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We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
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Home batteries cost $8,500 to $17,500 installed, and the federal tax credit for homeowners is gone. Before you spend five figures, let's figure out if a battery actually makes financial sense for your situation, or if you're better off letting the grid be your free battery.
These are the situations where a battery genuinely makes financial or safety sense. If two or more apply to you, a battery is likely a strong investment.
Your home stays on when the grid goes dark
Buy low, sell high with your own electricity
Get paid to share stored energy during grid peaks
Use your own solar instead of selling it cheap
Charge your car from the sun, even at night
Being honest costs us sales, but it earns your trust. Here are the situations where a battery is not the right investment today.
Rare, short outages don't justify $10,000+
The grid IS your free battery
Batteries extend solar payback by 3-5 years
Flat-rate utilities eliminate TOU arbitrage value
Not enough excess solar to fill a battery
Find your situation below. If you have multiple “Yes” scenarios, a battery is almost certainly worth it. If everything is “No,” save your money.
| Your Situation | Need Battery? | Why |
|---|---|---|
| Frequent power outages (3+/year) | Yes | Backup value alone justifies the cost for safety and convenience |
| Medical equipment at home | Yes | Battery provides instant, silent backup critical for CPAP, oxygen, refrigerated meds |
| ConnectedSolutions area (MA/RI) | Yes | $2,250-$3,250/year in demand response revenue dramatically improves ROI |
| TOU rates with >$0.15 spread | Yes | Daily arbitrage of $1.50-$3.00 adds $450-$900/year in savings |
| EV owner with solar + TOU | Yes | Charge EV from stored solar at off-peak rates, saving $400-$1,200/year |
| Off-grid or semi-off-grid goals | Yes | Battery + solar is the only viable path to energy independence |
| CT or VT with new DR programs | Maybe | Programs are newer with less track record; value is real but still evolving |
| NEM at 80-85% retail (NH, RI) | Maybe | Self-consumption savings exist but are modest ($120-$200/year) alone |
| Storm-prone area (1-2 outages/yr) | Maybe | Backup has value but cost-per-hour of backup may favor a generator |
| 1:1 net metering (MA, NJ, ME) | No | Grid is your free battery with 100% efficiency and unlimited capacity |
| Flat-rate utility, rare outages | No | No TOU arbitrage, no DR revenue, minimal backup need = poor ROI |
| Budget-conscious solar buyer | No | Install solar now, add battery later when prices drop or programs expand |
| Small solar system (<6 kW) | No | Not enough excess generation to fill a battery daily |
| Reliable underground utilities | No | 99.97%+ uptime means backup value is negligible |
Solar companies love to gloss over battery ROI. Here's the real, unvarnished financial picture so you can make an informed decision.
Demand response programs (ConnectedSolutions) are the difference between a strong investment and a break-even proposition. Without DR, batteries extend payback by 3-7 years.
The Section 25D residential clean energy tax credit expired on December 31, 2025. In 2024, homeowners could claim 30% of battery costs ($3,000-$5,250 savings). In 2026, that credit is $0. Every dollar of your battery purchase comes out of pocket. This is the single biggest change to battery economics in 2026 and makes demand response programs and TOU optimization even more critical for positive ROI.
Battery ROI varies dramatically by state. Demand response programs are the single biggest differentiator.
ConnectedSolutions $275/kW + TOU rates + backup
ConnectedSolutions $225/kW + REG program + 80% NEM
Grid Edge DR launching + TOU available + high rates
GMP battery program + Bring Your Own Battery credits
ERCOT price volatility + backup value (storms) + some TOU
No DR program + ~85% NEM + limited TOU availability
Strong 1:1 NEM + no DR program + reliable grid
1:1 NEM (rooftop) + no DR program + rural backup value only
No state battery program + moderate NEM + flat rates common
Massachusetts and Rhode Island are the only states where batteries consistently deliver strong ROI thanks to ConnectedSolutions demand response payments. In all other states, battery value depends heavily on your specific outage frequency, rate structure, and whether TOU rates are available. If you live in a “LOW” state, the best strategy is usually: install solar now, add a battery later when prices drop or new programs launch.
If a battery doesn't make sense today, these alternatives can bridge the gap until prices drop or new programs launch in your area.
If backup power is your only need, a natural gas or propane standby generator costs 40-60% less than a battery. It provides unlimited runtime and can power your entire home including central AC. The trade-offs: noise, emissions, fuel costs, and $200-$400/year in maintenance. It also provides zero financial return beyond backup value, unlike a battery with TOU or DR benefits.
Smart panels from Span ($4,500-$5,500) and Lumin ($3,500-$4,500) let you monitor and control every circuit in your home from an app. They optimize energy usage, prioritize loads during partial backup, and prepare your panel for future battery addition. A smart panel today plus a battery later is a common and cost-effective two-step approach.
Battery prices are declining 8-12% per year as manufacturing scales up. A $13,000 battery today could cost $10,000-$11,000 by 2028. New chemistries (sodium-ion) promise even steeper drops. However, in ConnectedSolutions states, the 2-3 years of DR revenue you miss ($6,000-$10,000) far exceeds the savings from waiting. In non-DR states, waiting is a perfectly rational strategy.
If you cannot install rooftop solar (rental, condo, shading), community solar lets you subscribe to a local solar farm and receive credits on your electric bill. No equipment, no installation, no maintenance. Typically saves 5-15% on your bill with zero upfront cost. Available in MA, RI, CT, NJ, ME, NH, and expanding. Not a battery alternative per se, but solves the broader question of “how do I go solar?” without hardware.
It depends entirely on your situation. With the Section 25D residential ITC expired as of December 31, 2025, batteries cost their full installed price ($8,500-$17,500) with no federal offset. However, in states with demand response programs like Massachusetts and Rhode Island, the $2,250-$3,500 in annual ConnectedSolutions revenue can pay back a battery in 4-6 years even without the tax credit. In states without DR programs or TOU rates, batteries are harder to justify financially and are mainly a backup power purchase.
Installed prices range from $8,500 for an Enphase IQ 5P (5 kWh) to $17,500 for a FranklinWH aPower 2 (15 kWh with aGate controller). The most popular options are the Enphase IQ 10C at $13,000 (10 kWh) and Tesla Powerwall 3 at $15,400 (13.5 kWh). Cost per kWh ranges from $1,140 (Tesla) to $1,700 (Enphase 5P). There is no federal tax credit available for residential battery purchases in 2026.
Yes, and this is often the smartest strategy. Modern Enphase microinverter systems and SolarEdge string inverter systems are designed to be battery-ready. A retrofit typically costs $1,000-$2,000 more than installing solar and battery together due to the additional electrician visit and potential panel upgrades. If you are budget-constrained, install solar now and plan for a battery addition in 2-3 years when prices have dropped further.
A 10 kWh battery running essential loads (refrigerator, lights, Wi-Fi router, phone chargers, and a few outlets) typically lasts 8-12 hours. A 13.5 kWh Tesla Powerwall 3 can power those same essentials for 12-18 hours. For whole-home backup including AC, you need 2+ batteries or a 15 kWh FranklinWH aPower 2. If paired with solar panels, the battery recharges during the day, providing indefinite backup for essential loads during extended outages.
Yes, a standby generator costs $3,000-$8,000 installed versus $8,500-$17,500 for a battery. Generators also provide unlimited runtime as long as fuel is available. However, generators require fuel storage, produce noise and emissions, need regular maintenance ($200-$400/year), and take 10-30 seconds to start. Batteries switch on instantly, are silent, emission-free, and need zero maintenance. If backup is your only need and cost is the priority, a generator wins. If you also want TOU savings, demand response revenue, or silent instant backup, a battery is the better investment.
ConnectedSolutions is a demand response program in Massachusetts and Rhode Island where utilities pay you to share stored battery energy during grid peak events (typically 20-60 hours per summer). Eversource pays $275 per kW of battery capacity in summer plus $50/kW in winter. National Grid pays $225/kW plus $50/kW winter. A 10 kW battery system can earn $2,250-$3,250 per year. This is the single biggest financial driver for home batteries in the Northeast and can pay for the battery in 4-6 years.
Modern LFP (lithium iron phosphate) batteries last 15-20 years with proper use. They degrade at roughly 2% per year, meaning a 10 kWh battery retains about 8 kWh of usable capacity after 10 years. Warranties cover 10 years (Tesla) to 15 years (Enphase, FranklinWH). The Enphase IQ 10C guarantees 6,000 cycles, enough for about 16 years of daily cycling. Battery replacement costs will likely be 40-60% lower than today's prices by the time replacement is needed.
Battery prices are declining roughly 8-12% per year. A $13,000 battery today might cost $10,000-$11,000 by 2028. However, waiting means you miss 2-3 years of demand response revenue ($2,250-$3,500/year in MA/RI), TOU savings, and backup protection. In ConnectedSolutions states, the revenue you earn while waiting would more than offset the price premium of buying now. In states without DR programs, waiting is a reasonable strategy since the financial returns are modest today.
If you have 1:1 net metering (MA, NJ, ME rooftop), you probably do not need a battery for financial reasons. Full retail credits mean the grid effectively stores your solar for free. A battery only adds value for backup power or demand response revenue. If you have reduced net metering (NH at ~85%, RI at ~80%), a battery captures some of the lost export value, but the savings alone ($120-$200/year) rarely justify the cost. In those states, you need additional value streams like DR programs or TOU rates to make the battery math work.
For essential load backup (fridge, lights, Wi-Fi, medical devices): 10 kWh is usually sufficient (8-12 hours of backup). For partial home backup including a mini-split AC: 13.5 kWh is recommended. For whole-home backup including central AC, EV charger, and electric range: 20-30 kWh (two or more battery units). Match your battery size to your solar system output as well. A 6-8 kW solar system pairs well with 10-13.5 kWh. A 10+ kW system can fill a 15+ kWh battery. Visit our battery comparison guide for detailed specs on each option.
Every home is different. Our energy advisors will analyze your utility rates, outage history, and available programs to give you an honest recommendation, even if that recommendation is “skip the battery.”
No pressure, no obligation. If a battery is not right for you, we will tell you.