Battery storage incentives, by state (2026)

Start here: in 2026, the federal purchase credit is gone. The Section 25D residential credit that gave home battery buyers 30% back expired on December 31, 2025. A cash buyer in 2026 gets $0 federal credit. That is true in every state.

So state and utility programs are now the entire incentive picture for a cash buyer. And that picture is uneven. As of October 2026, 10 of 50 states have a statewide battery purchase incentive open to general applicants: Arizona, Colorado, Connecticut, Delaware, Hawaii, Maryland, Minnesota, New Mexico, New York and Rhode Island. That means a state-run or state-required rebate, grant or state income tax credit a home battery qualifies for; in Arizona and New Mexico it applies only to a battery that is part of a solar system. California is not on that list right now, because SGIP's general-market residential budget is closed, and its income-qualified equity budgets are waitlisted or closed, except one open only to customers of publicly owned utilities in the SCE and PG&E program areas. The other 40 states have no statewide purchase incentive, though many have utility programs, and a few pay you over time instead. The rest, you have to look up for yourself, which is exactly what the end of this guide helps you do. For the national counts behind this guide, see our home battery statistics.

One honest warning before the state list: the most common way people get the incentive math wrong is by confusing two completely different things.

Two kinds of incentive, and why the difference matters

There are two types of battery incentive. They are not the same, and a battery can qualify for one, both, or neither.

• Purchase rebates and tax credits. These cut your upfront cost once. You buy the battery, and a program hands back a chunk of the price or a tax credit. California's SGIP is one. The late, lamented federal 25D credit was one. Maryland's energy storage grant is one.
• Performance or grid-services payments. These pay you over time for letting the utility dispatch your battery during peak demand. You keep the battery; the utility borrows its capacity a few times a season and pays you for it. ConnectedSolutions in the Northeast is the classic example. Most virtual power plant (VPP) and bring-your-own-battery programs work this way.

Why this matters: a salesperson may quote you a "$1,000 incentive" that is actually a multi-year grid-services payment, not money off the sticker. Both have value. But only a purchase rebate lowers what you finance and pay today. Keep them in separate mental buckets.

California: SGIP

SGIP is California's battery rebate program. As of October 2026, its general-market residential storage budget is closed in the PG&E, SCE, SoCalGas and Center for Sustainable Energy (San Diego area) territories. The Equity Resiliency tier is closed too, and the income-qualified equity budgets are open only for customers of publicly owned utilities in the SCE and PG&E program areas, and waitlisted for everyone else (SGIP step tracker, October 1, 2026). So for most Californians buying a home battery outright in late 2026, SGIP pays nothing until a general-market budget reopens.

SGIP, the Self-Generation Incentive Program, is overseen by the CPUC and run by four program administrators: PG&E, SCE, SoCalGas and the Center for Sustainable Energy (for the San Diego area). It has tiers:

• General Market tier (closed as of October 2026): roughly $150 to $200 per usable kWh of battery capacity. On a typical whole-home battery, that is a meaningful but not enormous chunk off the price.
• Equity Resiliency tier (closed as of October 2026): up to roughly $1,000 per usable kWh for qualifying homes, generally those in high fire-threat districts or on a medical baseline. At that level the rebate could cover most of the battery cost for the households who need backup most.
• Residential Solar and Storage Equity (income-qualified): $1.10 per Wh of storage on the current step; one budget open only to customers of publicly owned utilities in the SCE and PG&E program areas, the rest waitlisted or closed.

The catch, and it is a real one: SGIP funding is limited and runs in rounds, not guaranteed year-round. Budgets get allocated, fill up, and reopen. The tier you qualify for and whether money is currently available both change. So treat any SGIP number as "confirm current availability and your tier on the SGIP step tracker" before you count on it.

For the full picture, see SGIP, explained and our California home battery report.

Texas and Florida: no statewide rebate, check your utility

Both states sit in our calculator, so let us be direct. In 2026 there is no statewide battery purchase rebate in Texas or Florida. Buying a battery outright in either state, you should plan on no state-level money off the price.

That is not the whole story, though. Some individual Texas utilities and co-ops, and some Florida utilities, have run their own storage or bring-your-own-battery programs. These typically pay you for grid participation, the performance type above, rather than rebating your purchase. They are utility specific, the dollar amounts move, and programs open and close. So the honest instruction is: check with your specific utility for any current BYOB or VPP program, and do not assume a figure you saw last year still holds. We keep the sourced rate, net-metering, and incentive picture for each in our Texas state report and Florida state report.

States that have run residential storage incentives

Beyond the 10 states counted above, utilities and states have run other residential storage programs, and the counted ones have details worth knowing. The important caveat applies to every name below: verify each one directly on the program's site, because amounts and eligibility rules change often, and some programs pause or run out of funding mid-year. We are naming categories here, not quoting current dollar figures we cannot stand behind.

• Massachusetts has run ConnectedSolutions, and Connecticut runs Energy Storage Solutions. ConnectedSolutions is a performance payment: the utility pays you per season for letting it use your battery during peak events, which is grid-services money over time, not a purchase rebate. Connecticut's program pays performance payments too, and since April 1, 2026 it also pays a standard upfront incentive per kWh, which is why Connecticut is among the 10 states counted above.
• Maryland had a state energy storage income tax credit, which expired at the end of 2024. The Maryland Energy Administration now runs a statewide Residential and Commercial Energy Storage grant, with the FY27 round open. Confirm the residential award amount and status with MEA before counting on it.
• New York has NYSERDA's Residential Energy Storage Program for home batteries of 25 kWh or less, with Long Island residents served through PSEG Long Island; incentives come from limited budget blocks. Oregon and several other states have offered residential storage or solar-plus-storage programs at various points.

Notice the split: the Northeast ConnectedSolutions states pay you over time, while Maryland's grant cuts your upfront cost. Same goal, opposite mechanics. Sort any offer into the right bucket before you compare it to another program.

DC, Pennsylvania, and New Jersey

Three more places come up often enough to be worth stating plainly, and none of them puts cash on the hood of a battery in 2026. The same rule applies to all three: confirm on DSIRE and with the administrator before you count on anything.

• District of Columbia. No dedicated cash battery rebate. DC does have high-value SRECs and a solar and storage property-tax exemption for solar owners, but both of those work on the solar side of a project rather than cutting the battery's price. Net metering runs through Pepco for systems up to 1 MW. So the case for a battery here is resilience and self-consumption against a high electricity rate, not a rebate. Sourced rate, net metering, and program detail sit on our District of Columbia home battery incentives page; confirm current programs with DOEE.
• Pennsylvania. No state battery incentive at all. What Pennsylvania does have is full-retail-rate net metering at the investor-owned utilities, one of the more favorable export policies in this group, which already captures most of the bill value of solar. Put those two together and a Pennsylvania battery is justified mainly by backup rather than by a rebate or an export gap. The sourced picture is on our Pennsylvania battery incentives page.
• New Jersey. This is the one most likely to get misquoted at you. The Garden State Energy Storage Program exists, but the phase that is live and approved is the grid-scale, transmission-connected one. The distributed, behind-the-meter residential incentive, proposed at up to $400 per kWh in prior filings, is still in active NJBPU rulemaking through 2026 and is not yet an open residential program. There is no confirmed live residential dollar amount, so treat any quote that already banks $400 per kWh as a sales estimate and confirm status with NJBPU. New Jersey also has 1-to-1 net metering statewide, which means today's battery case leans on storm outages. Details on our New Jersey home battery incentives page.

How to actually find yours

Lists like this go stale. The reliable way to find what you qualify for is to check the live, canonical source and then verify locally. We also keep a report for every state with its average rate, net-metering status, and any battery incentive we can source.

• Start at DSIRE. The DSIRE database, the Database of State Incentives for Renewables and Efficiency, tracks state and utility energy incentives and is updated regularly. Search your state and your utility. It is the single best honest move on this page.
• Make your installer name the program in writing. A real incentive has a program name, an administrator, and eligibility rules. Ask for those in writing. If an installer cannot name the program, treat the number as a sales estimate, not a rebate.
• Confirm funding is open right now. Many programs, SGIP included, run on limited budgets that fill up mid-year. A program that exists is not the same as a program with money left this round.
• Separate a real rebate from an optimistic estimate. Salespeople round up and assume best-case tiers. Until you have the program name and confirmed current eligibility, do not bank on the figure.

A note on the federal route, because people ask: the only surviving federal credit is Section 48E, and it applies to commercial or third-party-owned systems. The single way a homeowner touches it in 2026 is a lease or PPA where the provider owns the battery and claims the credit, then prices that into your deal. See the federal battery tax credit in 2026 and battery leases and PPAs for how that works, and whether it is worth it.

Folding an incentive into your numbers

One modeling rule, because it changes payback math. A confirmed purchase rebate reduces your net upfront cost. Fold it into the cost side, not the savings side. A $3,000 state rebate makes the battery cost $3,000 less; it does not add $3,000 to your annual savings. Performance payments are different, those are ongoing income and belong on the savings side, but only at the realistic per-season amount, not a sales brochure maximum.

When you run the calculator, enter the battery's net price after any rebate you have actually confirmed. Leave unconfirmed incentives out until they are in writing with a program name. Honest inputs, honest payback.

The short version: no federal purchase credit in 2026, 10 of 50 states have a statewide purchase incentive open to general applicants, California's SGIP is closed to general applicants, with its income-qualified equity budgets mostly waitlisted, a handful of states pay you to share your battery, and the other 40 states offer no statewide purchase incentive. To see what your own state lists, check your ZIP in the Incentive Finder. Then look up the details on DSIRE, confirm funding is open, and run the real net number in the calculator.