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Home Battery Guide 2026
The federal tax credit landscape changed. Here's what still makes sense for home battery storage—and what doesn't.
The Short Version
Home batteries can still make financial sense in 2026—but the math changed. Whether it works for you depends on your utility rates, time-of-use structure, and whether you have solar. We'll break it down honestly.
What Changed in 2026
The federal Investment Tax Credit (ITC) for standalone batteries expired for most residential installations. Batteries paired with solar still qualify for the solar ITC, but standalone battery purchases lost their federal incentive.
This shifts the economics significantly. Without the 30% federal credit, a $15,000 battery system is now $15,000—not $10,500 after credits.
When Batteries Still Make Sense
- Paired with new solar: The solar ITC still applies to battery storage installed with solar panels
- High time-of-use rate differentials: If your utility charges 3-4x more during peak hours, arbitrage still works
- Frequent outages: Backup power has real value in areas with unreliable grid
- State incentives: California SGIP, Massachusetts SMART, and other state programs still exist
When Batteries Don't Make Sense
- Flat-rate electricity: No arbitrage opportunity without time-of-use rates
- No solar, no state incentives: Pure economics are challenging without credits
- Short-term ownership: Payback periods are now 10-15+ years in many cases
State Incentives Still Available
Several states offer their own battery incentives that can significantly improve the economics:
- California: Self-Generation Incentive Program (SGIP) for qualifying customers
- Massachusetts: SMART program includes battery adders
- Vermont: Battery storage incentives through utilities
- Oregon: State tax credits for battery storage
What This Page Doesn't Do
We don't calculate your specific savings, recommend specific products, or guarantee incentive availability. Local utility rules, installation costs, and program changes affect your actual economics. This is a starting point for research, not financial advice.