Home battery incentives in 2026

With the federal homeowner tax credit gone for new installs, state and utility programs are now where the money is. Here is how to find them, and a few official examples.

First, the federal change

The IRS says the Residential Clean Energy Credit (often called 25D), which covered 30% of qualifying solar and battery storage costs, does not apply to property placed in service after December 31, 2025. If your system was installed in 2026, plan on no federal homeowner credit. If you are unsure about a system that straddled the deadline, check the IRS page and ask a tax professional.

The kinds of incentives that remain

Upfront rebates that lower the purchase price, usually paid through your installer.
Performance or "demand response" payments, where your utility pays you to let it draw on your battery during peak demand. These often require an eligible battery, internet connection and enrollment through the manufacturer or installer.
Leases or utility-owned batteries placed in your home for a monthly or one-time fee.
Low-interest loans and state tax credits or exemptions in some states.

Step 1: Search DSIRE

DSIRE, run by the NC Clean Energy Technology Center, is a free database of state, utility and local incentives for renewables and efficiency. Choose your state, then look for entries mentioning energy storage or batteries. DSIRE summarizes programs and links to the official source, which is the version to trust.

Step 2: Check your utility's website

Many battery programs are run by the electric utility itself and may not be widely advertised. Search your utility's site for "battery," "storage," "demand response" or "bring your own device."

Step 3: Ask installers, then verify

Installers usually know local programs and often handle the paperwork. Confirm any incentive they quote on the program's official website before you sign.

Examples of official programs (checked October 2026)

These show what is out there. They are not a complete list, rules change often, and some have waitlists or limited budgets.

Where	Program	What the official page says
Massachusetts	Mass Save ConnectedSolutions	For customers of Cape Light Compact, Eversource or National Grid. Pays $275 per kW of a battery's average contribution during summer events (June 1 to September 30, 3 to 8 p.m., up to 60 events, each up to three hours). Mass Save gives an example of up to $1,375 per year for a battery contributing 5 kW. Batteries are also eligible for up to $25,000 in 0% HEAT Loan financing.
Connecticut	Energy Storage Solutions	For Eversource and UI customers, through an eligible contractor. For applications on or after April 1, 2026: a residential enrollment incentive of $30/kWh ($130/kWh for "grid-edge" customers with more frequent outages), plus performance incentives of $300/kW per year for standard residential customers, $450 for underserved and $550 for low-income customers, over 10 years, based on actual performance during events.
Vermont	Green Mountain Power Bring Your Own Device	Customers who install an eligible battery (the list includes Tesla Powerwall 2.0 and 3.0, Enphase, FranklinWH and others) let GMP use it during peak events and receive an incentive; see GMP's page for current amounts. GMP says peak events average five to eight per month, three to six hours each, and the battery must stay connected to the internet.
California	Self-Generation Incentive Program (SGIP)	A long-running state battery incentive. Check the official SGIP site for which budgets are open, waitlisted or closed in your utility area before counting on it.

Program details summarized from the official pages linked above, checked Oct 31, 2026 (CDT). Always read the current terms before you sign anything.

South Dakota and other states without a big program

Many states, including South Dakota, do not have a large statewide battery rebate. That does not mean there is nothing: check DSIRE and ask your utility or electric cooperative directly about storage, demand response or load-management programs.

Questions to ask before you count on an incentive

Is my battery model on the eligible equipment list?
Is funding open now, or is there a waitlist or budget cap?
How many events per year will the utility use my battery for, and can I opt out of some?
Will the utility keep some charge in reserve for outages?
Do I need to keep it enrolled for a set number of years? What happens if I move?
Is the payment upfront, yearly, or a bill credit, and is it taxable? (Ask a tax professional.)

Next steps

Work out what you need before you shop for incentives: How to size a home backup battery and Whole-home vs critical-loads backup.

How to check your state, step by step

Search DSIRE. Enter your ZIP code and look for battery or energy storage programs.
Check your utility's website. Search for words like "battery", "storage", "demand response", "connected solutions" or "virtual power plant".
Check your state energy office. Some states run their own rebates or loan programs.
Ask installers. Local installers usually know which programs are open, waitlisted or closed right now.
Read the rules before you sign. Many programs need pre-approval, specific equipment, or enrollment before installation.

Questions to ask about any program

Is the program open now, or is there a waitlist?
Do I need approval before the battery is installed?
Which batteries and installers qualify?
How many events per year, and how much of my battery will be used?
Will I still have enough backup left for an outage during an event season?
How long must I stay enrolled, and what happens if I leave early?
Do I need an internet connection for the battery?

Common questions

Does letting the utility use my battery wear it out?

Every charge and discharge adds some wear. Check how the program's events count toward your battery warranty, and read the warranty's throughput or cycle terms.

Can I combine programs?

Sometimes. Some states allow an upfront rebate plus ongoing performance payments; others do not. The program rules will say.

Incentive programs change often. This page is general information, not tax or legal advice. Check every program's current terms on its official site.