When it comes to discussions regarding battery storage, it's likely that most people will make the connection to Tesla's Elon Musk and his attempt to develop the Gigafactory -- and rightfully so, for the future of the massive battery production facility is one of the most compelling narratives in the ongoing validation of alternative energy. However, there are much greater applications for battery storage than just automotive, offering investors yet another way to profit in the energy sector.
The AES Corp. (NYSE:AES) is just one company that is pioneering the use of utility-scale battery storage -- a technology that will be in high demand as utilities adopt greater amounts of solar and wind power capacity in their energy portfolios. In the residential market, SunPower (NASDAQ:SPWR) and SolarCity (NASDAQ:SCTY) are also looking to offer energy storage solutions to its customers. SunPower's CEO, Tom Werner, recognizes the value in offering energy storage to its customers, "Battery storage and energy management services are highly complementary to residential solar systems.Together, they help further reduce the monthly cost of energy, maximize value and energy security, and provide a hedge against rising utility costs."
Do you know this energy tax "loophole"?
You already know record oil and natural gas production is changing the lives of millions of Americans. But what you probably haven't heard is that the IRS is encouraging investors to support our growing energy renaissance, offering you a tax loophole to invest in some of America's greatest energy companies. Take advantage of this profitable opportunity by grabbing your brand-new special report, "The IRS Is Daring You to Make This Investment Now!," and you'll learn about the simple strategy to take advantage of a little-known IRS rule. Don't miss out on advice that could help you cut taxes for decades to come. Click here to learn more.
Scott Levine owns shares of SunPower. The Motley Fool recommends SolarCity. The Motley Fool owns shares of SolarCity. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.