Power outages are an occasional nuisance for everyone, but for some people, they're a far too regular occurrence: According to the Energy Information Administration, in 2021, the average U.S. electricity customer experienced 7 hours of electricity interruptions across fewer than two interruption events. However, customers in Louisiana and Oregon averaged over a day in cumulative outage time in 2021.

Next, you'll need to schedule a site visit with your installer as a final check to ensure your battery system is suitable for your home. They'll check your electrical panel to decide if it needs to be upgraded or if you should add a critical loads panel, as well as your roof if you're installing a solar-plus-storage system. An installer can conduct a site visit either in person or virtually.

A solar-plus-storage system is likely a worthwhile investment if you're experiencing prolonged power losses multiple times each year. Unfortunately, your solar panels alone won't power your home during an outage because it's a safety risk to utility workers.

The best way to get a great deal on your battery system is to compare quotes based on factors like cost, equipment, and installer reputation. If you're looking for a solar-plus-storage system, the free EnergySage Marketplace makes this easy by gathering up to seven custom quotes for you from our network of pre-screened installers. The best part? On average, shoppers who receive quotes on EnergySage pay 20% less for their systems than those who don't.

Even if you don't have solar, batteries alone can be worth it if your utility uses a complex electricity rate structure. Time-of-use, or TOU, rates are a form of "time-varying rates" designed to better reflect the actual cost of electricity based on the amount of supply and demand. Utilities have used TOU rates for businesses for many years, but they're becoming an increasingly common way to charge homeowners. Under TOU rates, your cost of electricity will vary from hour to hour, day to day, and season to season. With a battery, you can use your stored energy to avoid pulling electricity from the grid when it costs the most.

However, a growing number of states are changing their policy to compensate you at a much lower rate for the electricity you send to the grid compared to what you pay when you pull from the grid. These new solar compensation rates are typically based on the avoided cost rate, or the price your utility company would pay to purchase this electricity elsewhere; sometimes, they're quite high, and other times, you barely receive any compensation for exporting electricity to the grid.

You don't need a home solar panel system to reap the benefits of batteries, but you'll get the most out of your system when you pair them together––especially if your utility doesn't pay you a lot for the excess electricity your solar panels generate and send to the grid.

But if you live somewhere with net metering and a flat, non-time varying electricity rate, the only financial savings from installing energy storage come from avoiding outages or receiving any available state incentives. In those instances, you won't see any more bill savings from adding a battery to your solar panel system.

Most batteries last about 10-15 years, meaning you'll have plenty of time to break even on your investment. While many homeowners can benefit from installing a battery system, they're not right for everyone. Here are a few questions to answer when deciding if you should add a battery to your home:

If you have a solar panel system, when the sun's shining, it will likely produce more electricity than you need. Many states have a solar policy called net metering, in which you receive credits from your local utility company for the excess electricity you send to the grid.

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You don't need solar to install a home battery, but remember that batteries only store energy—they don't produce it. To truly increase your grid independence and your electric bill savings, you'll want to pair your battery system with a solar power system. Here's how it works:

But home backup batteries are becoming an increasingly popular choice over home generators. They offer many of the same backup power functions as conventional generators without the need for refueling. While they're more expensive upfront and require an electrician to install, when paired with solar panels, you can "refuel" them for free with the sun's energy. They're also much quieter than generators and don't come with emissions-related health concerns.

For most battery systems, there's a limit to how much energy you can store in one system. To store more, you need additional batteries. And, in most cases, batteries can't store electricity indefinitely. Even if you don't pull electricity from your battery, it will slowly lose its charge over time.

Batteries aren't for everyone, but in some areas, a solar-plus-storage system can offer higher long-term savings and faster break-even on your investment than a solar-only system.

If you're ready to install a home battery system, we're here to help. Here's how to get started without feeling overwhelmed:

According to the Energy Information Agency (EIA), the average American home uses about 30 kWh of electricity each day, probably closer to 25 kWh in the winter and 35 kWh in the summer. If you do want to install an off-grid solar battery system, you’ll need more than just a 13 kWh Tesla Powerwall: To power your home for a full day, you’ll need a battery system that’s at least 30 kWh. Depending on how much inclement weather you experience, you could need enough battery capacity to power your home for multiple days in a row.

A solar-plus-storage system at your home is essentially a mini power plant. When you aggregate enough of these home systems, they become one "virtual" power plant (VPP), which can offset the electricity your utility company needs to generate, providing more grid resiliency and helping avoid significant infrastructure investments.

In our experience, when people ask about going off-grid, what they often mean is: “Will this battery power my home if the grid is down?” Peace of mind is one of the primary benefits that a home battery provides. So while you may not be able to go fully off-grid (or at least without spending a lot of money to do so), you will be able to power your home without the grid.

At this point, you've done all the hard work on your end. Now it's time to watch it pay off with a brand-new battery system! Before installation day, your installer will begin submitting the paperwork required for installation and any available incentives. Battery installations typically require at least two electricians and can take anywhere from a few hours to over a day, depending on the battery you choose and the amount of electrical work required.

Under bring your own battery (BYOB) programs, you provide your utility access to your battery's stored energy when electricity demand is high and the grid is stressed. You earn money on a dollar-per-kilowatt ($/kW) basis for the power your utility pulls from your battery during these "events."

In 2024, a 10 kWh battery costs about $8,000 after the federal tax credit based on thousands of quotes through EnergySage.  This price tag is high, but if you've determined that a battery is right for you based on your answers to the questions we outlined so far, it will pay off over time.

If you want to install a home battery but are overwhelmed by the cost, don't worry: Plenty of incentives are available that will significantly lower the price. Depending on where you live, you could break even on your storage investment in less than a year! Here are some of the top battery incentives that will either reduce your upfront cost or increase your long-term savings:

The federal investment tax credit (ITC) is today's best battery incentive. Unlike a tax deduction (which reduces your taxable income), the ITC allows you to apply 30% of your battery system's upfront cost as a credit toward your federal tax bill. If you've already paid your taxes during the year, you can even receive the ITC as a refund, as long as it doesn't exceed your total tax liability. If it does exceed your tax liability, the remaining credit will roll over to the following year.

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When you picture a battery, the first thing to come to mind is probably the disposable batteries you put in everyday appliances like your TV remote. But did you know you can power your entire house with (much larger) batteries?

Now that you have multiple quotes to compare, it's time to choose the best installer for you. EnergySage's mission is to help you choose with confidence. Our team of expert Energy Advisors can walk you through your quotes (even if you didn't get them through EnergySage) and answer all your questions so you can pick the system that meets your needs at the right price. Once you've selected an installer, you'll need to sign a contract – make sure to first review it thoroughly for details on costs, incentives, equipment, cancellation terms, and clauses.

While you can go off-grid with batteries, it will require a lot of capacity (and a lot of money!), which means most homeowners don't go this route.

Under these policies, you could still have a hefty electric bill even with solar. By pairing your solar panels with a battery, you can program your system to export electricity to the grid only when compensation rates are high and pull from your battery when rates are low, maximizing your savings.

Participation in a VPP is often limited by the equipment you select and your utility company. Some battery and installation companies, like Tesla and SunPower, have partnered with specific utility companies so you can easily enroll in available VPPs.

Demand charges are also common for businesses and are becoming more common for homeowners. With demand charges, your utility company tracks your maximum energy pull from the grid during any given hour (or even fifteen-minute period) per month and charges you based on that maximum demand for the whole month. With a battery, you can lower your peak demand from the grid, driving significant bill savings.

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Some states and utility companies will pay you upfront rebates just to install a battery connected to the grid. For example, California's Self-Generation Incentive Program (SGIP) provides an upfront rebate based on the capacity of your battery on a dollar-per-kilowatt-hour ($/kWh) basis. The value depends on your income level and if you live in a high-fire threat district and could cover the full cost of your battery in some cases.

These types of programs often limit the battery inverter equipment you can select, so make sure to check the list of approved brands before installing your battery system.

When you install a solar-plus-storage system with islanding capabilities (meaning it has the proper equipment and wiring to automatically disconnect from the grid during a power outage), you can continue running your home, even when the grid goes down.

If you participate in a VPP, you can earn money by allowing your utility to access your battery when the grid is stressed (similar to BYOB programs) or by simply using electricity from your battery instead of pulling from the grid during these times. Some VPPs offer a one-time payment for participation, while others will pay you on a $/kWh basis, so the more energy you contribute, the more you earn.

For example, if you're a California homeowner looking to go solar, your utility will put you on a particular TOU rate plan, and you won't have access to net metering, making you a great fit for a home battery. By installing a solar-plus-storage system instead of a solar-only system in California, you could save $21,600 to $43,900 more over 20 years. So despite the higher upfront costs, you break even on your investment 1-2 years sooner.

Batteries aren't the only form of home energy storage. If you've experienced a power outage in the past, you may have already invested in a generator.

For example, battery owners in Massachusetts can participate in the state's ConnectedSolutions program, which provides a $275/kW incentive per event. In this program, you'll earn about $1,375 each year with a typical home battery, which, on its own, could pay for your system in under ten years.

Batteries store energy produced now for use later, providing flexibility for meeting your demand with supply. If you only have solar panels, any electricity they generate that you don't use goes to the grid. Batteries enable you to store that excess electricity instead so you can use it when your panels aren't producing enough to meet your demand.

While you can go off-grid with a solar battery storage system, unless you’re willing to dramatically restrict your energy usage when the sun isn’t shining, a fully off-grid system will cost you a lot of money—likely at least $40,000.

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The DC solar energy flows through an inverter (or multiple inverters), which converts it to alternating current (AC) electricity, the type of electricity that most home appliances use.

After the sun sets or on a rainy day when your panels aren't generating enough energy, you'll pull electricity from the grid, which will count against the credits you've banked over time. At the end of your billing cycle, you'll only be billed for your "net" energy consumption (meaning your electric bills could be $0)!

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Before 2023, your battery needed to be paired with solar and be powered by solar at least 75% of the time for five years to qualify for the ITC. Now, under the Inflation Reduction Act, your battery system just needs to be over 3 kWh in size to qualify–it no longer has to be paired with solar.

We explain how to decide if backup batteries are right for you and, if so, how to get a battery system that fits your needs at the best price.

There are three main ways to pay for solar: upfront with cash, with a loan, or with a lease. Each option has pros and cons, so you must decide which works best for you now and which will pay off the most long-term. Generally, we recommend paying with cash for the best long-term savings or a loan if you want to start saving immediately.

Whether you frequently experience outages, are paying exorbitant electric bills, or simply want more energy independence, batteries can be a great investment for your home.