Rebates, tax credits, and utility incentives you may qualify for.
Last verified: 2026-06-08 · Well-sourced
Incentive snapshot
Section 25D Residential Clean Energy Credit (battery storage)
Expired Dec 31, 2025. For 2023–2025: 30% of total installed cost, no cap (battery capacity at least 3 kWh). EXPIRED: This federal credit ended Dec 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Expenditures made after Dec 31, 2025 do not qualify — for §25D, the IRS treats the expenditure date as the date the installation is placed in service (completed), not the date of payment. A homeowner who paid a deposit in 2025 but whose system was placed in service in 2026 does not qualify. For installations placed in service during 2023–2025, the credit applied to battery storage systems with a rated capacity of at least 3 kilowatt-hours installed in a U.S. home used by the taxpayer as a residence (existing homes and new construction; principal residence not required; rentals not occupied by the taxpayer did not qualify). Standalone batteries (not paired with solar) were explicitly eligible from Jan 1, 2023 onward. The credit was nonrefundable with carryforward. Homeowners with eligible 2025 placed-in-service installations may still claim the credit on their 2025 federal tax return. Verify with a qualified tax professional.
California Self-Generation Incentive Program (SGIP) — residential battery storage
As of 2026-06-08, only the Residential Solar and Storage Equity (RSSE) AB 209 budget remains open for new applications, and that budget is fully reserved — new applications are placed on a waitlist served through attrition of cancelled projects. Per-kWh rates by tier (for context — only RSSE accepts new apps in 2026): RSSE $1,100/kWh storage + $3,100/kW solar; Equity Resiliency $1,000/kWh; Equity $850/kWh; San Joaquin Valley Residential $1,100/kWh; Small Residential Storage / General Market $150/kWh. Per-project totals depend on installed battery capacity (kWh) and tier eligibility. Administered by the California Public Utilities Commission (CPUC) and delivered through utility program administrators (PG&E, Center for Sustainable Energy / SDG&E territory, SoCalGas, SCE; LADWP customers are not eligible). Budget status as of 2026-06-08: per SGIP program administrator (CSE / sgipsd.org), 'as of December 31, 2025, all new application submissions are strictly available to the Residential Solar and Storage Equity (RSSE) AB 209 budget. At this time, all available RSSE AB 209 funding has been reserved.' New RSSE applications are placed on a waitlist in order received and funded through attrition of cancelled projects. The ratepayer-funded General Market, Equity, and Equity Resiliency budgets are not accepting new applications. Tier rates for reference (applicable to reservations made while budgets were open): (1) Residential Solar and Storage Equity (RSSE) — $1,100/kWh storage plus $3,100/kW solar; low-income residential customers; AB 209-funded; reservation window opened June 2, 2025. (2) Equity Resiliency — $1,000/kWh; IOU residential customers in high fire-threat districts and/or medical baseline / income-qualified. (3) Equity — $850/kWh; income-qualified IOU residential customers. (4) San Joaquin Valley Residential — $1,100/kWh; PG&E and SCE pilot footprint. (5) Small Residential Storage / General Market — $150/kWh. Reservations require a one-year completion window and enrollment in a qualified Demand Response program. Tier eligibility, income documentation, HFTD-tier residency, and budget-availability status must be verified against the current SGIP Handbook and the customer's utility administrator before any contractor work begins.
Installed cost for a single-family SoCal home adding a 10–15 kWh residential lithium-ion battery (Powerwall 3, IQ Battery 5P, FranklinWH) paired with new or existing solar, pre-incentive. Range covers a single battery at the low end through a paired-unit configuration at the high end. Excludes service-panel upgrades and major electrical rework.
As of 2026-05-30, SDG&E's default residential plan is TOU-DR1, a three-period time-of-use plan with on-peak / off-peak / super off-peak windows and a 4-9 PM peak. TOU-DR2 offers a simpler two-period structure with the same 4-9 PM peak. Households with EVs, batteries, or heat pumps may benefit from TOU-ELEC (designed for electrified homes), or from EV-specific plans: EV-TOU-5 (whole-house TOU with the lowest overnight pricing for home charging and the Solar Billing Plan) and EV-TOU (a separate-meter option). TOU-DR-P and EV-TOU-5-P are event-based variants that add Reduce Your Use events (up to 18/year) with a $1.16/kWh event adder during 4-9 PM. Plans require 12-month commitments; homeowners should verify the current default and rate cards on the SDG&E pricing plans page before assuming a peak window or rate.