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Home Batteries Got More Expensive in 2026 Here's How California Homeowners Are Still Getting Backup Power
Home Batteries Got More Expensive in 2026
Here's How California Homeowners Are Still Getting Backup Power
Most homeowners want a battery. Far fewer end up installing one, and the price tag is a big reason why. EnergySage's latest marketplace report shows interest in home batteries at 76%, the highest it has recorded. But only 31% of buyers actually added storage, down from 39% the period before, as reported by Mercom.
What changed on price
The median U.S. battery price reached $1,130 per kWh in the first half of 2026. That is up 5% from the prior half-year and 9% from a year earlier. EnergySage's Thompson attributes the rise to more complex, time-intensive installs and higher contractor labor costs, per Now.Solar. The 30% federal solar tax credit has also ended, which removed a major incentive. California homeowners felt it too. The share adding a battery fell to 58% from 71%.
Why more installers are quoting a different model
Installers have noticed the gap between wanting a battery and paying for one up front. The share quoting third-party ownership options rose from about 14% to about 41% in the same period. In California, EnergySage found average PPA pricing came in 59% below local utility rates, the largest gap of any state it tracked. Rates here reach 35 cents per kWh in some cases, according to the report. Your own results depend on your utility, usage and program.
How third-party ownership (TPO) works
With a TPO program, a company installs, owns and maintains the solar and battery system on your home. You pay for the power it produces without buying, leasing, or financing equipment. Many programs are designed to come in below utility rates, with savings of up to 40% depending on your home and program. That means a rising battery price does not have to decide whether you get backup power. To see if it could work for your home, compare TPO solar and battery options and look for: Battery included in the agreement, sized for evening use and outages.
Maintenance and monitoring covered for the full term. Transfer terms if you sell your home. Curious about your address? Start with a quick qualification check.
To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org
Mercom India, US residential solar prices rise 3% as market adjusts to tax credit expiry, Oct. 6, 2026: mercomindia.com
Now.Solar, US homeowners lost the 30% solar tax credit but financing kept solar and storage viable, Oct. 8, 2026: now.solar
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