Financing standalone battery storage: the Inflation Reduction Act unlocks the tax equity investor

Riding the tailwinds of constituent demand for the rapid decarbonisation of the US power grid, Congress passed the Inflation Reduction Act (IRA) on 16 August 2022. The IRA expanded the US federal tax credits that are available under section 48 of the Internal Revenue Code to, among other things, promote the development of clean energy, including the deployment of battery storage systems.