Home Battery Storage Cost by State

The average cost of a home battery system is approximately $1000 per kWh of storage capacity. A typical 10 kWh system costs around $10,000 before the 30% federal tax credit, bringing the net cost to about $7,000. Costs vary by state, battery brand, and installation complexity.

Yes, the 30% federal Investment Tax Credit (ITC) applies to battery storage systems, even standalone batteries that are not paired with solar panels. This was made possible by the Inflation Reduction Act of 2022. The battery must have a capacity of at least 3 kWh to qualify.

A typical 10-13.5 kWh home battery can power essential loads (lights, refrigerator, WiFi, phone charging) for 8-12 hours during a power outage. Whole-home backup requires larger systems or multiple batteries. Actual backup time depends on your energy usage and which circuits are connected.

Battery storage can provide value even without solar panels through backup power during outages and time-of-use arbitrage (charging when rates are low, using stored energy when rates are high). However, the best return on investment comes from pairing batteries with solar panels, which allows you to store free solar energy and maximize self-consumption.