Federal Solar Tax Credit Eliminated Jan 1, 2026
Battery storage no longer qualifies for the 30% federal ITC (Section 25D expired December 31, 2025). All payback calculations below reflect post-25D reality — no federal credit is applied. Your economics are driven by TOU arbitrage, backup value, state incentives, and Virtual Power Plant revenue.
Battery-Only Payback Calculator
At what price does a home battery actually pay for itself? Get an honest answer with state-specific rates, backup value, incentives, and Virtual Power Plant revenue — for homeowners with or without solar.
Most battery calculators were built before the 25D elimination. Ours reflects 2026 reality — modeling VPP revenue, TOU arbitrage, backup value, and state-specific incentives that generic tools miss.
Your Situation
Heads up: A battery without solar has limited upside. It can still earn through time-of-use arbitrage, outage protection, and Virtual Power Plant programs — but it can't capture free solar charging. The math below reflects that honestly.
Enter state or ZIP (we'll look up the rest)
e.g. 13.5 for a Powerwall
Leave blank to estimate at ~$1000/kWh
Optional — refines solar-charging estimate
Typical: 1 (full cycle/day)
Hours of essentials coverage
Your Results
Simple Payback
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Years to recover net cost
10-Year Net Savings
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After net cost (3%/yr rate escalator)
Break-Even Price
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Max you should pay (10-yr)
VPP Revenue
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Per year, if enrolled
Estimated Annual Savings
Where your battery's yearly value comes from
| Component | How it's calculated | Annual Value |
|---|---|---|
| Total Annual Savings | — | |
Cost After Incentives
Gross Cost
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Federal Credit
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State Incentive
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Net Cost
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Section 25D — which required a battery to be charged by renewables ≥80% of the time — expired December 31, 2025. Owned-residential batteries installed in 2026 receive no federal tax credit. Energy storage is exempt from the 48E wind/solar July 4, 2026 cutoff (26 USC 48E(e)(4)(C)): commercial, rental, and third-party-owned storage follows the standard 48E phase-down (30% for construction starts through 2033, stepping down thereafter) and is not covered by the 48E(i) residential lease denial. An owned battery on your primary residence still gets $0 federal credit.
Ready to Compare Battery Quotes?
Get multiple quotes from certified battery installers in your area and compare real pricing side-by-side.
Get Battery QuotesPick your situation above, enter your state or ZIP, monthly bill, and battery size — then click "Calculate Payback" to see whether a battery makes financial sense for you.
Assumptions & data sources: Calculations assume ~1 full cycle/day, 90% depth-of-discharge and 90% round-trip efficiency, ~$5/kWh value of lost load for outage protection, and a 3%/year electricity-rate escalator. The federal Residential Clean Energy Credit (25D) expired December 31, 2025, so no federal credit is applied to net cost for owned-residential batteries in 2026. State time-of-use peak/off-peak spreads, battery incentives, outage hours, and Virtual Power Plant programs are curated averages — as of 2026 and subject to change. Always verify current programs with your utility and the DSIRE database.