Paying for home battery backup: rebates, incentives and tax breaks

March 24, 2023

Holly Bowers

As homeowners seek to protect themselves against power outages and save money on high energy prices, home battery backup is growing in popularity. And just like solar panels, one of the biggest issues around installation is cost.

Thankfully, the federal government, states, and utilities now offer sizable incentives to help homeowners pay for energy storage systems. In this post, we'll look at your options for payment, as well as the types of incentives available.

Paying for home battery backup: rebates, incentives and tax breaks image

Getting started

Regardless of whether you're in a high risk area for wildfires, creating an emergency supply kit and making an action plan are simple tasks you can tackle right away. There are also things you can do to give your house the best chance of surviving a wildfire, like home hardening and creating defensible space, as well as seasonal actions you can take year-round to stay safe. Read all about preparing for fire season in Cal Fire's excellent guide here.

Install backup power

During a wildfire, utility companies will issue public safety power shut-offs to protect the grid and prevent power lines from being damaged. While this is a necessary step, it can cause massive disruptions to people's lives. Fortunately, installing a home battery is a practical way to avoid blackouts, and right now it's more affordable than ever.

Through California's Self-Generation Incentive Program (SGIP), there are sizable rebates available to homeowners for installing home energy storage. If you're eligible for a rebate through SGIP, it can dramatically change the cost of getting backup power. And you don't need solar to apply.

Saving with SGIP

In 2020, California set aside $1 billion in SGIP funding to help incentivize home energy storage. Today, there's about 10% left, but funds are going fast. The sooner you apply, the more likely you are to get a share of funding.

Three ways SGIP helps homeowners:

  • For the general market, SGIP can shave off about 10-15% of your home battery's cost. This applies to households using PG&E, SCE, SDG&E, and SoCalGas.

  • Households in low-income communities can apply for the Equity rebate and possibly get 85% of their battery covered.

  • If your household has experienced public safety power shut-offs or if you live in an area of high fire risk, you may be eligible for the Equity Resiliency rebate, which could cover 100% of your battery cost.

Haven makes it easy

Getting backup power is a practical way to prevent blackouts during fire season. And SGIP is making it a lot cheaper to do it. To find out if you're eligible for a rebate and to learn more about home battery storage, schedule a call with a Haven consultant.

We'll take care of everything - from choosing your battery and designing your system, to permitting, installation, and maximizing your savings through SGIP and other incentives. We'll also provide ongoing energy management and ways to save year-round. Let's talk.

Sources:

Smith, H. (2 May, 2023). Wet winter may delay - but not deter - 2023 fire season. The L.A. Times. https://www.latimes.com/environment/story/2023-05-02/wet-winter-may-delay-but-not-deter-2023-fire-season

Participating in Self-Generation Incentive Program (SGIP). California Public Utilities Commission. https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program/participating-in-self-generation-incentive-program-sgip

Brenner, S. (Sept 16, 2020). What the wildfires tell us about the shortcomings of California's electric grid. UCLA. https://newsroom.ucla.edu/releases/wildfires-california-electrical-grid-eric-fournier