## Getting started

Regardless of whether you're in a high risk area for wildfires, creating an emergency supply kit and making an action plan are simple tasks you can tackle right away. There are also things you can do to give your house the best chance of surviving a wildfire, like home hardening and creating defensible space, as well as seasonal actions you can take year-round to stay safe. [Read all about preparing for fire season in Cal Fire's excellent guide here](https://www.readyforwildfire.org/).

## Install backup power

During a wildfire, utility companies will issue public safety power shut-offs to protect the grid and prevent power lines from being damaged. While this is a necessary step, it can cause massive disruptions to people's lives. Fortunately, installing a home battery is a practical way to avoid blackouts, and right now it's more affordable than ever.

Through California's **Self-Generation Incentive Program (SGIP)**, there are sizable rebates available to homeowners for installing home energy storage. If you're eligible for a rebate through SGIP, it can dramatically change the cost of getting backup power. And you don't need solar to apply.

## Saving with SGIP

In 2020, California set aside $1 billion in SGIP funding to help incentivize home energy storage. Today, there's about 10% left, but funds are going fast. The sooner you apply, the more likely you are to get a share of funding.

**Three ways SGIP helps homeowners:**

- For the general market, SGIP can shave off about **10-15%** of your home battery's cost. This applies to households using PG&E, SCE, SDG&E, and SoCalGas.

- Households in low-income communities can apply for the **Equity rebate** and possibly get **85%** of their battery covered.

- If your household has experienced public safety power shut-offs or if you live in an area of high fire risk, you may be eligible for the **Equity Resiliency rebate,** which could cover **100% of your battery cost**.

## Haven makes it easy

Getting backup power is a practical way to prevent blackouts during fire season. And SGIP is making it a lot cheaper to do it. To find out if you're eligible for a rebate and to learn more about home battery storage, [schedule a call with a Haven consultant](https://meetings.hubspot.com/haven-energy/consultation).

We'll take care of everything - from choosing your battery and designing your system, to permitting, installation, and maximizing your savings through SGIP and other incentives. We'll also provide ongoing energy management and ways to save year-round. Let's talk.

---

Sources:

Smith, H. (2 May, 2023). _Wet winter may delay - but not deter - 2023 fire season_. The L.A. Times. [https://www.latimes.com/environment/story/2023-05-02/wet-winter-may-delay-but-not-deter-2023-fire-season](https://www.latimes.com/environment/story/2023-05-02/wet-winter-may-delay-but-not-deter-2023-fire-season)

_Participating in Self-Generation Incentive Program (SGIP)._ California Public Utilities Commission. [https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program/participating-in-self-generation-incentive-program-sgip](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program/participating-in-self-generation-incentive-program-sgip)

Brenner, S. (Sept 16, 2020). _What the wildfires tell us about the shortcomings of California's electric grid._ UCLA. [https://newsroom.ucla.edu/releases/wildfires-california-electrical-grid-eric-fournier](https://newsroom.ucla.edu/releases/wildfires-california-electrical-grid-eric-fournier)

In California, fire season is inevitable - even after a particularly wet winter. In fact, fire fighters have tackled more than 640 wildland fires this year alone. 

According to the director and fire chief of the California Department of Forestry & Fire Protection, Joe Tyler, "It will only be a short matter of time before all of those fuels dry out, provide the fuel loading, and potentially have large and damaging wildfires." 

It's important to be prepared, even if you've never confronted a wildfire. And there are a few things every homeowner can do to get prepared.

How to prepare for fire season

## What's the difference between a home battery and a generator?

Batteries and generators can both provide backup electrical power during a power outage. The big difference between them is in their fuel source.

### Home generators

A home generator is a fuel-powered backup system that runs on natural gas, propane, gasoline, or diesel. They fall into two main types:

- **Whole house generators** (also called "home standby generators") are permanent fixtures that kick in automatically if the power goes out.
- **Portable generators** can be stored away and brought out when there's an outage.

### Home battery systems

A [home battery backup system](https://havenenergy.com/energy-questions/home-battery-backup/) doesn't generate power, but stores power from solar panels or the grid. You can use the stored energy to power your home during an outage or during peak periods, when time-of-use rates are highest.

If your battery is connected to solar panels, it can recharge during the day. Or you can recharge your battery from the grid when energy is cheapest.

That makes battery storage better for the environment, and for your wallet &ndash; you can use your battery every day to save money on your energy bills. By contrast, generators need to be stored safely and kept maintained and fueled up when not in use.

---

## What's the difference in cost?

Both generators and battery systems can have a high upfront cost. However, there are major differences in how much you'll pay and the long-term financial benefits you'll get from them.

Batteries, for instance, are eligible for a number of incentives that bring down the overall cost, and they can pay for themselves over time through savings on every energy bill. Let's break down the cost and savings potential for each.

Generators can cost anywhere from [$200 to $20,000](https://realestate.usnews.com/real-estate/articles/how-much-does-a-home-generator-cost), depending on the type, features, and power output. Purchasing and installing a generator to back up your whole home costs $10K to $20K, on average.

Generators need to be set up safely and properly. Professional installers can place the generator in a safe spot outside the home and ensure that it's correctly connected to a fuel tank or gas line. Whole house generators are the most expensive to install, but even having a portable generator professionally installed costs $1,200, on average.

Lastly, fuel costs add to the overall cost of owning a generator. Fuel costs will vary because some generators can connect to a main gas line while others will require a tank of fuel, like liquid propane or diesel. With any kind of generator, you're locked into some kind of fuel cost for its entire lifespan.

Home battery backup has a higher upfront cost. The average cost of a home battery system runs from $18K to $23K, including installation. That cost can be higher if you're installing solar panels with your battery, but you get the extra benefits of solar savings and the ability to recharge your battery during an outage.

Unlike generators, home battery systems pay for themselves over their lifetime. You can also [take advantage of incentives](https://havenenergy.com/energy-questions/paying-for-home-battery-backup/) to help lower the upfront cost. Thanks to the Inflation Reduction Act (IRA) and state rebates, battery storage is more affordable than ever. For example, under the IRA, you can claim 30% of the cost of the battery as a federal tax investment credit.

---

## How long can generators and batteries back up a home?

Most batteries have a continuous power rating of 5 to 8 kilowatts, which is enough to power your most important appliances for a day or two &ndash; or longer if you have solar panels to recharge your battery. Homeowners who install a home battery recognize that they won't be able to power their entire home, but they can customize their system to power their critical appliances, like their refrigerator, lights, garage door, and outlets for charging mobile devices.

Generators, on the other hand, will last as long as they have fuel. They can run continuously for up to three weeks if necessary.

### Is battery backup better than a generator?

By almost every measure, home batteries are better than generators. Here are a few reasons why:

- No ongoing costs &ndash; Batteries charge from solar panels or the grid, so they don't need fuel and require very little ongoing maintenance. With a generator, fuel costs can be considerable, especially if you pay to have fuel delivered. And generators need to be tested every few months.
- Better for the planet &ndash; Batteries don't use fossil fuels, so they don't emit carbon dioxide or other greenhouse gasses.
- No loud noises &ndash; Because batteries have no moving parts, they're much quieter than generators. You won't even hear them running.
- Health advantages &ndash; Generators can cause carbon monoxide poisoning and other accidents if they're not used or installed correctly. Batteries don't have that risk, so you won't need to worry about affecting the air quality in or around your home.
- Savings &ndash; You can use your battery system every day to save money on your energy bills. Using energy from your battery when electricity costs are highest helps you avoid peak charges. Your savings will be even greater if you pair your battery system with solar panels because you can store the free solar electricity to when rates are highest.

If you're interested in learning more about a home battery, Haven is here to help. We know installing battery storage can be a big decision, so we take care of every step in the process &ndash; from choosing your battery to system design, permitting, installation, and ongoing energy management. [Get a free quote today](https://havenenergy.com/request-quote/).


If you suspect that power outages are happening more often, you may be on to something. According to research from Climate Central, there were 64% more major power outages from 2011 to 2021 than in the previous decade.   Until recently, if you wanted to safeguard your home against power outages, you had just one not-so-great solution: a generator. But with lower-priced and more widely available home battery systems, you have a new, renewable option for backup power.

Home batteries vs. generators: How do they compare?


# What is net metering? 

Net metering, or NEM, allows homeowners with solar panels to earn power bill credits for any excess energy they send to the grid. So if your solar panels generate more electricity than you use, you can sell that surplus back to your utility. You can use your credits later, when you need to draw electricity from the grid. 

Let's say your solar panels generate 100 kilowatt-hours (kWh) of electricity in an afternoon, but you only use 50 kWh to power your home. With NEM, you can sell the extra 50 kWh to your utility for, say, $0.25 per kWh. So you earn a $12.50 credit. Later that night, when you need power from the grid, you can use that credit.

---
# What is NEM 3.0? 

NEM 3.0 is California's latest iteration of its net metering policy. It replaces NEM 2.0 and takes effect in April 2023. 

Under NEM 3.0, any homeowner who submits their solar interconnection application after **April 14** won't earn as much by exporting their surplus power to the grid. The policy is not retroactive, however, so existing homeowners with solar will be grandfathered into their original net metering policy for 20 years. 

NEM 3.0 includes new benefits to incentivize customers to install a home battery in addition to solar. And customers who already have solar under the NEM 1.0 or NEM 2.0 policies can still enjoy the benefits of home battery storage.


### Reduced net metering credits

For the past two decades, homeowners in California could sell their solar electricity for between $0.22/kWh and $0.36/kWh. Under NEM 3.0, new solar customers will only receive credits of about $0.08/kWh, varying by month and time of day. This works out to a $30,000 to $40,000 loss over the lifetime of their solar system.


### Why is NEM 3.0 happening now?

California has the most residential solar power in the country. It also has a power grid that's becoming increasingly taxed by the state's growing demand. Regulators see an opportunity here.

Solar production helps reduce stress on the grid during the day when the sun is shining. But it doesn't help in the evening, when the sun goes down and electricity demand peaks. Instead, California needs to meet peak demand by drawing power from dirtier sources, like natural gas.

Regulators aim to incentivize home battery storage as a way to reduce demand on the grid at peak times, prevent power outages, and help people save money on their utility bills. And more home battery storage will help all of California decarbonize faster.

---
# Changes to rate plans

With NEM 3.0, residential solar customers must also enroll in new, 'highly differentiated' time-of-use (TOU) rate plans. Under TOU plans, electricity costs more when demand is highest, such as in the evening or on hot summer days when AC use increases. Electricity costs less when demand is lower. 

So NEM 3.0 lowers the value of excess solar energy that households generate during the day, but raises the cost of electricity during peak hours. At first glance, that doesn't sound great for residential customers who want to install solar. But there's a strategic loophole: get a battery.

_[Get a quote from Haven](https://havenenergy.com/request-quote/)_

---
# Home batteries increase the value of solar under NEM 3.0

NEM 3.0 makes solar with battery backup more valuable than standalone storage. Batteries also have a number of benefits for residential customers.


### Optimize your solar credits

Residential customers with solar who _don't _have home batteries have to sell their excess power back to the grid right away. But solar owners who install batteries will be able to store that excess energy and export it to the grid later, when demand and prices are highest.


### Shorten your payback period

Under NEM 2.0, most homeowners in California take roughly five to six years to recover the cost of their solar installation through energy savings. NEM 3.0 will extend that period closer to nine or ten years. Adding battery storage to solar will help you save more over your system's lifetime and shorten your payback period. 


### Save more money

Most homeowners who install solar panels care about saving money on energy costs. But under NEM 3.0, new solar customers are set to miss out on 75% of the value of their solar installation over its lifetime, compared to customers who install solar panels and battery storage together.

You can potentially save around $300 a year by using your stored solar energy when prices go up and by selling excess solar power to sell back to the grid when you can get the highest price.


### Enjoy backup during power outages

One of the most compelling benefits of a home battery is the peace of mind it provides during power outages. This is an increasing concern in California, given more frequent extreme weather events and rolling summer blackouts to balance the grid. Home battery backup may not be able to power your entire house, but you'll be able to keep your essentials going.

---
# Get ready to save

To optimize your savings with solar under NEM 3.0, a battery is your best bet. When you work with Haven Energy, we make it easy to find the right battery system for you. We handle every step along the way, from choosing your battery to system design, permitting, and connecting you with a vetted installer. [Get a free quote today.](https://havenenergy.com/request-quote/)


If you’ve thought about getting solar panels, you’ve probably come across the term “net metering.” And if you’re in California, you might have heard that net metering is changing. But what is net metering? How does it affect your potential solar benefits? And how does installing a home battery open a loophole to better savings?

Everything you need to know about net metering and battery storage

# Factors that determine battery system size

First, let's talk about the ways in which battery size is calculated: storage capacity and load capacity.

**Storage capacity:** This indicates how much energy a battery can hold and is measured in kilowatt-hours (kWh). A kWh is a measure of how much energy you use. It's equal to the amount of power you'd use if you kept a 1,000-watt appliance running for an hour. So a 2,000-watt oven would use one kWh of energy in 30 minutes of operation. A typical battery system has about 13 kWh of storage capacity.

**Load capacity :** This measures how much power a battery can send out and depends on the conditions of the power grid. Capacity is measured in kilowatts, which is different from a kilowatt-hour! A kilowatt is a unit of power equal to 1,000 watts.



* Continuous capacity refers to how much power a battery can keep sending out under normal conditions, and tells you how many appliances you can expect to run at once. 
* Peak capacity refers to how much power a battery can send out during moments of heightened demand, such as when your air conditioning kicks on. 

The size of the battery system you need depends on a number of factors. 

### Your electric load

To size your battery system appropriately, you need to understand how much energy you use. According to the US Energy Information Administration (EIA), American households used [886 kWh a month](https://www.eia.gov/electricity/sales_revenue_price/pdf/table5_a.pdf) on average in 2021. That can vary a lot depending on the size and location of your home, though. Homes on the Pacific coast used an average of 655 kWh per month, compared to 1,147 kWh for homes in the central Southeast. 

Understanding your average energy usage will help you judge how much electricity you might need during a power outage, for instance. 

### Your solar system output

If you pair battery storage with solar panels, you need to know how much electricity your panels produce. That will give you an idea of how much electricity you need to be able to store in your battery system. You can also install battery backup without solar panels. In this case, your battery will charge from the grid, so solar system output won't matter for you.


### Your energy goals

People install battery storage for different reasons. Your personal goals will help determine the size of the system you need. We'll talk more about this in the next section.

_Haven will help you navigate the battery backup process from start to finish. [Get a quote today](https://havenenergy.com/request-quote/)._

---

# What are your goals for your battery system?

From backup power to lowering your carbon footprint at home, batteries serve a variety of functions. And the size of your batteries will vary depending on the primary goal of your storage system. 


### Resiliency

If your main goal is keeping your lights on during a power outage, a single battery will likely be able to provide enough backup. If you're concerned about longer power outages (e.g., multi-day outages), you would likely choose more backup storage.


### Energy savings

On the other hand, if your main objective is saving money on your electric bills, you'll need more storage capacity. To maximize savings, you should consider a solar-plus-storage system, which would allow you to generate power on sunny days and then tap into your stored energy in the evening, when rates are high, and at night, when no solar generation is possible. During these latter periods, you'll need enough storage capacity to cover all of your energy needs. 


### Total energy independence

In order to go totally off the grid, you'll need to cover all of your energy needs through solar panels and battery storage. That said, even with a robust number of batteries, complete energy independence usually requires having backup power for backup power, like generators. 

---

# How to calculate the amount of battery storage you need

As we've already discussed, the amount of required battery storage will vary depending on your needs and goals. But there are two factors to consider that can help you estimate how many batteries to install.


### What appliances do you want to power?

This is the electrical load mentioned earlier – it's the power required to run the appliances in your home. You'll see this on your monthly utility bill as the energy you consumed during a billing period. 

Whatever your goal for battery storage, you need to know the electrical load that you must meet with battery storage: 



* If your primary goal is saving money, determine what appliances you want to run when you're not drawing power from the grid and your solar panels aren't generating electricity.
* If your primary goal is resilience during a power outage, decide what critical appliances you want to keep running while you wait for power to be restored.
* If you want to go fully off the grid, figure out the electric load you need to support when your solar panels aren't generating electricity.

To estimate your electrical load, you need to determine the demand of the appliances you want to power. In other words, you need their wattage. 

The US Department of Energy has an [energy use calculator](https://www.energy.gov/energysaver/estimating-appliance-and-home-electronic-energy-use) that can help you estimate your total electricity demand. You can select an appliance from the dropdown menu to get the average wattage for that appliance, then add it to the wattage for your other appliances.

In reality, you're not going to turn on all of your appliances at once. Your washing machine, for instance, doesn't run constantly like your refrigerator does. But you can calculate your personal peak demand including those sometimes-used appliances to know the upper limit of the electrical load you need to cover. 


### How long do you want to power those appliances?

The amount of time you need to power your electrical load will depend on your primary battery storage goal: 



* If your primary goal is saving money, you need to cover the time that you don't want to draw power from the grid. This could be the times when your solar panels aren't producing electricity and/or the times of peak demand if you're on a time-of-use (TOU) rate.
* If your primary goal is resiliency, you need to be able to make it through a power outage. According to the Energy Information Administration, the average power outage lasts around two hours. It's important to remember that you don't need to power everything during an outage, just your critical appliances &ndash; think your refrigerator, garage door opener, cell phone charger, etc. And if you have solar panels, they can recharge your battery system during an outage. 
* If your primary goal is going completely off-grid, you have to cover all the times when your solar panels aren't producing electricity. It's probably a good idea to overestimate here because you won't have the grid as backup.

To estimate how much storage capacity you'll need,** multiply your electric load by the number of hours you need to power that load.** This will give you a ballpark figure. 

Let's calculate an example using the Department of Energy's calculator. The average refrigerator has a wattage of 225. It runs 24 hours a day, 365 days a year, but let's say that you have solar panels to cover 8 of those hours every day. So you'd need battery storage to cover 225 watts of power for 16 hours a day, every day of the year. That means you'd need to cover 410.6 kWh of electricity for your refrigerator every year, or 1.1 kWh a day.

---
# Can a single battery power a house?

Yes. You can power your house with a single battery, but not for an extended period of time. You could keep your lights on during a power outage, for example, but you couldn't go completely off the grid on a single battery. 

How long your battery backup protection will last during a power outage relies on several factors. If you charge your battery from the grid, for instance, you have a finite amount of back-up power. If you have a solar-plus-storage system, you essentially have an “energy island.” Your solar panels continue to generate electricity, which recharges your battery and lets you keep drawing power. 

The number of appliances you use will also affect how long your backup power lasts. If you try to run everything just as usual, you'll deplete your stored power in a few hours. If you run only the most critical appliances, you can make your backup power last a lot longer. 

---
# Let's talk 

To learn more about sizing your battery system or to better understand the benefits of home batteries, [get a quote here](https://havenenergy.com/request-quote/) or give us a call to speak with a Haven consultant. We'll help you figure out the best option for your exact situation and be there to support you every step of the way. 

NOTES

Your storage needs could depend on the type of electricity rate you have:

**Flat rates**

On a flat rate (i.e., you pay the same for electricity no matter the time of day), you should aim to use as little energy from the grid as possible – that means covering more of your energy needs with solar and storage.

**Time-of-use (TOU) rates**

On a variable, or time-of-use (TOU) rate, you'll want to make sure you have enough storage to get through peak pricing times. You may also want to check whether your utility offers **arbitrage,** which means that you can sell extra stored energy back to the grid during peak times at a higher price than usual. If so, it could be worth installing a little extra storage. Just note that there will probably be an arbitrage cap that limits how much stored energy you can sell back to the grid.


[Home battery backup](https://havenenergy.com/energy-questions/home-battery-backup/) is helping homeowners keep their lights on during power outages, save money on energy bills, and lower their carbon emissions. Depending on how much backup power you need, you could install anywhere from one to twelve (or even more!) batteries. So how do you determine how many are right for you?  When you partner with Haven Energy, we’ll take the guesswork out of deciding what size battery system is right for your home and energy usage. We’ll assist with every step of the process so you get the best storage solution for your needs.   In this post, we’ll give you a foundation to help you understand everything that goes into sizing your battery backup system.

How much battery backup do I need for my house?

# Are home battery backup systems worth it?

The average cost of a home battery system runs from $18K to $23K, including installation. While this can prompt some initial sticker shock, we're experiencing a historic shift to incentivize home electrification, which is good news for homeowners. 

In fact, you could recoup the cost of your battery system in as little as five years by taking advantage of the newly available federal tax credit and state incentives, and using your home battery for power during peak pricing. It's also worth noting that batteries typically last 15 years and, once installed, have very low maintenance needs. 

When assessing a battery system's worth, there are several factors to keep in mind:



* **Available incentives**  If you can get sizable incentives and rebates for installing battery storage, the cost of your system could drop significantly. The biggest of these is  the 30% federal tax credit, which we'll get into later.
* **Your electricity rate plan**  Battery storage can help you save money on power, especially if you're on a time-of-use (TOU) rate or have to pay a demand charge. Under a TOU rate, the cost of electricity changes with the time of day. It's most expensive at times of peak demand. If you're a customer of Southern California Edison (SEC), for example, you might be on a TOU plan with peak prices from 4-9pm or 5-8pm. With battery storage, you can draw power from your battery system during those times, avoiding peak electricity prices. A demand charge, on the other hand, is based on the amount of electricity you use. Batteries reduce the total amount of energy that you need to draw from the grid, and consequently pay for.
* **Value of lost load**  This is a fancy industry term for a simple idea: how much do you value _not_ losing power? For many homeowners, energy savings aren't the primary reason to install energy storage – they do it because they want protection during power outages. That peace of mind is part of the battery system's value.
* **Value of a lower carbon footprint**  With battery storage, you'll be able to use even more renewable energy than you could if you only had solar panels. Your battery system will store the solar energy your panels generate so you can use it at night and on days with bad weather, when you otherwise wouldn't have solar power.

---
# Paying for your backup storage system: Cash vs. financing

Once you decide that installing battery backup is right for you, the next step is figuring out the best option for payment. Let's dig in.


### Paying cash upfront

Paying for your battery system outright is the best way to maximize your savings. You'll be able to take advantage of all the incentives available, you won't need to worry about interest rates on a loan, and you'll own your system from day one. The tough part? You'll need to be able to cover the $18-23K cost of the system in one purchase. 


### Financing 

If you still want to own your home battery backup system but don't want to pay everything upfront, you can access financing programs. These allow you to spread the cost out over a number of years. You can get a loan for just a battery system (also called standalone storage) or for one with solar panels (also called a solar-plus-storage system). You'll still be able to take advantage of incentives if you finance your system.

When you work with Haven, we'll help you find the best place to get a loan. This might mean working with a solar-specific lender, or looking at a home equity loan through your existing bank or credit union. 


### Leasing 

Storage leases aren't as common, but they work the same way as leasing solar panels. Someone else owns and maintains the battery system, and you pay them a monthly fee. A lease probably makes the most sense if you're leasing your solar system, too. Just know that you will not be eligible for tax incentives or rebates if you go this route because you won't own the battery system. 

_[Want to learn more? Get a quote from Haven](https://havenenergy.com/request-quote/)_

---
# Tax credits for backup power

The federal government recently expanded the tax credits available for battery storage systems under the Residential Clean Energy Credit. A tax credit reduces the amount of income tax that you owe in a year. 

Homeowners are eligible for **a 30% federal investment tax credit (ITC)** on the cost of battery storage and installation. So if you spend $20K to buy and install a battery system, your ITC would be $6,000. That means you would owe $6,000 less in income taxes for the year you installed the battery system.

There's no cap on the federal ITC for battery storage. It covers labor costs, including the costs for battery installation and the associated fees (e.g., permitting fees, inspection costs, developer fees), balance-of-system equipment (e.g., wiring, inverters), and batteries that have a capacity of 3 kilowatt-hours (kWh) or more. Any home battery installed after December 31, 2022  qualifies for the 30% ITC. The ITC even applies if you already have solar but want to add battery storage. 


### State tax credits

Very few states offer state tax credits for battery storage, but for those that do, the tax credits can be combined with the federal (ITC); they aren't mutually exclusive. Under the [Maryland Energy Storage Income tax credit](https://energy.maryland.gov/business/Pages/EnergyStorage.aspx), for instance, the state has $750K to distribute in energy storage tax credit certificates. The funds will be distributed on a first-come, first-served basis. 

---
# Inflation Reduction Act benefits for home energy storage

The ground-breaking Inflation Reduction Act (IRA) gave a big boost to home backup batteries. It was the IRA that expanded the federal ITC for battery storage. Previously, the incentive was only available for batteries installed with solar panels. It now applies to standalone storage, as well. 

The IRA also increased the existing ITC from 26% to 30% for 10 years. After January 1, 2033, the federal ITC for battery storage will start to drop gradually. Storage systems installed in 2033 will be eligible for a 26% ITC. That will drop to 22% in 2034 and be phased out in 2035.


## State incentive programs

A number of states offer their own incentives to encourage more battery storage, typically in the form of rebates. California's [Self-Generation Incentive Program](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program/participating-in-self-generation-incentive-program-sgip) is one of the best known state rebate programs. With rebates, you get a cash reward after your battery is installed and connected to the grid. Other states with these types of programs include [Colorado](https://www.hawaiianelectric.com/products-and-services/customer-renewable-programs/rooftop-solar/battery-bonus), [Hawaii](https://www.hawaiianelectric.com/products-and-services/customer-renewable-programs/rooftop-solar/battery-bonus), [Oregon](https://www.oregon.gov/energy/Incentives/Pages/Solar-Storage-Rebate-Program.aspx), and [Massachusetts](https://masmartsolar.com/). 

Rebates from your state do not get deducted from your federal ITC. To see what incentives are available for battery storage in your state — or even in your county or city — check out the [Database of State Incentives for Renewables & Efficiency](https://www.dsireusa.org/) (DSIRE).

_[Talk with a Haven specialist to see how much you can save through incentive programs ](https://havenenergy.com/request-quote/)_


### Self-Generation Incentive Program (SGIP)

One of the best-known state rebate programs is California's [Self-Generation Incentive Program](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program/participating-in-self-generation-incentive-program-sgip). SGIP is operated by the California Public Utilities Commission (CPUC) and is a rebate for battery storage. In 2020, the CPUC added $675 million to the SGIP, bringing the total amount of incentives available to $1 billion. The program has been extended until 2024.  

SGIP has multiple tiers:



* General market SGIP rebate — The general rebate pays $150 per kWh, which covers about 15% of the cost of an average battery storage system, after the tax credit has been applied. This rebate is for any customer of Pacific Gas & Electric, Southern California Edison, Southern California Gas Company, or San Diego Gas & Electric. 
* Equity rebate — This level pays $850 per kWh, which covers about 85% of the cost of an average battery storage system. It aims to make battery storage more affordable for low-income communities, such as people who live in low-income housing or who have participated in [solar affordability programs](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/solar-in-disadvantaged-communities).
* Equity Resiliency rebate — This level pays $1,000 per kWh, which covers close to the full cost of an average battery storage system. This level is designed to help those who have experienced multiple public safety power shut-offs or who live in areas of high fire risk.

If you qualify for an SGIP rebate, you will get paid after your home battery is connected to the grid, although installers may be able to cover the upfront cost. The rebate is also applicable to standalone battery storage as well as solar-plus-storage systems. 

It's important to act quickly, however. SGIP has a tiered rate structure, which means that the rebate amount drops as more homeowners install batteries. The sooner you apply, the bigger the rebate you'll receive.

---
# Utility programs

In addition to the federal and state governments, some utilities offer incentives for battery storage. These are often called bring-your-own-battery or bring-your-own-device programs. Under these programs, utilities will pay you and/or provide bill credits if you allow them to draw power from your battery at specific times.

Why would a utility need to take power from home batteries? During times of peak demand — think summer heat waves when everyone is running their ACs at full blast — utilities can struggle to balance the grid and make sure enough power gets to all the places it needs to go. Being able to tap into batteries gives the utility a safety valve. It also helps them avoid turning on peaker plants. Peaker plants are the oldest, typically dirtiest power plants that only get turned on at times of peak demand. Utilities reward you for helping them out and allowing them to avoid using peaker plants.

Bring-your-own-device programs are designed to avoid completely draining your battery so that you can't use it. For instance, the utility won't pull from your battery if there's a major storm on the way because they want you to have backup power if you need it. 

One of the biggest bring-your-own-device programs is National Grid's [ConnectedSolutions](https://www.nationalgridus.com/MA-Home/Connected-Solutions/BatteryProgram) program in the Northeast. Customers who want to join need to install a battery using an approved inverter (inverters take the direct current energy stored in your battery and turn it into alternating current that your appliances can use). When National Grid needs to draw power from the battery, it sends a signal through the inverter. 

The program lasts from June to September each year, and National Grid can tap your home battery system between 2pm and 7pm Events will last no longer than three hours at a time, and batteries will be drawn on no more than 60 times. Customers who participate can earn $250 per kW performed per summer for the first five summers they're enrolled.

Another Northeastern utility, Eversource, has its own [ConnectedSolutions program](https://www.eversource.com/content/residential/save-money-energy/energy-efficiency-programs/demand-response/battery-storage-demand-response) for customers in Connecticut, Massachusetts, and New Hampshire. Other utilities with bring-your-own-battery programs include [Green Mountain Power](https://greenmountainpower.com/rebates-programs/home-energy-storage/bring-your-own-device/) in Vermont. [Duke Energy](https://news.duke-energy.com/releases/duke-energy-launches-bring-your-own-battery-study-to-test-potential-improvement-of-energy-resiliency-in-florida) ran a pilot program in Florida in 2022. 

If you want to earn rewards through a bring-your-own-device program, first ensure that your utility offers this kind of program. You'll also need to verify that the battery you want to install can participate – utilities sometimes require certain battery manufacturers. Lastly, the incentives through these programs are considered income, so they will factor into taxes. 

---
# How Haven can help you decide on a home battery

Just like solar panels, home battery backup is a major purchase that can have major benefits for your home. It's important to do your research to get the best quote, figure out how you're going to pay for the system, and ensure you're getting all the incentives available to you.

If you want to learn more about the payment options and incentives available for your backup project, we're here to help. Get a quote on a home battery system or schedule a call with a Haven consultant to ask questions and talk through the process.


Paying for home battery backup: rebates, incentives and tax breaks

# **What is a home battery backup system?**

The most common type of home battery backup is a lithium-ion battery, similar to what’s in your phone or electric vehicle (EV). Home battery storage combines multiple lithium-ion cells with power electronics, which regulate the performance of the system and ensure its safety.

There are two options for how your home battery can store energy:

**Solar panels**

You can pair a home battery with solar panels. The solar panels generate energy during the day to power your home. Typically, any energy that you don’t use will go back to the electric grid, assuming you have a net-metered system. If you don’t participate in net-metering, that energy gets wasted. 

With a battery system, however, that extra solar power is stored in the battery for you to use later, such as at night when the solar panels aren’t generating electricity. This is called a **solar-plus-storage system**. 


**The grid**

You can let your home battery draw and store energy from the grid. You can do this without solar panels. The battery will charge from the grid and hold onto that energy for you.

Put simply, home battery backup gives you options — you can draw energy from the grid or from your battery system. That flexibility leads to battery storage’s biggest benefits.

---

# **What are the benefits of a home backup system?**


## **Provide backup during a power outage**

Contrary to what many people think, solar panels alone won’t work as emergency power during a grid outage. Unless you’re completely off the grid, your solar system is connected to the power grid. When the grid goes down, those solar systems must be turned off to protect utility workers – sending electricity down transmission lines while crews are working on them would be extremely dangerous.

If your solar panels are connected to battery storage, however, they can stay on and send continuous power to the battery. Even if you don’t have solar panels, you can keep your home running off of your battery while you wait for power to be restored. That means you can keep your lights on, run critical medical devices, maintain your Wi-Fi connection, keep food fresh in the refrigerator, charge your mobile devices, use your kitchen appliances, and open and close your garage door. You can even watch TV if you want. 


In short, energy storage batteries provide backup power during a wide variety of events: extreme weather, accidents that affect power lines, and demand response events that require your utility to conserve power.


## **Energy savings**

People considering batteries want to know one thing: can a whole home battery backup save you money?

The short answer is yes, absolutely. 

Home battery backup allows you to avoid the highest utility rates, especially if you’re on a time-of-use (TOU) rate or pay demand charges. We'll get more into this later on.


## **Environmental benefits**

Home battery backup can help you lower your carbon footprint by extending how long you can run on renewable power.

If you have solar panels, your batteries store the renewable solar energy that your panels create. You can then use that energy when your panels aren’t generating as much energy, such as when the sun isn't shining at night or in bad weather.

If you charge your battery from the grid, using your battery at times of peak energy demand does more than save you money. To meet all the demand at peak times, utilities have to turn on their oldest, "dirtiest" power plants. These "peaker plants" tend to emit more carbon emissions than other power plants. By drawing power from your battery during peak times, you’re avoiding that carbon-intensive power. You’re also lowering the overall demand curve, reducing the need for peaker plants in the first place.


## **Easier electrification**

As we transition more and more appliances from gas to electric, people raise valid concerns about their power bills and the grid. Will their power bills jump as a result of electrification? Will there be enough power to run everything as we electrify more and more? 

Yes, but home battery storage is critical to alleviating these concerns. The bill savings and flexibility gained from battery storage make electrification a more realistic option for many homeowners.

---

# **How long can backup batteries power a home?**

As power outages from extreme weather events become more frequent, many homeowners are looking for ways to increase their energy resiliency at home, whether that’s through a diesel generator, a solar generator, or home battery backup.

As mentioned above, a battery storage system will allow you to keep using electricity if you lose power. How long that backup protection will last depends on several factors. If you charge your battery from the grid, for instance, you have a finite amount of back-up power. If you have a solar battery backup system, you essentially have an "energy island." Your solar panels continue to generate electricity, which recharges your battery and lets you keep drawing power. 

An [encouraging study](https://emp.lbl.gov/news/study-provides-first-its-kind-nationwide) from Lawrence Berkeley National Laboratory and the National Renewable Energy Lab found that single-family homes with solar-plus-storage systems had enough emergency backup to keep critical loads powered throughout a multi-day power outage.  

This study makes an important point — it’s unlikely (although possible) that you would have enough battery storage to power your whole house in the event of an outage. However, you can keep the most important appliances running. This is the critical load mentioned in the study. A critical load panel allows you to select and power only the most important appliances during a power outage. For instance, you may want to keep your refrigerator powered but not your pool pump. 

Several other factors affect how long you can run on home battery backup. The size of your solar-plus-storage system matters — more generating capacity and more storage mean you have more solar energy for use. The weather also plays a role. If you’re in a temperate climate and don’t need to run your HVAC during an outage, for instance, you’ll be able to conserve more backup energy. If you live in an area with extreme heat or extreme cold and need to power your HVAC, you'll need even more power and your battery won't last as long.

If you want to be able to run your entire home off of battery storage, you have a couple options.

You can stack individual batteries to create more storage capacity in your home. While this is possible, it can get costly. 

You can also install a smart electrical panel to optimize your energy use. The smart panel will use real-time performance analytics to automatically ensure that you have the power you need for your priority appliances during an outage.

---

# **How much does a whole home battery cost?**

The average cost of a home battery system runs from $18 to $23K. Of course, the actual cost of your home battery storage system will depend on several factors, starting with the incentives you take advantage of. 


## **Incentives**


## There are a number of financial incentives for installing a whole home battery. 



* Federal incentives — Under the Inflation Reduction Act (IRA), you can get a tax credit for 30% of the cost of your battery system. The tax credit has no cap. 

* State incentives — A number of states offer incentives and rebates in addition to the tax credit through the IRA. For example, the[ Self-Generation Incentive Program](https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/self-generation-incentive-program) (SGIP) through the California Public Utilities Commission offers rebates for installing battery storage. To see what you may qualify for, check out the[ Database of State Incentives for Renewables & Efficiency](https://www.dsireusa.org/) (DSIRE).


When you get a home battery system with Haven, we’ll help you find all the incentives available to you. 

Beyond the various financial incentives available, the cost factors break down into two buckets: equipment and installation.


## **Equipment costs**

The cost for a battery itself will range from $9,000 to $11,000, depending on the battery quality you choose. Prepare to pay more for a high-quality battery. The battery chemistry makes a difference, too. Lithium ion batteries come in two main varieties with slightly different chemistries, and therefore slightly different costs. Lastly, the amount of backup power you want affects the cost. More battery capacity means more money, so your power needs will affect the cost.


## **Installation costs**

Equipment makes up around 40-60% of the total cost of a battery system. The rest is covered by installation and that cost will vary depending on the amount of electrical work required. When you choose to get a home battery system from Haven, installation costs are included in your estimate. 

Installing battery storage at the same time as a solar system requires a different amount of work than retrofitting an existing system, for instance. Whether or not you install a critical load panel to ensure that the battery power goes to the most important appliances will also make a difference. 

Finally, you may or may not need an inverter. Batteries store direct current (DC) energy, but home appliances use alternating current (AC) energy. Your storage system has to convert that energy to make the power output usable. Some systems come with an inverter, while others require a separate purchase. 

---

# **Can a whole home battery backup save money on power?**

Like we mentioned earlier, home battery backup helps you save money by avoiding the highest electric rates.  But how does that work, exactly? Let's look at two possible situations: if you have a time-of-use rate, and if you pay a demand charge on your power bill.

Under a TOU rate, the cost for electricity changes depending on the time of day. Electricity costs more at times of peak power demand, such as the early evening when people are coming home from work, turning on lights, and using more appliances. If you have battery storage, you can draw power from your battery system during those times, avoiding the peak electricity prices. When electricity prices fall again (typically overnight and in the middle of the day), you can switch back to drawing power from the grid.

With a demand charge, you pay a charge based on the amount of electricity that you use. Batteries reduce the total amount of energy that you need to draw from the grid, and consequently that you pay for. If you pair batteries with solar panels, you can store the free, renewable energy that your solar panels create, further reducing what you need to draw from the grid.

---

# **How do I choose a backup power supply for home use?**

So you’ve learned about home battery backup and you’re interested in installing battery storage at home. What’s next?


**Decide if home battery storage is right for you**

To decide if battery storage is right for you, you’ll want to consider several factors:



* Have you experienced a power outage? 

* Are you on a TOU rate or does your energy bill include demand charges? 

* Do you get net metering credit if you have solar panels?

If the answer to one or more of those questions is yes, then home battery backup could be a good option for you. 

_[Ready to take the next step? Get a quote from Haven today](https://havenenergy.com/request-quote/)_



**Determine the best home battery backup system for you**

Next, it’s time to decide whether you want to install a standalone battery system or a solar-plus storage system. There are pros and cons to each — for example, a solar-plus-storage system is more expensive to install but has the benefit of using solar to store free, renewable energy. What's best for you will depend on your unique needs and what you want your system to provide. Haven can help you weigh the options and decide which makes the most sense for your home.



**Get multiple quotes and compare your options**

Just like when you buy a car, install a new roof, or make any other big financial decision, you want to talk to multiple contractors and compare their quotes. When you’re comparing installers, however, it’s important to look at more than just price. Some other questions to consider:



* Is the contractor certified to install batteries? This is still a relatively new technology for residential customers, so it’s important to make sure your installer has the right credentials. 

* How much experience does the contractor have? 

* What is the quality and number of batteries in the quote? Do they meet your needs? 

* What kind of ratings and reviews has the contractor gotten from previous clients? 


It’s a big decision. When you work with Haven, you can know for certain that you’re working with experienced, vetted installers and getting the best option for your exact situation. We’ll be here for you every step of the way.

If you’re interested in learning more about whether home battery storage is right for you, we’re here to help. Get a quote on a home battery system or schedule a call with a Haven representative to ask questions and talk through the process.


From their ability to save you money on electricity to their use as backup power for your house, home batteries are growing in popularity. Home batteries let you store energy from the power grid or rooftop solar panels to use later. The energy from batteries can power any appliance in your home, which makes them particularly attractive during power outages. 

At Haven Energy, we’re here to demystify and simplify the home battery backup experience. We offer smart energy systems that allow you to effortlessly store and optimize your energy for maximum efficiency and reliability. And we make it easy, too. From evaluating your specific energy needs to designing and installing your battery system, we’re with you every step of the way. 

That starts with making sure you have all the information you need. So let’s get into it.



Home battery backup 101

Earlier this summer, we sent out a survey to 1,000 California residents to better understand how people were thinking (or not thinking)about energy storage. We found that **24%** didn't know about the specific [benefits of home batteries](https://havenenergy.com/batteries) and **34%** of respondents hadn't even heard of them!

Additionally, **78%** were unaware of the incentives available through California's **Self-Generation Incentive Program** (a tiered tranche of funds reserved for energy storage) - **$2,000** off the cost of each battery. And a whopping **80%** didn't realize they could claim a 30% federal tax credit on their battery system through the **Inflation Reduction Act**.

It's not exactly surprising that these benefits have gone unnoticed. No one is making viral TikToks about energy subsidies (yet). But it is a big missed opportunity. Battery storage is an essential tool for homeowners to deal with rising energy costs and increasingly intense climate events.

Wildfires, in particular, offer an especially compelling reason to consider batteries. Roughly half of the most destructive wildfires in California's history are attributed to the electrical infrastructure. To prevent spread, utility companies will proactively cut power to electric lines, which means more outages.

As the fire season stretches longer and longer, securing access to backup power is becoming less of a luxury and more a necessity. Despite this, nearly 69% of our survey respondents said they don’t have any preparations in place in the event of a wildfire in their area, including backup power, creating evacuation plans, and preparing their home to be less of a fire risk.

With Haven, homeowners can secure their maximum savings on a battery system and unlock 24/7 backup power and year-round energy savings.

Here's a snapshot of how some our customers are using their Haven systems:

![alt_text](https://havenenergy.imgix.net/images/testimonial_table.png "image_tooltip")

Haven handles every step of the process of getting energy storage - from choosing the right battery to system design, financing, installation, and ongoing support. After installation, we also help customers earn extra cash by enrolling them in our [Demand Response Program](https://havenenergy.com/demand-response). This allows homeowners to sell their extra stored energy back to the grid during times of high demand.

There's never been a better time [to get a free estimate on your future home battery system](https://havenenergy.com/request-quote). (Spread the word.)

---

Survey methodology

This survey was conducted July 6-10, 2023 by Haven Energy online through [AYTM](https://aytm.com/) among 1,000 adults 18+ located in California.

Sources:

Public Safety Shutoffs: [https://www.cpuc.ca.gov/psps/](https://www.cpuc.ca.gov/psps/)

From residential solar to widespread EV adoption, California has always been a leader in incentivizing smart energy choices. In recent years, the state has turned its attention to a new kind of workhorse: home batteries. Batteries prevent power outages, lower monthly electric bills, and help build a cleaner power grid. And today, they're the most accessible they've ever been. **The only trouble is, most Californians don't know about them**.


Batteries are here for Californians, but homeowners are missing out

# We made a tiny world

To tell the story of Haven, we made a tiny world. Well, a tiny neighborhood. There we were able to bring backup power to life and show how a battery charges during the day, when electricity is cheaper, then powers your home in the evening when rates go up. With the help of a tiny, shiny sunbather, we illuminated the benefits of installing a battery if you already have solar. [Californians, more on this here](https://havenenergy.com/energy-questions/everything-you-need-to-know-about-net-metering-and-battery-storage/).

Our vision for [a clean energy future](https://havenenergy.com/building-haven/why-we-build-this/) starts at home, with how we use energy every day. Practically speaking, this means having reliable backup power, lower electric bills, and a way to dramatically reduce carbon emissions. Sounds good, right?

Make your home a Haven. [Get a quote for your future home battery here](https://havenenergy.com/request-quote/) or [schedule a call with one of our energy specialists](https://meetings.hubspot.com/nathan661).


The first time I tried to tell someone how home batteries work, I got one minute into explaining time-of-use rates before their eyes glazed over and they said, "So it's like a generator?" I decided to share this video instead:

We made a tiny world


When you install a home battery system with Haven, you no longer need to rely on a single source of electricity. This means you can switch to your battery for backup power during emergencies and put an end to outages. With an aging grid and more climate-related weather events (we see you, atmospheric rivers!), home batteries deliver something priceless – energy independence and peace of mind. 

Home batteries also come with major economic and environmental advantages. 

Right now, people tend to pay more for electricity when they need it most, between 4pm and 9pm – the priciest time-of-use period. In contrast, a battery system from Haven will charge and store electricity when rates are low, then switch to battery power when rates go up. Customers will see lower monthly utility bills and energy savings year-round. 

For the climate, the collective impact of doing this is massive. As more households automatically tap in their batteries during peak periods, cities won't need to use dirty "peaker plants" to meet demand. This translates to cleaner air for everyone. And better sunsets. 

Homeowners with solar can add battery storage and further reduce emissions as they're able to store self-generated renewable energy to power their homes, no grid required. 

 

With all these benefits, home battery systems should be much more common. But until now, the process for getting one has been a mess of red tape and wrong turns. You might be able to buy a battery, but finding an electrician to install it could take weeks. Or you might get stuck trying to secure the right permits or financing. And even after your battery is installed, another DIY journey lurks: how to optimize it so you get the best performance and savings?

**With Haven, homeowners are guaranteed a simple, turnkey service for energy storage.** Anyone who wants backup power can get started with just a few clicks and one very relaxed phone call.

We take care of every step in the process – from choosing the right home battery to system design, financing, and installation. This includes locking in the lowest possible price on a battery system by maximizing every tax credit, incentive, and rebate available. 

Once your Haven battery is up and running, we provide ongoing support for any system or service maintenance and continually optimize your system to adapt to weather and grid activity. We also help our customers generate extra income through grid services programs. 

Today, we have a once-in-a-generation opportunity to transform how we use energy and how we impact the planet. Our work at Haven is to turn this opportunity into reality – empowering people with 24/7 backup power, year-round savings, and a meaningful way to reduce their carbon footprint. 

Ready to put more power in your hands? [Get a free estimate for your future home battery system.](https://havenenergy.com/request-quote/)

We’re on a mission to build a cleaner and more resilient energy future by making it easy for people to get 24/7 backup power, save on electric bills, and dramatically lower their carbon emissions.   Meet your future home battery system. 

Energy 101

Energy Questions

Building Haven