Battery storage for your home

Is battery storage right for you?

Battery storage can provide you additional control over powering your home, allowing you to keep essential devices (such as medical equipment, refrigeration, air conditioning, electric heating, lighting, and electric well pumps) powered during outages. Due to PG&E’s need to mitigate wildfire risk through Public Safety Power Shutoff (PSPS) events, customers may experience outages more frequently. PG&E is here to provide guidance on whether battery storage is right for you and how to invest in storage for your home.

You may be eligible for 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 can cover up to the full cost of a battery if you live in a High Fire-Threat District or have been shut off in a PSPS event more than two times AND meet one of the following eligibility criteria:

Have incentives reserved in the income-qualified solar programs (SASH or DAC-SASH)
Use medical life support equipment
Meet income-qualified eligibility standards
Rely on an electric well pump for water

Learn about the Self-Generation Incentive Program

Understand the potential benefits of battery storage for your home

Batteries can supply backup power during power outages and help you manage your electricity use to save money. If you have solar, a battery enables you to use more of the power produced by your solar system.

Battery storage enables you to:

Have backup power: Due to the growing risk of wildfires in California, and the need to shut power off for safety during periods of high fire risk, outages have the potential to last several days. Batteries can provide critical backup power for your essential devices and appliances, such as medical equipment, refrigeration, air conditioning, electric heating, lighting, and electric well pumps.

The length of time a battery storage system can provide backup power for your home depends on the size of the battery and the amount of electricity you need. Your storage provider should help you assess how long a battery — or a battery paired with solar — should be expected to last under backup power operation.

Under favorable solar conditions with limited home electricity use, pairing solar with a battery storage system can help your devices stay powered for multiple days.
Potentially reduce your energy costs: If you’re on the Home Charging EV2A rate or a Time-of-Use rate, your battery can charge when electricity is cheaper and discharge for use in your home when electricity is more expensive.

Customers that install battery storage, but don’t have an electric vehicle, may be eligible for the Home Charging EV2A rate. As of April 14, 2022, there are 5,451 storage-only participants. Space is limited to 30,000.

LEARN MORE ABOUT THE HOME CHARGING (EV2A) RATE
LEARN ABOUT TIME-OF-USE RATES
Use more of your at-home solar energy: If you have a solar system at your home, a battery can store any excess electricity generated by your solar system during the day for use after sunset. This can help you get the most bill savings under Net Energy Metering and optimize the carbon-reduction impacts from your solar system.

LEARN ABOUT NET ENERGY METERING

See the Getting Started tab (below) and talk to a storage provider to see if a battery storage system is right for your home.

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Home battery storage systems are typically connected to both the grid and your home’s electric panel to perform two main functions:

Charging: you can store power generated by your home rooftop solar system — or from the grid when electricity prices are lower — to be used at a later time. If an outage is imminent due to a storm or shut off event, some storage providers are able to send a signal to your battery to fully charge before the outage, in preparation to provide backup power.
Discharging: you can use the energy stored by your battery to power your home when the price of electricity from the grid is more expensive, at night when your solar system isn’t producing (if you have solar), or during an outage when you need backup power.

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 to be used for backup power and to shift your use of grid energy to lower-price times of day. Pairing solar with your battery, however, can provide additional benefits, such as longer-lasting backup power and increased bill savings.

Key components of a battery storage systems are the battery, the inverter, the wiring to your home’s electric panel, and energy management and communication software.

Battery: Most batteries currently used for home storage systems are Lithium-ion, a type of battery technology that is compact and able to charge and discharge quickly and efficiently. Lithium-ion batteries are used in laptops and phones as well as hybrid-electric and electric vehicles. Some off-grid home systems use lower-cost lead-acid batteries, but these batteries are less efficient and flexible for use.
Inverter: Inverters are necessary to convert stored direct current (DC) electricity from your battery to alternating current (AC) electricity which is 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 configured to either power your whole home or only essential loads during a power outage. Under a “whole home backup” setup, you would need to manually reduce electricity usage to ensure that you don’t drain your battery too quickly. This may be challenging if you are not at home when the outage begins.

Under a “partial home backup” setup, your battery and electric panel can be configured to power only essential devices and appliances such as medical equipment, refrigerators, electric well or sump pumps, and anything else that you deem essential. With a partial home backup, you will be less reliant on manual interventions to reduce your electricity use, which may prolong the time your essential devices and appliances can stay powered. Talk to your storage provider to determine what backup power setup is best suited to your needs.
Smart Energy Management Software and Communication Technology: Batteries used for home storage generally include software that automates charging and discharging, and monitors system performance to ensure product safety and reliability. This software can be programmed to automatically charge your battery when energy is cheaper and discharge when it’s more expensive. Some storage providers also provide communication tools that will alert your battery system to remain at full charge when a power outage is imminent due to a storm or power shut off event.

Determine your primary energy goal

We recommend talking with your storage provider about sizing and programming the battery to meet your energy goal(s):

You can use your battery to provide backup power for your essential electrical needs and/or medical equipment during power outages.
You can shift your use of grid energy to lower-price times of day to see bill savings.
If you have your own home solar system (or other renewable generation) you can also:
- Capture your solar energy and use it later to power your home.
- Send excess renewable energy back to the grid during more expensive “peak” times to see more bill savings.

Find the Right Contractor

Choosing the right storage provider to install your system and connect you to the PG&E grid is an important step. Please use the following guidelines when evaluating your options:

Get at least 3 bids from different storage providers.

Please work with a qualified electrician or contractor to ensure your storage is installed safely and legally. See this guide for more information.

Compare the following when you are evaluating bids:
- System cost
- The amount of energy the battery can hold (usable capacity, measured in kWh) and the amount of energy your battery can provide at any given moment (power rating, measured in kW). Some of your essential devices and appliances may require a lot of power at the same time, so you should check with your storage provider to ensure that the battery has a power rating that will meet your needs to start and run your essential equipment. Consider that some appliances like pumps and air conditioners may require significantly more power to startup than to run. You may need a special battery inverter that is designed to handle equipment with high startup power needs.
- Warranty (10+ years is required in order to receive incentives through SGIP) and any maintenance services provided. The warranty should specify how battery degradation is expected to affect performance over time.
- The bill savings you should 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 on the Better Business Bureau for potential red flags.

Questions to ask your storage provider:

About backup power:
How should the battery be configured to start and run my essential devices and appliances (i.e. medical equipment, refrigeration, air conditioning, electric heating, lighting, electric well pumps) during a potentially several-day power outage?
How are you ensuring the battery’s reliability to provide backup power?
Does the battery system include an automatic transfer switch to shift from grid to battery power when an outage occurs?
Do you offer a communication system that signals the battery to attain a maximum charge when a power outage is imminent?
About the financial return:
Will I save money over the life of the battery?
What is my expected return on investment?
About safety, equipment warranties, and maintenance:
What is the warranty on the battery and associated equipment?
Who is responsible for ongoing maintenance and how is maintenance and repair handled? Is this covered in the purchase or lease warranty in the contract?
In the case of hardware failure, does your company receive automatic notification? If so, do you send technicians out to address the issue?
How can I monitor usage and performance?
What safety measures are being taken to prevent the system 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 have the option to buy your system directly, get a loan to finance the purchase, or lease your battery system. Leases generally have a 10-15 year duration. Be sure to fully investigate all options before choosing how to finance the system. To understand the benefits and risks of each option, this Solar Consumer Protection Guide (PDF, 3.8 MB) has information on solar financing that is also applicable to storage starting on page 12.

Save with incentives

The PG&E Self-Generation Incentive Program (SGIP) provides financial incentives when you install a qualifying battery storage system. Consider the following to determine if and how incentives could work for you:

Higher incentives are given to those who need them the most. You may be eligible for increased incentives depending on your:
- Income status
- Need to keep medical or other essential devices and appliances powered
- Geographical location
- Likelihood to be shutoff in a Public Safety Power Shutoff (PSPS) event

For more information on available funding, incentive rates, and program rules, review PG&E’s Self-Generation Incentive Program web site.

Tax credit for solar paired with storage

The Federal Investment Tax Credit (ITC) is available for battery storage systems that are paired with — and charged by — solar or other renewable energy. You can receive a credit for 26% of the total installed cost in 2020, and 22% credit if installed in 2021. After 2021, the credit will not be available, unless it is extended by the US Congress.

Frequently asked questions

WILL SGIP INCENTIVES AFFECT MY ELIGIBILITY FOR GOVERNMENT PROGRAMS OR MY IMMIGRATION STATUS?

The financial incentives that pay for your battery don’t count as income and won’t affect your eligibility for MediCAL/Medicare benefits.

The application information is used only to validate eligibility and will not impact your immigration status.

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

Pairing your battery with solar provides benefits during outages and everyday life.

During an outage:

Pairing your battery with solar can enable you to recharge during the day — as long there is sufficient sunshine — to extend your home’s backup power for potentially multiple days. How long your system will provide backup power depends on your battery size, critical energy needs and, if paired with rooftop solar, weather conditions.

Talk to a battery storage provider to learn more about your specific needs and options.

On an everyday basis:

If you are on a Time-of Use-rate or Home Charging rate, your battery can charge when electricity is cheaper and discharge electricity for home use when electricity from PG&E’s grid is more expensive. When paired with solar, a battery can help you get the most bill savings under Net Energy Metering and optimize the carbon-reduction impacts from your solar system.

PG&E recommends that you review the expected financial return on solar batteries prior to investing in a system.

IF I RENT MY HOME, WHAT DO I NEED TO DO TO INSTALL A HOME BATTERY?

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

DOES MY HOME BATTERY WORK DURING A POWER OUTAGE?

Yes, if properly connected to the grid and programmed to do so, your battery will continue to work during a power outage and supply power to your home. Some storage providers provide communication tools that will alert your battery system to remain at full charge when a power outage is imminent due to a storm or a power shut off event. This is to help you stay powered for as long as possible.

DOES MY HOME SOLAR WORK DURING A POWER OUTAGE?

Home Solar logo During an electric power outage, your solar system will not provide power to your home unless designed to do so. This is to ensure that your solar system does not send power to the grid when it could be dangerous to electrical workers. For more information on accessing your home’s solar power during and outage, call your solar provider.

Ready to go solar? Learn more about your options.

HOW LONG WILL A HOME BATTERY CHARGE LAST?

The length of time your battery storage system can provide backup power depends on the size of your battery, the amount of electricity you need, and the availability of sunlight if your battery is paired with a solar system. Household usage varies and depends on factors such as the size of your home, the amount of power your devices and appliances require, and the weather (you’re more likely to use more electricity on hot days for air conditioning).

An example:

Assume your whole household normally uses 20 kWh of electricity per day. You work with your storage provider and estimate that you could reduce your electricity usage during a power outage to only 5 kWh per day to power your essential devices and appliances. You would like to be able to keep those devices powered for two days during a power outage, so you would need a battery that can discharge at least 10 kWh.

If you have — or were to add — solar, your battery can be charged by your solar system. A 5kW solar system can produce more than 10 kWh per day, as long as there is sufficient sunshine, and would have the potential to keep your battery charged during a multiple-day outage.

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

WHAT IS THE LIFE OF A HOME BATTERY BEFORE IT NEEDS TO BE REPLACED?

Most battery storage systems use Lithium Ion (Li-Ion) batteries. Excluding special circumstances, the battery (without replacement) and all other included components are designed to last at least 10 years and should 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, and most customers need grid power to produce enough electricity to support their typical electricity needs.

WHO HANDLES WHAT?

YOU

Decide if you are interested in a battery storage system.
Choose a qualified battery storage provider (see “Getting Started”, above).
Work with your community partner or battery storage provider to determine your incentive eligibility through the Self-Generation Incentive Program (SGIP), and if these incentives can cover up to the full cost of your battery.

BATTERY STORAGE PROVIDER

Helps you choose the right system size for your home and installs your system safely to serve your needs.
Programs the battery to provide electricity during times that best fit your needs (during an outage and/or to save you money).
Describes how the battery works and answers your questions.
Installs your battery storage system according to the rules of your local city or county (AKA your Authority Having Jurisdiction) and keeps you informed on the installation status throughout the process.
Addresses any post-installation battery performance issues.

PG&E

Reviews the application (submitted by the storage provider) to connect your storage system to PG&E’s grid.
Completes any required system upgrades to ensure grid safety (if necessary).
Gives approval when it is safe to interconnect your battery system to PG&E’s grid.
Provides SGIP funds to either you or your battery storage provider, following application approval.

HOW IS MAINTENANCE AND REPAIR HANDLED?

It’s important to discuss the maintenance of the battery with your storage provider before signing a contract. Maintenance and repair are typically included in the purchase or lease contract.

The management software included with each battery storage system may include round-the-clock remote monitoring and performance adjustment. In the case of hardware failure, some battery companies receive automatic notifications and can send technicians out to addresses problems. We recommend that you check your maintenance contract for these types of services.

What are the sizes and dimensions?

Home battery storage system size is largely dependent on your specific energy needs. Almost every battery storage provider offers a scalable technology and designs products according to your energy use and home needs. For the typical home, a garage or backroom will provide sufficient space to install the battery. Your storage provider can help you select appropriate placement for your battery storage unit.

CAN HOME BATTERIES BE INSTALLED EITHER INDOORS OR OUTDOORS?

Most battery storage suppliers offer both indoor and outdoor options to suit your needs. If you decide to install an outdoor system, ensure that your battery storage enclosure is Underwriters Laboratories (UL)-certified or National Electrical Manufacturers Association-rated to meet applicable safety standards.

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

Battery storage systems are generally safe. The primary safety concern is the potential for overheating which your storage provider should address through several safety measures, including:

Ensuring there is an adequate cooling system
Including dividers between individual battery cells
Using battery packs with built-in electronic protection circuits
Monitoring of system temperature, rate of charging and discharging
Providing remote shut-off via smart management software

You should confirm with your prospective battery storage providers that all included hardware (not just the battery) meets the safety criteria of reliable third-parties, such as Underwriter Laboratories and the National Electrical Manufacturers Association, who set safety standards for most battery storage components.

Does it make noise?

The noise generated by a battery storage system is minimal and generally will not negatively affect normal household activities. The peak volume of operation for a typical system is less than or similar to noise levels associated with an air conditioner.

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