2026 update: The federal residential solar tax credit (Section 25D) expired December 31, 2025. Prices on this page reflect 2026 costs without the ITC. Commercial solar (Section 48E) still has a 30% credit →
Quick Answer
A home solar battery system in 2026 costs $8,000–$20,000 installed, depending on capacity and brand. The Tesla Powerwall 3 (13.5 kWh) runs $9,200–$11,500 installed; the Enphase IQ Battery 5P (5 kWh) is $8,500–$10,500 for a single unit. Most homes need 1–3 batteries for meaningful backup coverage. The federal residential battery storage tax credit (Section 25D) expired December 31, 2025 — batteries installed as part of a solar system before that date were eligible for the 30% credit.
| Battery Model | Capacity | Installed Cost (1 unit) | Backup Coverage |
|---|---|---|---|
| Tesla Powerwall 3 | $9,200 | $11,500 | 13.5 kWh, 11.5 kW peak output |
| Enphase IQ Battery 5P | $8,500 | $10,500 | 5 kWh, stackable up to 4 units |
| Franklin WH10 (10 kWh) | $9,000 | $12,000 | 10 kWh, whole-home capable |
| SolarEdge Home Battery | $7,500 | $10,000 | 10 kWh, SolarEdge inverter required |
| Generac PWRcell (9 kWh) | $10,000 | $14,000 | Expandable, whole-home backup |
| 2-battery system (avg) | $16,000 | $22,000 | Full-day backup for avg. home |
The federal residential battery storage tax credit (Section 25D) covered 30% of battery costs when installed as part of a solar system, and also applied to standalone battery installations (batteries not paired with solar were added to 25D eligibility in 2023). That credit expired on December 31, 2025. Batteries installed and placed in service before that date — whether paired with solar or standalone — are still eligible if you haven't yet filed your 2025 taxes. Use IRS Form 5695. For 2026 buyers, the economics shift: battery payback periods are longer without the credit, but grid reliability concerns and time-of-use rate arbitrage still make storage valuable in certain markets.
Battery capacity (kWh)
More capacity means longer backup runtime and more arbitrage potential. A 10–14 kWh battery covers essential loads (refrigerator, lights, phone charging) for 12–24 hours. Whole-home backup typically requires 20–40 kWh (2–3 batteries).
AC vs. DC coupling
DC-coupled batteries (SolarEdge, Enphase) integrate directly with the solar inverter and are more efficient but require compatible equipment. AC-coupled batteries (Powerwall, Franklin) work with any existing solar system and are more flexible.
Installation complexity
Adding a battery to an existing solar system costs more in labor than installing battery + solar together. Electrical panel work, transfer switch installation, and utility notification add $500–$2,000 in soft costs.
Utility rate structure
Time-of-use (TOU) rates make batteries more valuable — charge during off-peak hours, discharge during peak hours to avoid high rates. Flat-rate utilities offer less arbitrage value.
State incentives for storage
California's SGIP (Self-Generation Incentive Program) still offers rebates for battery storage, particularly for low-income households and high fire-risk areas. New York's Con Edison and PSEG programs also offer storage incentives.
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A Tesla Powerwall 3 (13.5 kWh) costs $9,200–$11,500 installed as of 2026. Tesla sells Powerwalls exclusively through its own installation network and certified installers. The price includes the battery unit, gateway, and installation labor. Multiple Powerwalls can be stacked for whole-home backup.