Inflation Reduction Act and 40% Tax Credits for Thermal Energy Storage to Utilize Surplus Renewable Energy
Thermal energy storage is a proven, reliable, and cost-effective solution for commercial buildings to reduce their peak electric demand and reduce utility costs. It has traditionally shifted electric load from on-peak to less expensive off-peak power. As the utility industry transforms, moving from fossil fuels to renewable energy, thermal energy storage will play a critical role in using surplus renewable energy. Thermal storage is already taking surplus wind energy at night. Chillers powered by solar energy will provide both chilled water for cooling during the day and ice for cooling at night. The federal government realized how important thermal storage is to achieving a net zero grid and provides a tax credit of 40% for thermal storage systems. That makes thermal storage the lowest first cost option.
Bruce B. Lindsay, PE, CEM is the Business Development Leader for Trane Technologies' Thermal Storage Business. He has been involved in thermal storage for over 30 years, serving as the Executive Director of EPRI's Thermal Storage Center. Most recently, he served as the Energy Manager for Brevard Public Schools, managing 84 schools of which 20 had ice storage. He is a licensed engineer in Wisconsin, a Certified Energy Manager, and President of the ASHRAE Space Coast Section.