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Tax

Apr. 17, 2026

Contractor accuses Edison of delaying projects for tax credits

An energy contractor alleges Southern California Edison delayed battery storage projects to qualify for $380 million in Inflation Reduction Act tax credits, raising questions about incentives and project timelines.

Contractor accuses Edison of delaying projects for tax credits
Paul J. Fraidenburgh of Pillsbury Winthrop Shaw Pittman LLP

A large-scale energy infrastructure firm has sued Southern California Edison, claiming the utility deliberately delayed major battery storage projects to secure hundreds of millions of dollars in federal tax credits. If proven, the claim could spotlight unintended consequences of the Inflation Reduction Act's clean energy incentives.

The lawsuit, filed in U.S. District Court in Los Angeles, accuses SCE of bad faith, breach of contract and a calculated effort to push project co...

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