Battery Rebates in California (2026)

California runs the Self-Generation Incentive Program (SGIP) — the most generous statewide battery storage rebate in the US — paying $150 to $1,000 per kWh of installed battery capacity. SGIP combines with the federal 25D credit (30% uncapped) for residential battery storage of 3 kWh or larger. Equity tier (≤80% AMI or DAC residency) and Equity Resiliency tier (medical baseline customers, wildfire fire-threat zones) deliver the highest per-kWh rebates. PG&E, SCE, and SDG&E all administer SGIP. Standalone batteries qualify under both federal 25D (since 2023) and SGIP — solar prerequisite is no longer required for either.

California battery programs available

Program	Amount	Type	Authority	Deadline
SGIP General Market	$150 per kWh	Rebate	CPUC	Ongoing
SGIP Equity Budget	$850 per kWh	Rebate	CPUC	Ongoing
SGIP Equity Resiliency	$1,000 per kWh	Rebate	CPUC	Ongoing
Federal 25D Residential Clean Energy Credit	30% uncapped	Tax credit	IRS	Ongoing
PG&E EV2-A Rate (battery+EV pairing)	Reduced TOU charging	Net metering	PG&E	Ongoing
Tesla Powerwall Virtual Power Plant	~$2 per kWh exported during events	Performance payment	PG&E + SCE pilots	Ongoing

Eligibility quick check

How is Equity tier determined?

≤80% Area Median Income, residence in a Disadvantaged Community (DAC) census tract per CalEnviroScreen, or participation in CARE/FERA utility programs.

Equity Resiliency tier?

Medical baseline customers, residents in Tier 2/3 fire-threat districts (CalFire FHSZ), or those in Public Safety Power Shutoff (PSPS) zones with prior outages.

How to stack with the federal credit

California programs combine with the federal 25D 25D Credit (30% of cost, no cap) — see the 25D guide for filing instructions and forms.

Worked stacking example

San Francisco homeowner adds 13.5 kWh Powerwall 3 at $13,000: federal 25D 30% = $3,900. SGIP Equity Resiliency $13,500 (if qualified) — exceeds install cost (capped at install). Net cost $0 for qualifying medical baseline customer.

Frequently asked questions

How much does Tesla Powerwall 3 cost in California? +

13.5 kWh usable capacity, $11,500–$15,000 installed including gateway. Federal 25D 30% = ~$3,500 credit. SGIP General Market $2,025. Equity tier $11,475. Equity Resiliency $13,500.

Standalone battery without solar — does SGIP apply? +

Yes. SGIP does not require solar pairing. Federal 25D since 2023 also applies to standalone 3+ kWh batteries.

How fast do SGIP blocks fill? +

General Market reservations open by step (declining $/kWh). Each step depletes within months. Reserve through installer at contract.

Tesla Powerwall VPP — meaningful payment? +

PG&E + Tesla VPP pilots paid ~$2 per kWh exported during grid events in 2023–2024. Annual income $200–$600 for typical customer.