For over 40 years thermal energy storage (TES) systems (like ice and chilled water) have been integrated into district energy systems, insulating customers from expensive capacity expansions, sudden service interruptions, and volatile rate structures.
In 2022, Congress passed the Inflation Reduction Act, which made new thermal energy storage projects eligible for the Investment Tax Credit (ITC). This change is reflective of the increasing value of thermal energy in the US energy landscape, particularly for decarbonization and modernization of the energy grid. Incentivizing thermal energy storage allows district energy systems to expand their array of benefits to both their customers and the grid at large.