Depreciation

Depreciation period of energy storage system

MACRS is the primary depreciation system used in the U. For qualifying energy property, like BESS under certain conditions, it typically follows a 5-year accelerated schedule. . The investment tax credit (ITC) and the Modified Accelerated Cost Recovery System (MACRS) depreciation deduction may apply to energy storage systems such as batteries depending on who owns the battery and how the battery is used. If owned directly by a public entity, such as a public university or. . The OBBB signed into law by President Trump on July 4, 2025, fundamentally alters the depreciation landscape for solar energy systems. The following schematic published by NREL explains which type of MACRS applies to which system: You can find the exact schedule for MACRS (Table A-1). .