SEIA Comments on Low-Income Communities Bonus Credit as 2025 Rule Changes Impact Solar Storage

The Solar Energy Industries Association (SEIA) has provided feedback on the proposed rules for the Low-Income Communities Bonus Credit, which will shift to a technology-neutral tax credit structure in 2025.

However, starting that year, storage assets will no longer be eligible for this benefit. This change may create additional administrative hurdles for residential and community solar companies while also reducing the accessibility of energy storage for solar customers.

The bonus credit is designed to encourage businesses to invest in solar projects that support low-income communities, including those on Tribal land and in affordable housing developments. Eligible companies could receive up to a 20 percentage point increase in the value of the technology-neutral investment tax credit. “As electricity demand soars, we should focus on removing barriers to solar and storage adoption, not adding them,” said Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association. “The proposed changes to the Low-Income Communities Bonus Credit in 2025 disincentivize storage adoption, missing an important opportunity to boost grid reliability and support the people and communities impacted by environmental injustice. This change is out of step with the intention of the bill, and we urge the administration to address this before finalizing.”