Could the Senate budget throw a lifeline to energy storage?

AI generated summary

The Senate's draft budget proposes a more moderate approach to clean energy tax credits compared to the House's plan, which aimed to eliminate all clean power credits. While the Senate intends to reduce investment and production tax credits for wind and solar by 2026, it has included energy storage, along with hydropower, geothermal, and nuclear, in the list of technologies that will retain their full credits until 2033. This decision is seen as a crucial support for grid batteries, which have experienced significant growth since receiving their own tax credit in 2023.

However, the Senate's proposal is still subject to debate and requires reconciliation with the House's budget. Additionally, new requirements regarding foreign influence on tax credits could complicate financing for battery projects, as developers must navigate stringent rules about sourcing components. While energy storage remains a dynamic player in the market, the added bureaucratic hurdles could deter investment and slow down the necessary expansion of on-demand power generation in the U.S.