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Battery storage for homeowners

Battery storage for homeowners

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Eligibility
SMUD program: SMUD residential customers with Tesla Powerwall on Solar and Storage Rate, enrolled within 90 days of PTO. PG&E options: income-qualified households (SGIP RSSE waitlist), fire-risk areas (RSI free battery, $500 portable rebate).
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Home battery rebates depend on your utility. SMUD customers can still get ~$5,400 per Tesla Powerwall up front plus $110/quarter through My Energy Optimizer Partner+ (must enroll within 90 days of PTO). PG&E customers have far fewer options in 2026: the federal 30% tax credit was repealed end of 2025, SGIP general/equity tiers are closed, and SGIP RSSE is waitlist-only. PG&E offers a free permanent battery via the Residential Storage Initiative and up to $500 for portable backup.
Value
SMUD: up to $5,400 per Powerwall + $110/qtr ongoing. PG&E: free permanent battery via RSI (if eligible) or up to $500 for portable backup. Federal 30% tax credit ended 12/31/2025.
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Almacenamiento de baterías para propietarios de vivienda - SMUD ofrece incentivos de hasta $10,000 para sistemas de almacenamiento de baterías residenciales, más pagos trimestrales continuos. Los sistemas permiten almacenar energía solar, reducir facturas eléctricas y proporcionar energía de respaldo durante apagones.
URL
https://www.smud.org/Going-Green/Battery-storage/Homeowner
Last verified 2026-05-17.
A home battery stores electricity so you can use it later — during expensive evening hours, or when the power goes out. If you already have rooftop solar, a battery helps you keep more of what your panels make. The rebates and tax breaks you can get depend on which utility serves your home, so this guide is split by utility.

Who this is for

  • Sacramento area (SMUD customers): real cash incentives are still available in 2026 — keep reading.
  • PG&E customers (Nevada County, most of NorCal): the big state and federal rebates closed at the end of 2025. Your options in 2026 are much narrower. See the PG&E section below.
  • Renters / people who don't own their roof: most of these programs require you to own the home and the equipment. Skip to "If you rent" at the bottom.

SMUD customers — battery incentives still active

SMUD (Sacramento Municipal Utility District) runs the My Energy Optimizer Partner+ program. If you install a qualifying home battery and let SMUD use it during peak demand, they pay you up front and every quarter after that.

What you can get

  • Up-front payment: about $5,400 per Tesla Powerwall 3 (calculated at $500 per kWh of battery capacity, minus a 20% reserve hold). Stacks up to roughly $10,000 max if you install two batteries.
  • Ongoing payment: $110 per quarter per battery ($440/year for one battery; $220/quarter for two; $330/quarter for three or more).
  • Backup power: SMUD always leaves at least 20% of your battery reserved so you still have power if the grid goes down during an event.

Who qualifies

  • You're a SMUD residential customer.
  • You own (or are installing) a Tesla Powerwall 2, Powerwall+, Powerwall 3, or Powerwall 3 with DC Expansion. Other brands aren't eligible for the quarterly payment as of 2026.
  • You're enrolled in SMUD's Solar and Storage Rate (SSR).
  • You enroll within 90 days of your Permission to Operate (PTO) date — this is the hard deadline. Miss it and the up-front payment is gone, no exceptions.
  • Multifamily owners (duplex, condo, apartment) can qualify, but single rental units where the tenant pays the bill are not eligible yet.
  • MED Rate (Medical Equipment Discount) customers are not eligible.
[Source: smud.org/Going-Green/Battery-storage/Homeowner (accessed 2026-05-17)]

How to apply

  1. Get bids from at least two licensed solar/battery installers. SMUD recommends comparing offers before you sign anything.
  1. Your installer files the interconnection application through SMUD's PowerClerk portal. They handle the paperwork.
  1. Once installed and inspected, SMUD issues your Permission to Operate (PTO).
  1. Within 90 days of PTO, enroll your battery in the Tesla Virtual Power Plant at tesla.com/support/energy/virtual-power-plant/smud, or email MyEnergyOptimizer@smud.org to confirm enrollment.
  1. SMUD pays the up-front incentive about 8–12 weeks after enrollment is complete.

Common pitfalls

  • Missing the 90-day window after PTO is the #1 way people lose the $5,400. Put it on the calendar the day PTO is issued.
  • Buying a non-Tesla battery locks you out of the ongoing quarterly payments in 2026. Other brands are "coming" but not paying yet.
  • Adding battery to existing solar — no interconnection fee. New solar + battery together — there is a one-time interconnection fee; your installer should quote it.

PG&E customers (Nevada County and most of NorCal) — slim pickings in 2026

If you're on PG&E, the big rebates that used to make home batteries affordable have mostly ended. Here's the honest picture:

What ended December 31, 2025

  • Federal 30% Residential Clean Energy Credit (the one that knocked $3,000–$5,000 off a battery on your taxes). Repealed by the One Big Beautiful Bill Act, signed July 4, 2025. Gone for any system placed in service after 12/31/2025 — no phase-down, no partial credit. [Source: irs.gov / OBBBA text via rsmus.com (accessed 2026-05-17)]
  • SGIP General Market and Equity tiers. California's main battery rebate. Closed when funds ran out at end of 2025. [Source: cpuc.ca.gov self-generation-incentive-program (accessed 2026-05-17)]

What's still available in 2026

  • SGIP RSSE (Residential Solar and Storage Equity, AB 209 budget) — for income-qualified households (generally ≤80% Area Median Income). The budget is fully reserved as of April 2026 and only accepting waitlist applications. No confirmed reopen date. Worth getting on the list anyway: cpuc.ca.gov self-generation-incentive-program.
  • PG&E Generator & Battery Rebate — up to $500 for a portable battery or generator, aimed at people in fire-risk areas who need backup during PSPS outages. Must apply within 12 months of purchase, program runs through 12/31/2026. [Source: pge.com generator-and-battery-rebate-program (accessed 2026-05-17)]
  • Commercial leases / PPAs — if your installer offers a third-party-owned battery (you lease it instead of buying), the installer can still claim the 30% federal credit under Section 48E and pass savings through in the lease price. Ask installers directly: "Is this a lease or PPA where you keep the tax credit?"

What batteries cost without rebates

In 2026, a typical home battery install runs $12,000–$20,000 depending on size and brand. Without the federal credit, that's the price you pay. A small portable backup battery (the kind that powers a fridge for a day) is $500–$1,500 — much smaller but enough for an outage. Get three written bids before signing. Multiple bids is the single best protection against being overcharged.

If you rent

Almost all the programs above require you to own the home and the equipment. Options for renters:
  • A portable power station ($300–$1,500) can power a fridge, CPAP machine, or phones during an outage. PG&E's $500 generator-and-battery rebate may apply if you live in PG&E's fire-risk area.
  • If you or someone in your home depends on medical equipment, ask PG&E about the Medical Baseline program — it doesn't provide a battery, but it lowers your rate and flags your address for priority restoration.

Where to get help

  • PG&E customer service: 1-800-743-5000
  • CPUC SGIP info line: 1-866-675-6623

Sources

  • SMUD My Energy Optimizer Partner+ Terms and Conditions, updated 04/03/2026
  • One Big Beautiful Bill Act (signed 2025-07-04) — repeal of IRC §25D Residential Clean Energy Credit for property placed in service after 2025-12-31