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If you are considering backup energy systems for your home, now is the perfect time to invest in a system that offers both security and savings, thanks to the federal tax credit for backup batteries. This tax credit is available for improvements to your home, whether you rent or own it. It also applies to new or existing homes in the U.S.
However, the 30% federal solar tax credit for owned residential systems ends December 31, 2025.
Navigating the installation process can be overwhelming. At Empower Home Services, we make the process simple, transparent, and designed to save you time. Here is how you can take advantage of the full federal incentive and install a backup battery this year.
The 30% tax credit expires at the end of this year. Get started today or call (888) 705-0535 to schedule your free quote.
What Is a Backup Battery, and Why Do You Need One?
Backup batteries store energy generated from your solar panels (or from the grid) and release it when you need it most, such as during power outages or high-demand periods. These systems allow you to keep your lights on, your appliances running, and your home safe, without having to rely solely on the grid.
Here are some key reasons why homeowners are turning to backup batteries:
- Energy security: Power outages can happen at any time. Backup batteries ensure you’re prepared.
- Lower electricity bills: By using stored energy during peak demand times, you can avoid high energy rates.
- Environmental impact: Backup batteries paired with solar panels make your home more energy-efficient, reducing your carbon footprint.
Key Changes to State Buyback Programs
- Decreasing compensation: Many states have drastically reduced the rates they pay for energy sent back to the grid. In some states, the buyback rate has dropped to as little as 3-5 cents per kilowatt-hour, whereas residential electricity rates may be as high as 15-30 cents per kilowatt-hour.
- Policy changes: Some states have transitioned to “fixed-rate” policies, meaning the utility companies pay a flat rate regardless of how much energy is produced. This has made it less profitable for homeowners to rely on net metering alone.
With these changes, it’s clear that the financial incentive to sell energy back to the grid is diminishing. That makes now a great time to install a backup battery for your home. Not only will it give you peace of mind during power outages, but it will also help you become less reliant on the grid and take advantage of a valuable financial incentive.
By storing energy you generate through solar power or from the grid, you can offset high energy prices and keep your home running smoothly, even as state buyback rates continue to drop.
How to Qualify for the Federal Tax Credit
The battery must be charged by renewable energy (like solar). While batteries alone don’t qualify, if you pair them with solar panels or another renewable energy source, the system is eligible for the credit.
How to Get Backup Batteries Installed in Your Home
Taking advantage of the federal tax credit and installing a backup battery system involves a few simple steps:
Step 1: Assess Your Needs
Before purchasing a backup battery, it’s important to understand your home’s energy consumption and how much backup power you need. A licensed energy consultant from Empower Home Services can help you determine the right size and system for your home.
Step 2: Approve Final Design
Once you have chosen a system that meets your home’s needs, our team handles all the details. Our engineers will provide a customized design for your home to maximize the efficiency of your system. Once complete, the final design will be sent to you for approval.
Step 3: Apply for Permits
Depending on your location, you may need to apply for permits before installing your backup system. We will help guide you through the necessary paperwork.
Step 4: Installation
Once everything is approved, the installation process typically takes 1-2 days for a standard setup. We will ensure that the battery is properly connected to your solar system and all components are in working order.
Step 5: Claim Your Tax Credit
When tax season rolls around, be sure to work with a tax professional who can help you claim the ITC on your return. They will need to know the total cost of your system, so keep all receipts and documentation from your installer.
Let us help you take the stress out. Use our online contact form or call (888) 705-0535 to request your free quote from Empower Home Services today. The clock is ticking, but with the right team on your side, there is still time to make the switch and claim your full 30% tax credit.