pv magazine Quotes Jenner and Lund on Financial Complexities of Adding Energy Storage to Solar

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“A solar PPA is a relatively simple document – a solar+storage PPA is potentially very complex (in drafting and implementation). It is not as simple as just adding ‘battery’ to the project description.” —Morten Lund on complexity of restructuring already-financed solar projects.

Tax attorney Greg Jenner and energy attorney Morten Lund were quoted in pv magazine in an article titled “The customer has spoken – 74% want energy storage,” published April 11, 2018. The article outlines market research about the factors consumers consider important in making the purchase of a solar installation, noting that the desire for high quality equipment outweighs shoppers’ desire for bargains and also that in 2017 a sizable percentage of customers were considering adding energy storage to their systems.

The continuation by the government of the 30 percent investment tax credit (ITC), along with a recent ruling by the IRS that a retrofitted energy storage system qualifies for those tax benefits, means that the millions of existing and future residential and commercial, industrial and utility scale solar installations are likely to have a significant market potential, but Jenner stresses that caution needs to be taken in the IRS’s interpretation of the residential solar credit versus the business ITC.

“It is not clear that the IRS would reach the same conclusion for the energy investment tax credit available to business, Jenner said. “The recently-issued ruling applies specifically to the residential solar credit, which is different than the energy ITC. Although many of the principles articulated by the IRS could translate to the energy ITC, it also is possible that the IRS would reach a different answer.”

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Morten A. Lund
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