ITC Treatment for PV+ES

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clarknd
Topic Author

30 Sep 2015 15:55 #3766 by clarknd

ITC Treatment for PV+ES was created by clarknd

Paul,

How does SAM treat the ITC for a PV+ES system? Does the ITC apply to all the system costs regardless of the amount of energy that the ES system may be charged from PV?

Best,

Nathan

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Paul Gilman

30 Sep 2015 16:15 #3767 by Paul Gilman

Replied by Paul Gilman on topic ITC Treatment for PV+ES

Hi Nathan,

I assume that "PV+ES" means PV with energy storage (battery). When you specify the ITC as a percentage, SAM calculates the percentage based on the total installed cost, regardless of how the battery is charged and discharged.

You can verify this by looking on the Results page Cash Flow tab at the State ITC and Federal ITC rows (under "STATE INCOME TAX" and "FEDERAL INCOME TAX", respectively). The ITC amount should be the product of the percentage you specify on the Incentives page and the total installed cost on the System Costs page (plus a fixed ITC amount if you specify it on the Incentives page).

Best regards,
Paul.

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clarknd
Topic Author

30 Sep 2015 17:22 #3768 by clarknd

Replied by clarknd on topic ITC Treatment for PV+ES

Thanks for the prompt response.

Are there future plans for SAM to accommodate for the "75% cliff" rule for how the ITC would get applied to energy storage system installed with PV?

www.irs.gov/pub/irs-wd/1308005.pdf

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Paul Gilman

02 Oct 2015 20:24 #3769 by Paul Gilman

Replied by Paul Gilman on topic ITC Treatment for PV+ES

Hi Nathan,

Thank you for sending that link.

We do not have plans (at the moment) to implement the "75% cliff" for the ITC in SAM. We will add metrics to show how much of the energy that goes to the battery is from the PV array, which will at least make it possible to determine whether the it would apply. With that information, it would be possible to write a script to model the effect of the regulation on the ITC amount in Year 1 and any recaptured credit in subsequent years.

Best regards,
Paul.

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