What it costs, what's permitted, and what to ask before you hire.
Last verified: 2026-05-31 · Well-sourced
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Utility impact
Electric & gas: PG&E
Pacific Gas & Electric
As of 2026-05-30, PG&E's default residential electric plan is E-TOU-C, a time-of-use plan with a 4-9 PM peak window. Alternatives include E-TOU-D (5-8 PM peak), EV2-A (whole-home TOU optimized for EV charging, lowest rates 12 AM-3 PM daily), and E-ELEC (a newer flat-rate-style plan for fully-electric and NEM 3.0 solar households, and the default plan when registering new residential solar under NEM 3.0). In March 2026, PG&E restructured residential rates under AB 205's income-graduated fixed charge framework, adding a flat Base Services Charge (~$24/month for non-CARE households; CARE/FERA pay a reduced fixed fee) paired with a per-kWh price cut. Households planning heat-pump HVAC, EV charging, or whole-home electrification may want to compare E-TOU-C, EV2-A, and E-ELEC; verify current rates and plan rules at the provider site.
$12,000–$22,000 — Installed cost for a single-family Bay Area home adding a 10–15 kWh residential lithium-ion battery (e.g., Tesla Powerwall 3, Enphase IQ Battery 5P, FranklinWH) paired with new or existing solar, pre-incentive. Range covers a single battery at the low end through a paired-unit configuration at the high end. Excludes service-panel upgrades, sub-panels for partial-home backup, and major electrical rework.
Section 25D Residential Clean Energy Credit (battery storage)
Expired Dec 31, 2025. For 2023–2025: 30% of total installed cost, no cap (battery capacity at least 3 kWh). EXPIRED: This federal credit ended Dec 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Expenditures made after Dec 31, 2025 do not qualify — for §25D, the IRS treats the expenditure date as the date the installation is placed in service (completed), not the date of payment. A homeowner who paid a deposit in 2025 but whose system was placed in service in 2026 does not qualify. For installations placed in service during 2023–2025, the credit applied to battery storage systems with a rated capacity of at least 3 kilowatt-hours installed in a U.S. home used by the taxpayer as a residence (existing homes and new construction; principal residence not required; rentals not occupied by the taxpayer did not qualify). Standalone batteries (not paired with solar) were explicitly eligible from Jan 1, 2023 onward. The credit was nonrefundable with carryforward. Homeowners with eligible 2025 placed-in-service installations may still claim the credit on their 2025 federal tax return. Verify with a qualified tax professional.
California Self-Generation Incentive Program (SGIP) — residential battery storage
Up to $1,000/kWh (Equity Resiliency tier) or $1,100/kWh (Residential Solar and Storage Equity / San Joaquin Valley Residential tiers); General Market 'Small Residential Storage' tier up to $150/kWh. Per-project totals depend on installed battery capacity (kWh) and tier eligibility. Administered by the California Public Utilities Commission (CPUC) and delivered through utility program administrators (PG&E, Center for Sustainable Energy / SDG&E territory, SoCalGas, SCE; LADWP application opening separately). Tiers as of 2026-05-30: (1) Residential Solar and Storage Equity ($1,100/kWh) — available to low-income residential electric and/or gas customers in California; reservation window opened June 2, 2025. (2) Equity Resiliency ($1,000/kWh) — for IOU residential customers meeting additional eligibility criteria (typically high fire-threat district residency and/or medical baseline / income qualification — verify against the SGIP Handbook). (3) San Joaquin Valley Residential ($1,100/kWh) — PG&E and SCE residential customers in the San Joaquin Valley pilot footprint. (4) Small Residential Storage ($150/kWh) — General Market IOU residential customers. Applicants must reserve funds before installation; reservations require a one-year completion window and enrollment in a qualified Demand Response program. Tier eligibility, income documentation, and HFTD-tier residency must be verified against the current SGIP Handbook and the customer's utility administrator. Homeowners should consult their SGIP program administrator before signing a contract.
As of 2026-05-31, residential battery energy storage system (ESS) installations in San Francisco are governed jointly by the Department of Building Inspection (DBI) and the San Francisco Fire Department (SFFD) Bureau of Fire Prevention. Per 2022 California Fire Code §105.6.5, a construction permit is required to install an ESS regulated by §1207. Under SFFD Administrative Bulletin 5.12 (Energy Storage Systems in R-3 Occupancies), individual ESS units are limited to 20 kWh, and an aggregate ESS capacity above 20 kWh on a single property typically requires submission of detailed plans to DBI rather than an instant online permit. Eligible installations — existing one- or two-family R-3 homes with no panel upgrade, no ballasted or ground-mounted systems, and compliance with AB 5.12 — may obtain instant electrical permits via SolarAPP+ when paired with a PV system 4 kWdc or smaller, or via DBI's instant online electrical permit pathway for storage 20 kWh or less. Siting rules from AB 5.12 include 3-foot clearance in front of electrical equipment for maintenance, minimum 3-foot separation from the property line for exterior installs (reducible to 12 inches with a 1-hour free-standing fire barrier), and additional fire-rating requirements for attached-garage installs per CFC §1207.11.3 and CRC §R302.6. Existing fire alarm systems may require a separate Fire-Only electrical permit to extend heat detection and notification to the ESS. Verify the current AB 5.12 edition, clearance, and fire-detection requirements with DBI, SFFD, and the installing contractor.