Contributed by Jenny Pham, MS, Bimergen Analyst

In early July, the U.S. administration passed a sweeping legislative overhaul aimed at reshaping American tax and infrastructure policies, otherwise known as the “Big Beautiful Bill.” The bill has sparked widespread discussion across clean energy markets, given its direct impact on incentives established under the 2022 Inflation Reduction Act (IRA). The bill marks a sharp pivot away from clean energy investment frameworks that have significantly fueled industry growth: rollbacks of many clean energy investment tax credits (ITCs), particularly for solar and wind, while favoring fossil fuel development and domestic manufacturing. However, amidst the volatility, energy storage has emerged as one of the few sectors to retain long-term policy support.

Under the Inflation Reduction Act of 2022, solar and wind received a 30% ITC benefit through 2032, with bonus credits available. This has since been amended under the new administration, effective as early as 2026. Projects commencing construction after 2026 will no longer qualify for ITC. Therefore, solar and wind projects are expected to see rush completion and financial strain due to this shortened window. Meanwhile, energy storage projects remain a tax-advantaged asset class. Under Section 48 of the new tax code, standalone battery energy storage projects retain a full 30% ITC through 2033. Projects will continue to qualify for up to 50% in tax credits, inclusive of an additional 10% for projects built with domestically produced components, and an additional 10% bonus for projects located in energy communities. As such, this solidifies energy storage as a reliable investment.

With ITC certainty until 2033, Bimergen will continue to pursue and accelerate procurement for its ready-to-build (RTC) battery projects to meet prevailing timelines. Our robust pipeline strategically includes projects in prime energy locations, and we are actively aligning supply chains to prioritize American products to maximize quality and ITC bonuses. In addition to ITC eligibility, Bimergen is committed to diversifying revenues through frequency regulation and energy arbitrage, as well as building strong relationships with key institutional stakeholders to maintain predictable returns.

While the new bill imposes significant headwinds across the U.S. clean energy sector—especially for wind and solar—battery storage remains a critical mission for decarbonization, grid reliability, and demand management. As solar and wind adjust to new economic realities, storage will play an increasingly more central role. Bimergen Energy is prepared to lead with agility, data-driven planning, and a commitment to providing forward-looking solutions in this changing energy landscape.

Bibliography

1. Colthorpe, Andy. “Senate Finance Committee Reconciliation Bill Draft Keeps Energy Storage ITC, Cuts Solar PV, Wind and EV Incentives.” Energy Storage, June 17, 2025. https://www.energy-storage.news/senate-finance-committee-reconciliation-bill-draft-keeps-energy-storage-itc-cuts-solar-pv-wind-and-ev-incentives/

2. Crooks, Ed. “What the ‘Big Beautiful Bill’ Means for US Energy.” Wood Mackenzie, July 11, 2025. https://www.woodmac.com/blogs/energy-pulse/big-beautiful-bill-us-energy/