Amid rising prices and increasingly frequent extreme weather events, some homeowners are turning to batteries both for savings and resilience. According to residential electrification marketplace EnergySage, 67 percent of residential battery installers reported that their customers were motivated by resilience and emergency backup power in 2025. To support the growing need for resilient home energy solutions, state and federal governments have expanded rebates, tax credits and incentives to make residential battery adoption affordable and attractive. The 2022 Inflation Reduction Act (IRA) significantly boosted this technology through the clean energy tax credits. The Residential Clean Energy Credit (25D) covered 30 percent of the cost of installing renewable energy systems such as solar, wind, geothermal, fuel cells, and battery storage technology. According to the Internal Revenue Service, almost 49,000 households used the 25D credit to install batteries in 2023.
In July 2025, the new Congress signaled a shift in priorities with the One Big Beautiful Bill Act (OBBBA), rolling back numerous clean energy incentives. Notably, the OBBBA moved up the expiration date of the 25D credit to December 31, 2025, shortening the original phase‑out schedule. As federal support winds down, states and utilities are stepping in to fill the gap and sustain momentum in residential energy storage deployment. This digest highlights some key examples of incentive programs that support residential battery adoption and installation.
California’s Self-Generation Incentive Program (SGIP)
Administered by the California Public Utilities Commission (CPUC), the Self-Generation Incentive Program (SGIP) provides incentives for installing solar and battery storage at residential and non-residential properties. Initially extended to 2026 under SB700, the program has expanded in recent years. In 2022, the AB209 Energy and Climate Change trailer bill updated the SGIP to authorize $900 million in funding for fiscal year 2023/2024 to support residential solar and storage, with 70 percent of the funding for low-income households. CPUC allocated over $1 billion in funding through 2024, with roughly 75 percent directed to battery storage. In June 2025, the CPUC launched the Residential Storage and Solar Equity program, a $280 million initiative under the SGIP that helps California’s low-income households install battery storage and solar panel systems. Through this program, customers can receive up to $1,100 per kilowatt-hour (kWh) of storage and $3,100 per kilowatt (kW) of solar. According to the CPUC, this could cover close to 100 percent of the cost of the system. As of 2023, approximately one-third of all residential batteries in the United States were installed in California.
Wattsmart Battery Program
The Rocky Mountain Power Wattsmart Battery Program offers customers in Idaho, Utah, and Wyoming upfront residential battery incentives of $400 per kW, capped at $2,000 per household (based on a 4-year commitment). Beginning in year two of the program, participants also receive an annual bill credit of $15 per kW. For more information about the program and how to apply, visit their website.
Mass Save Battery Incentives
Mass Save offers several incentives to Massachusetts residents to install battery storage systems. Through ConnectedSolutions, customers can earn $275 per kW of their battery’s average contribution during times of peak demand. To qualify, residents must be an existing customer of Cape Light Compact, Eversource, or National Grid and have one of the eligible systems with an inverter size under 50 kW. Battery systems must either be installed with a new solar panel system, added to an existing solar system, or installed as a stand-alone battery storage system.
Additionally, with a Mass Save HEAT Loan, customers can get 0% financing up to $25,000 for qualifying energy efficiency upgrades, including residential batteries.
For more information on state and utility incentives along with other state policies, check out our Spotlight States dashboard.
At a time when affordability is a key concern, programs to reduce the upfront cost of residential batteries are bound to help homeowners who are hoping to also save ongoing electricity costs by storing (and, if paired with solar, generating their own) power for high-cost periods.
