEEPER: Key Capture Energy co-founder and CEO Jeff Bishop joined Episode 50 of the Factor This! podcast to break down how states should, and shouldn't, go about procuring battery storage, and why software is a crucial piece of the puzzle. 

Strata will own and operate both projects. They were asked not to disclose their utility contract but said the assets would be used to alleviate congestion during peak times. Strata performed its own EPC work and LS Energy Solutions provided the batteries, part of its AiON-ESS series.

With the addition of the Georgia and Springfield projects, Strata has developed over 3.1 GWh of battery energy storage assets across 13 projects and plans to own and operate facilities nationwide as part of its independent power producer strategy.