How the U.S. Federal Investment Tax Credit (ITC) Can Save You 30% on Hybrid Power Solutions

As businesses across North America seek cleaner, more reliable energy, hybrid power systems—combining solar, battery storage, and backup generation—are rapidly gaining traction. At Hybrid Power Solutions, we specialize in portable, industrial-grade hybrid systems that deliver dependable power wherever you need it. If you’re considering investing in a hybrid system, the U.S. federal Investment Tax Credit (ITC) can help you save significantly on your purchase.

What Is the Federal Investment Tax Credit (ITC)?

The ITC is a federal incentive that allows businesses to claim a tax credit equal to 30% of the total cost of eligible clean energy systems, including solar panels and battery storage. This credit is a dollar-for-dollar reduction in your federal tax liability, making it one of the most impactful ways to reduce the upfront cost of adopting clean energy.

How Does the ITC Work?

• 30% Credit: Claim 30% of the total installed cost of eligible equipment as a tax credit.

• No Cap: There’s no maximum limit on the amount you can claim.

• Carry Forward: If your credit exceeds your tax liability, you can carry the unused portion forward to future years.

Who Qualifies?

• Ownership: The system must be owned by the business (not leased).

• Location: The system must be installed in the United States.

• Timing: The system must be new and placed in service before December 31, 2034, to receive the full 30% credit.

What Parts of a Hybrid System Are Covered?

Hybrid Power Solutions’ trailer-based hybrid systems typically include:

• Solar Panels: Fully eligible for the ITC.

• Racking and Mounting: Eligible, as these are necessary for the solar installation.

• Battery Storage (e.g.,  Spark Cube 30kWh): Eligible, as long as the battery is at least 3 kWh in capacity. The ITC now covers batteries whether they’re paired with solar or installed on their own.

• Installation: the install and interconnection costs for the eligible components are also covered.

Please note that a backup diesel generator used in a hybrid system is not covered though the rest of the components are. The ITC is for clean energy only, so fossil fuel generators are excluded.  

Does the System Need to Be Grid-Connected?

No. The ITC applies to both grid-tied and off-grid systems. Whether your hybrid trailer is powering a remote job site or supplementing grid power, you can claim the credit as long as the system meets the other eligibility requirements.

How Do You Claim the ITC?

1. Install the System: Complete your project and ensure it’s operational.

2. Keep Records: Save all invoices and documentation for eligible costs.

3. File IRS Form 3468: Claim the credit by submitting IRS Form 3468 with your federal tax return.

4. Meet Labor Requirements: For the full 30% credit, ensure compliance with prevailing wage and apprenticeship standards if applicable.

Bonus Credits

Some projects may qualify for additional credits (up to 10–20% extra) if they’re located in “energy communities” or low-income areas, or if they meet certain labor requirements.

Where to Learn More

• Download IRS Form 3468

• About Form 3468 and instructions

• Clean Electricity Investment Credit overview

In summary:

If you’re investing in a hybrid solar and battery system from Hybrid Power Solutions, the federal ITC can help you save 30% on eligible costs. Solar panels, racking, and battery storage all qualify, while diesel generators do not. The system doesn’t need to be grid-connected, and the application process is straightforward.

Ready to power your next project and save?
Contact Hybrid Power Solutions to learn more about how our hybrid systems can help you maximize your ITC savings and achieve your sustainability goals!