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Battery storage incentives in 2026
The federal residential credit covered battery storage and it ended for expenditures made after December 31, 2025 — but several state and utility battery programs outlived it. Of the 12 states on this site, five have at least one residential storage program, carrying eight programs between them.
The more useful finding is that they do not pay in the same way. Those eight programs use four structurally different payment shapes — up front, per kilowatt-hour of capacity, per kilowatt discharged on a repeating cadence, and one where the utility owns the battery and bills you monthly for it.
Is there still a tax credit for home batteries?
Not a federal one for a homeowner who buys. Battery storage with a capacity of at least 3 kilowatt-hours qualified under the federal residential clean energy credit at § 25D, and that credit no longer applies to expenditures made after December 31, 2025. As with solar, the expenditure is treated as made when the original installation is completed, so paying in 2025 for a battery commissioned in 2026 does not qualify, and unused credit from a system completed on or before December 31, 2025 still carries forward if you file Form 5695 with the 2025 return. What survives is at state and utility level, and it is patchier and stranger than the federal credit was — some of it is not a rebate at all but a payment for letting the utility use your battery.
Verified against primary sources on .
What is actually on offer
This table is generated from the same data that drives the state pages, so every entry carries the date it was last checked against a primary source and nothing appears here that is not also on a state page.
| State | Program | What it pays | Status | Checked |
|---|---|---|---|---|
| Arizona | APS Storage Rewards pilot | $110/kW per event season | Open now | |
| Arizona | SRP Battery Partner | $55/kW twice a year | Open now | |
| California | SGIP Residential Solar and Storage Equity | $1,100/kWh of storage | Waitlisted | |
| California | SGIP Small Residential Storage | $150/kWh of storage | Closed for the year | |
| Minnesota | Minnesota battery energy storage incentive (outside Xcel territory) | $250/kWh of storage | Open now | |
| Minnesota | Xcel Energy storage equipment incentive (solar plus storage) | $175/kWh of storage | Open now | |
| Missouri | Evergy Missouri West Residential Battery Energy Storage Pilot | No direct payment | Gone | |
| Utah | Rocky Mountain Power Wattsmart Battery program | $2,000 up front | Open now |
The first thing to notice is the absence. Seven of the 12 states on this site have no residential storage program at all — not a closed one, not an expired one, none. Storage support is not a national baseline with local variations; it is a handful of states doing something and most doing nothing.
Four different ways of paying for the same box
This is the part that no other battery explainer we have seen gets to, because it only becomes visible if you read the programs as filed rather than as summarized. The eight programs above use four genuinely different payment structures, and the difference changes what you are actually agreeing to.
Per kilowatt-hour of capacity — the one people expect
California's Self-Generation Incentive Program and Minnesota's storage incentives both pay against the size of the battery, in dollars per kilowatt-hour of capacity, usually with a cap. This is the shape most people picture when they hear "battery rebate": a discount proportional to how much battery you bought.
A flat payment up front — Utah
Rocky Mountain Power's Wattsmart Battery program pays a capped flat amount
rather than anything per unit of capacity. It is the reason this site's data
model has an upfront amount type at all: forcing it into a
per-kilowatt-hour figure would have printed a number the utility does not
publish, which is exactly the sort of confident-wrong figure the whole project
exists to avoid. Utah is here.
Per kilowatt discharged, repeatedly — Arizona
Arizona's two programs are the interesting ones, and they are not rebates at all. APS Storage Rewards pays per average kilowatt discharged across an event season; SRP Battery Partner pays per average kilowatt twice a year. You are not being paid for owning a battery. You are being paid for letting the utility discharge it when the utility wants to.
The utility owns the battery and you pay a monthly fee — Missouri
Evergy Missouri West's residential battery pilot inverted the whole arrangement: the utility owned, installed, maintained and operated the battery on the customer's premises, and the participant paid a monthly charge for it. That is not an incentive in the ordinary sense, and this site records it as a storage entry with no direct payment because that is what it was. It was also capped at fifty customers in one utility's territory, and its funding authority ran out at the end of 2025. Missouri is here.
Two things worth knowing that are not on the table
A closed program can still have money in it. California's SGIP is the clearest case: the general-population residential storage budget has been closed at all four program administrators since February 2025 with a substantial balance still unspent, while the equity budgets aimed at lower-income and disadvantaged-community customers remained open at much higher rates. If you read only "SGIP is closed" you would miss that the money that remains is deliberately pointed somewhere specific. SGIP program administrators The California page has the figures.
Storage is starting to appear in tax law, at thresholds far above a house. Nebraska amended its nameplate capacity tax on July 18, 2026 to bring energy storage resources into the tax — at 100 kilowatts or more, which is far above any household battery, and with customer-generators expressly exempt in any case. Neb. Rev. Stat. § 77-6203 It is worth knowing mainly as a signal: storage is becoming a category that legislatures name separately rather than treating as part of a solar system.
What changed federally, and what it means for a battery
The residential credit at § 25D covered qualified battery storage of at least 3 kilowatt-hours, and it is gone for expenditures made after December 31, 2025. 26 U.S.C. § 25D The commercial credit at § 48E survives on its own timeline, which matters because it is claimed by whoever owns the equipment — so a third-party-owned battery sits in a different part of the tax code from one you buy. That split is the subject of the buy-versus-lease page, and what survives federally is here.
What this page does not cover yet
- What a battery costs. This site publishes what programs pay, not installed prices. A rebate expressed per kilowatt-hour of capacity cannot be turned into a percentage of cost without a price, and we do not have a sourced one.
- Dispatch terms for the virtual power plant programs. How often a utility may call on your battery, how deeply it may discharge it, and what reserve is left for your own outage protection are the terms that decide whether these programs are worth joining, and we have recorded the payment structures rather than read the participation agreements.
- Whether any state has added a storage program since its page was last checked. Each row above carries its own verification date; a state with no row has no program as of that state's last sweep.
- Thirty-eight states. The table covers the 12 states with data files here. Several states not on it are known to have storage programs; their absence means we have not read them.
- How § 48E applies to a third-party-owned residential battery. We have set out the ownership split federally but have not verified how it works for storage specifically.
Each of those is queued. When one is verified it will appear above with its own date.
Common questions
Does the federal tax credit still cover home batteries?
No, not for a homeowner who buys. Battery storage with a capacity of at least 3 kilowatt-hours qualified under the federal residential clean energy credit at § 25D, and that credit does not apply to expenditures made after December 31, 2025. The expenditure is treated as made when the original installation is completed, so paying in 2025 for a battery commissioned in 2026 does not qualify. Unused credit from a system completed on or before December 31, 2025 still carries forward — file Form 5695 with the 2025 return to preserve it. The commercial credit at § 48E survives on its own timeline and is claimed by whoever owns the equipment, which is why a third-party-owned battery sits in a different part of the tax code.
Which states still pay for home batteries?
Of the 12 states on this site, five have at least one residential storage program, carrying eight programs between them — and seven have none at all. The table on this page lists every one with what it pays, its current status and the date it was last checked against a primary source. Note that this covers the states with data files here rather than the whole country; several states not on the list are known to have storage programs we have not yet read.
What is a virtual power plant payment and how is it different from a rebate?
A rebate pays you for buying a battery. A virtual power plant payment pays you for letting the utility use it. Arizona has two examples: APS Storage Rewards pays per average kilowatt discharged across an event season, and SRP Battery Partner pays per average kilowatt twice a year. The payment is measured on power actually delivered when the utility calls, not on the size of the battery you installed, and it repeats rather than arriving once. That means the rate is meaningless without its cadence, and the terms that matter most are how often the utility may call on the battery, how deeply it may discharge it, and what is left for your own backup during an outage.
Can a battery program be closed and still have money in it?
Yes, and California is the clearest example. The general-population residential storage budget under the Self-Generation Incentive Program has been closed at all four program administrators since February 2025 with a substantial balance still unspent, while the equity budgets aimed at lower-income and disadvantaged-community customers remained open at considerably higher rates. Reading only "the program is closed" would miss that the remaining money is deliberately directed somewhere specific. The California state page carries the figures with the date they were read.
Is a battery worth it without the federal credit?
That depends on things this page cannot tell you, and we would rather say so than produce a number. Two of them are structural and worth checking first. If you are in a state where exported electricity is worth much less than retail — net billing, or the hybrid arrangement most states on this site use — then a battery converts low-value exports into high-value self-consumption, and that is a real economic argument independent of any rebate. And if your state has a virtual power plant program, part of the return comes from dispatch payments rather than from bill savings, which is a different risk profile. What we have not got is a sourced installed cost, so we do not publish paybacks.
Do batteries get taxed?
Rarely at household scale, but it is starting to appear in statute. Nebraska amended its nameplate capacity tax with effect from July 18, 2026 to bring energy storage resources into the tax — at a threshold of 100 kilowatts or more, far above any household battery, and with customer-generators expressly exempt in any case. The significance is less the tax than the drafting: legislatures are beginning to name storage as its own category rather than treating it as part of a solar installation, which is usually the point at which rules specific to it start to appear.
Primary sources
Every one of these was opened and read on the date shown. None of it is copied from DSIRE, EnergySage, or any other aggregator.
- 26 U.S.C. § 25D, U.S. Code (prelim), Office of the Law Revision Counsel read July 29, 2026
- Self-Generation Incentive Program administrators (California) read July 28, 2026
- Neb. Rev. Stat. § 77-6203 (nameplate capacity tax) read July 29, 2026