Applications: Stationary Energy Storage (Industry)

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Changing US Federal Policy Environment U.S. incentives accelerate domestic battery production while new tariffs, FEOC rules, and China controls force fast supply-chain diversification. Legislation / Rule

Description

Effects on Stationary Energy Storage

BBBA – Build Back Better Act (2021, proposed)

Proposed climate spending bill; not enacted but informed IRA design.

Set early direction for domestic manufacturing incentives and supply-chain reshoring later implemented under IRA.

ITC – Investment Tax Credit (expanded 2023)

30% tax credit; standalone storage eligible from 2023. Adders raise credit to 40–70%.

Improves BESS project economics; accelerates utility-scale and C&I deployment across the US.

IRA – Inflation Reduction Act (2022)

§45X PTC for domestic battery manufacturing; §48/§45 ITC/PTC for storage.

Anchor policy for BESS deployment and US supply chains; drives gigafactories and project pipelines.

Tariffs – AD/CVD & Section 301 (2024–2025)

Higher duties on Chinese Li-ion batteries, components (e.g. anodes), EVs, and minerals.

Raises import costs; shifts sourcing toward North America and Korean/Japanese suppliers.

OBBA - One Big Beautiful Bill FEOC / PFE Rules (2024–2025)

Limits credits for entities linked to China, Russia, Iran, or North Korea.

Disallows some EV/manufacturing credits; reshapes sourcing, JV structures, and mineral supply.

China Export Controls (2023–2025)

Export licensing on graphite and advanced battery materials/technologies.

Increases supply risk; accelerates diversification, domestic processing, and recycling.

See the Policy section for wider commentary on US ESS-related policies. Source:: https://www.congress.gov/bill/117th-congress/house-bill/5376, https://www.irs.gov/credits-deductions, https://www.congress.gov/bill/117th-congress/house-bill/5376, https://ustr.gov/issue-areas/enforcement/section-301-investigations, https://www.energy.gov/articles/feoc-guidance, http://english.mofcom.gov.cn

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