PG&E incentives for home battery storage

Is battery storage right for you?

Get more control of powering your home with battery storage. Battery storage can help you keep power on for your essential devices. These devices could include:

Medical equipment
Refrigeration
Air conditioning or electric heating
Lighting
Electric well pumps

To protect customers and communities, PG&E may enable Enhanced Powerline Safety Settings (EPSS). Or, we may need to shut off power for safety when wildfire risk is high. We’re here to help you prepare. See below for guidance on if battery storage is right for you and how to invest in storage for your home.

Eligibility for financial incentives

Through the Self-Generation Incentive Program (SGIP), PG&E provides incentives when you install a battery storage system and offers increased incentives if you are more vulnerable during power outages (as long as program funds are available).

Incentives may cover the full cost of a battery if you live in a High Fire-Threat District or have experienced two or more Public Safety Power Shutoffs (PSPS). In addition, one of the following must apply:

You have incentives reserved in the income-qualified solar programs (SASH or DAC-SASH)
You use life-support equipment
You meet income eligibility standards
You rely on an electric well pump for water

Learn about the Self-Generation Incentive Program

Potential battery storage benefits

Batteries can supply your home with backup power during an outage. Batteries can also help you manage your electricity use to save money. If you have solar, a battery lets you use more of the power produced by your solar system. Details on these potential benefits include:

Backup power: We may need to turn power off for safety during periods of high fire risk. This is due to the growing risk of wildfires in California. Wildfire safety outages have the potential to last several days. Batteries can supply you with backup power.

The length of time your system can provide backup power is based on its size of the battery and the amount of power you need. A battery storage system paired with solar can help power devices for days. Your storage provider can help you assess how long a battery is expected to last.
Reduce energy costs: If you’re on the Home Charging EV2A rate or a Time-of-Use rate, you can charge your battery when power is cheaper. You can also use it in your home when the cost of power is higher.

If you install battery storage but don’t own an electric vehicle, you may qualify for the Home Charging EV2A rate. As of September 30, 2022, there were about 7,000 storage-only participants. Space is limited to 30,000.

LEARN MORE ABOUT THE HOME CHARGING (EV2A) RATE
LEARN ABOUT TIME-OF-USE RATES
Increased use of at-home solar energy: If you have solar, a battery can store any excess electricity generated during the day for use at night. This helps you reduce your carbon impact and get the most savings on your bill under Net Energy Metering.

LEARN ABOUT NET ENERGY METERING

Talk to a storage provider to see if a battery storage system is right for you and your home. See Getting Started, below.

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Home battery storage systems is often connected to the grid and your home’s electric system. By connecting to both, the system can perform two main functions:

Charging: You can store power generated by your rooftop solar system—or from the grid when power is cheaper—and use it later. If a power outage is expected, some storage providers can send a signal to your battery to charge it. This allows you to have backup power in case it is needed.
Discharging: Stored power from your battery can be used during an outage or at night. You can also save money by using it when the price of power from the grid is higher.

Rooftop solar panels on your home feed your storage batteries. The batteries then send power back to your home or to the PG&E grid.

Please note: You do not need a home solar system to benefit from battery storage. A battery storage system can charge solely from PG&E’s grid. Pairing solar with your battery, however, may help you save on your bill and make backup power last longer.

Key components of a battery storage system

Battery: The batteries used for most home storage systems are Lithium-ion. These batteries are compact. They can charge and discharge quickly and efficiently. Other types of batteries may be less efficient and less flexible.
Inverter: Inverters help convert battery power to the power used by your home and PG&E’s grid. Inverters also set the upper limit of how much power your battery can provide at any given moment.
Wiring and backup power configuration: Your battery can be set up to power your whole home or only essential loads during a power outage. Under a “whole home” setup, power needs to be manually reduced so the battery doesn’t drain too quickly. This may be challenging if you are not at home when the outage begins.

Under a “partial home” setup, your battery may power only essential devices. This setup can reduce power use and help devices stay powered longer. Your storage provider can help you decide which setup is the best fit for your needs.
Smart energy management software and communication technology: Your battery will most likely have special software. This software checks system performance to ensure the unit is safe and reliable. It can be set up to charge your battery when energy is cheaper and discharge when it’s more expensive. If a power outage is expected, some storage providers can send a signal to your battery to begin charging.

Determine your primary energy goal

Please talk to your storage provider about your energy goals. They can suggest sizing and programming for your needs.

Find the Right Contractor

Choosing the right storage provider is an important step. Consider these guidelines when looking at your options:

Get bids from at least three different storage providers.

Please work with a professional who is qualified. This can ensure your storage is installed safely. See this backup power installation guide for more information.

Compare the following when you are evaluating bids:
- System cost.
- The amount of energy the battery can hold and provide at any given moment. Check with your storage provider to ensure the battery has a power rating that will meet your needs. Some appliances like pumps and air conditioners may need more power to start up than to run. They may require a special battery inverter.
- Warranty and provided maintenance. To get incentives through the Self-Generation Incentive Program (SGIP), the warranty must be for 10+ years. It should also note how battery age will affect performance over time.
- Bill savings you expect to see.
Ensure you are working with a credible provider:

Verify that the storage provider’s license is current. Check with the California State License Board.
Look up the storage provider at the Better Business Bureau.

Ask your storage provider these questions:

Backup power:
How should the battery be set up to power my devices during a power outage that may last several days?
How are you ensuring the battery’s reliability to provide backup power?
If an outage occurs, will the system be able to switch from grid to battery power?
Do you offer a system that signals the battery to charge when a power outage is approaching?
Financial return:
Will I save money over the life of the battery?
What is my expected return on investment?
Safety, equipment warranties and maintenance:
What is the warranty on the battery and associated equipment?
Who is responsible for ongoing maintenance?
How are maintenance and repairs handled? Are these covered in the purchase or lease warranty in the contract?
If the hardware fails, does your company get an automatic notification? If so, do you send technicians out to address the issue?
How can I monitor usage and performance?
How is the system prevented from overheating?
If I lease the battery, will I own the equipment at the end of the lease commitment?

Explore financial options

Once you decide that a battery is right for you, you can:

Buy your system directly
Get a loan to finance the purchase, or
Lease your battery system

Leases generally last 10-15 years. Be sure to look at all options before choosing how to finance the system. To understand the benefits and risks of each, check out the Solar Consumer Protection Guide (PDF, 3.8 MB). Starting on page 12, it has information on solar financing that is also applicable to storage.

Save with incentives

Consider the following to determine if and how SGIP incentives could work for you.

Higher incentives are given to those who need them the most. You may be eligible for greater incentives depending on your:
- Income status
- Need for power
- Geographical location
- Likelihood to experience a Public Safety Power Shutoff (PSPS)

More information about funding, incentive rates and program rules can be found on our SGIP webpage.

Tax credit for solar paired with storage

You may receive a Federal Investment Tax Credit (ITC) if your battery storage system is paired with renewable energy. In August 2022, the ITC was raised to 30% for installations that take place between 2022-2032.

Frequently asked questions

WILL SGIP INCENTIVES AFFECT MY STATUS AS AN IMMIGRANT? WILL I STILL BE ELIGIBLE FOR GOVERNMENT PROGRAMS?

The financial incentives that pay for your battery don’t count as income. So, your eligibility for MediCAL/Medicare benefits won’t be affected.

The information on your application is only used to confirm SGIP eligibility. It will not impact your immigration status.

WHAT ARE THE BENEFITS OF PAIRING MY HOME BATTERY WITH SOLAR?

Pairing your battery with solar can benefit you any time.

During an outage:

A battery storage system paired with solar can help power devices for days. It also lets you recharge your battery during the day to make your backup power last longer. How long your system can provide backup power is determined by:

Your battery size
Your critical energy needs
Weather conditions (if paired with rooftop solar)

Talk to a battery storage provider to learn more.

On an everyday basis:

If you are on a PG&E Time-of-Use rate or Home Charging rate, you can charge your battery when power is cheaper. You can also use it in your home when the cost of power is higher. This helps you get the most bill savings under Net Energy Metering. It also reduces your carbon impact.

Before you invest in a system, we suggest you review the expected financial return.

IF I RENT MY HOME, CAN I STILL INSTALL A HOME BATTERY?

If you rent, please first work with your landlord to determine if you’re able to install a home battery.

WILL MY HOME BATTERY WORK DURING A POWER OUTAGE?

Yes, batteries can supply backup power during an outage. If a power outage is expected, some storage providers can send a signal to your battery to begin charging. This can help you stay powered for as long as possible.

DOES MY HOME SOLAR WORK DURING A POWER OUTAGE?

During a power outage, your solar system will not provide power to your home unless designed to do so. This is to ensure your solar system doesn’t send power to the grid when it could be unsafe for electrical workers. For more details on accessing your home’s solar power during an outage, call your solar provider.

Ready to go solar? Learn more about your options.

HOW LONG WILL A HOME BATTERY CHARGE LAST?

How long a home battery charge will last is determined by:

Your battery size
Your critical energy needs
Weather conditions (if paired with rooftop solar)

Household usage varies and depends on factors such as:

The size of your home
The amount of power your devices and appliances need
The weather (you’re more likely to use more power on hot days for air conditioning)

EVERY HOME IS DIFFERENT. PLEASE WORK WITH YOUR STORAGE PROVIDER TO FIND THE BEST OPTION FOR YOU.

HOW LONG WILL A HOME BATTERY LAST BEFORE IT NEEDS TO BE REPLACED?

Most battery storage systems use Lithium Ion (Li-Ion) batteries. In most instances, the battery and the components that come with it should last at least 10 years. They should also be warrantied for 10 years.

DOES HAVING HOME BATTERY STORAGE MEAN I'M OFF THE GRID?

No. Having battery storage does not mean that you are off the grid. Batteries do not generate power. They need to be charged either by PG&E’s grid or by home solar systems. Most customers need grid power to support their needs.

WHO HANDLES WHAT?

YOU/YOUR HOUSEHOLD

Decide if you are interested in a battery storage system.
Choose a qualified battery storage provider (see “Getting Started”, above).
Determine if you are eligible for SGIP incentives. Your community partner or battery storage provider can help you learn more.

THE BATTERY STORAGE PROVIDER

Submits an application.
Helps you choose the right system for your home.
Programs the battery to best fit your needs.
Describes how the battery works and answers your questions.
Installs your system.
Deals with any battery performance issues after it is installed.

PG&E

Reviews the application.
Completes any required system upgrades.
Gives approval when it is safe to connect your system to the grid.
Provides SGIP funds to either you or your battery storage provider.

HOW ARE MAINTENANCE AND REPAIR HANDLED?

Maintenance and repair are often included in the contract. Discuss this with your storage provider before you sign.

Your system may come with remote monitoring software. This means that, if hardware fails, the battery company will be notified. The company can then send technicians out to address the problem. We recommend you check your contract for these types of services.

WHAT ARE THE SIZES AND DIMENSIONS?

Home battery storage system size mostly depends on your energy needs. Most battery storage providers offer a range of sizes. For a typical home, a garage will provide enough space to install the battery. Your storage provider can help you select the right place for your unit.

CAN HOME BATTERIES BE INSTALLED EITHER INDOORS OR OUTDOORS?

Most suppliers can offer you both indoor and outdoor options. If you get an outdoor system, make sure the enclosure is Underwriters Laboratories (UL)-certified or National Electrical Manufacturers Association-rated.

ARE HOME BATTERY SYSTEMS SAFE? WHAT ARE THE POTENTIAL RISKS?

Battery storage systems are generally safe. The main concern is overheating. Your provider should prevent this by:

Checking the cooling system
Separating the battery cells
Using packs with built-in safety circuits
Monitoring the system temperature
Observing charging/discharging rates
Providing remote shutoff software

Make sure all hardware meets safety criteria from Underwriter Laboratories and the National Electrical Manufacturers Association. Ask a provider to confirm their hardware meets these standards.

DOES IT MAKE NOISE?

The noise generated by a battery storage system is minimal. It generally will not interfere with normal activities in your home. Peak volume is usually less than or equal to the noise level of an air conditioner.

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