Will my solar panels keep running during a power outage?

Solar alone will not keep running during an outage. Standard grid-tied solar panels automatically shut off during a PSPS event. Solar paired with a battery using island-mode configuration lets your system run independently from the grid during outages.

What is NEM 3.0 and why does it make a battery more important?

NEM 3.0 replaced NEM 2.0 for new California solar customers. The credit for exporting solar to the grid is now based on a wholesale rate roughly 75-80% lower than retail peak rates. A battery closes this gap by storing midday solar for discharge during the 4-9pm peak window, making self-consumed electricity worth 6x more than exported electricity.

Does SMUD offer a battery rebate in 2026?

Yes. SMUD customers qualify for up to $5,400 per Powerwall through the My Energy Optimizer Partner+ program, with a $10,000 household cap. Tesla Powerwall units also qualify for the VPP program at $440 per year per unit. Enroll within 90 days of Permission to Operate. Verify current amounts at smud.org.

How much does a home battery backup system cost in California?

A single Tesla Powerwall installed typically runs $12,000-$15,000 before incentives. SMUD customers can reduce that with the up to $5,400 rebate. Financing options include LightReach Battery Lease at $0 down, Prepaid Lease at 30% off, low-interest financing from GoodLeap and EnFin, and PACE financing with no credit score required.

Does a home battery qualify for the 30% federal tax credit?

The federal Residential Clean Energy Credit expired for individual homeowner expenditures after December 31, 2025. However, third-party owned systems like Prepaid Lease and PPAs are structured so the third-party owner claims the commercial ITC through 2027 and passes the 30% discount directly to the homeowner at signing with no tax filing required.

🔋 California Solar Battery Backup · 2026

Solar Alone Won't Keep
Your Lights On.
A Battery Will.

Under PG&E's NEM 3.0, every kilowatt you export earns a fraction of what it costs to buy back at peak. A home battery stores your solar and discharges it when it counts — evening peak hours and PSPS outages. Here's everything California homeowners need to know in 2026.

⚡ NEM 3.0

Solar Exports Are Worth Less Now

Under PG&E's Solar Billing Plan, exporting midday solar earns a low wholesale credit. Buying it back at 4–9pm costs full retail. A battery closes that gap — store it, use it yourself.

🔥 PSPS Outages

Solar Shuts Off When the Grid Goes Down

Grid-tied solar panels automatically shut off during PSPS events. A battery with island-mode keeps your AC, refrigerator, and critical loads running through multi-day outages — no generator needed.

💰 SMUD Rebate

Up to $5,400 Back Per Powerwall

SMUD customers in Sacramento, Folsom, and Elk Grove qualify for up to $5,400/Powerwall in battery rebates plus $440/yr VPP program. Cap $10K per household. Enroll within 90 days of PTO.

Why Battery Backup Is No Longer
Optional Under NEM 3.0.

California's updated net metering rules changed the economics of solar fundamentally. Without a battery, you export your cheapest power and buy back the most expensive. With a battery, you flip that equation entirely.

Solar Without Battery vs. Solar With Battery

Same system. Same panels. Completely different bill impact under NEM 3.0.

⚠️ Solar Only — No Battery

Midday export credit~$0.05/kWh

Evening peak rate~$0.31/kWh

Gap per kWh~$0.26 loss

PSPS backupNone

Est. monthly bill~$140–$170

✅ Solar + Battery

Midday solar storedFull value

Evening discharge rate~$0.31 saved

Self-consumption value6x export rate

PSPS backupFull home

Est. monthly bill~$30–$60

Illustrative estimates only. Actual results vary based on system size, usage, rate plan, and battery configuration confirmed at time of quote.

🔋 Installed Battery Options · California

Three Batteries.
One Right Fit for Your Home.

We install Tesla Powerwall, SolarEdge, and Enphase batteries — sized and configured to your home's usage, roof, and utility territory. Every proposal shows your battery ROI vs. solar-only side by side.

Straight Answers for
California Homeowners.

Questions specific to solar battery backup in California — including NEM 3.0, PSPS, SMUD rebates, and how to choose the right battery for your home.

Solar alone — no. Standard grid-tied solar panels automatically shut off during a PSPS event or outage. This is a required safety measure so utility workers aren't endangered by live backfeed on downed lines. Solar + battery — yes. A home battery with island-mode configuration lets your system run independently from the grid. Your panels charge the battery during daylight and the battery powers your home through the night or multi-day outage. Battery options with island-mode capability include Tesla Powerwall, SolarEdge, and Enphase IQ Battery. See which battery fits your home →

NEM 3.0 — also called the Solar Billing Plan — replaced NEM 2.0 for new California solar customers. The key change: the credit you earn for exporting solar to the grid is now based on a wholesale rate roughly 75–80% lower than what you pay to buy power back at peak hours. Under NEM 2.0 you got nearly dollar-for-dollar credit. Under NEM 3.0 that gap is much wider. A battery closes the gap entirely — by storing midday solar and discharging during the 4–9pm peak window, you self-consume at full retail value instead of exporting at wholesale. Every Kilowatt-hour you self-consume is worth 6x more than what you'd earn exporting it.

Yes — SMUD customers in Sacramento, Folsom, and Elk Grove qualify for up to $5,400 per Powerwall through the My Energy Optimizer Partner+ program ($500/kWh minus 20% holdback on 13.5 kWh). The household cap is $10,000. Two Powerwalls = up to $10,800 in rebates. Tesla Powerwall units also qualify for the Virtual Power Plant (VPP) program at $440/yr per unit ($110/quarter). Enroll within 90 days of Permission to Operate on the SSR rate. Rebate amounts are subject to change — always verify current amounts at smud.org. Full SMUD battery rebate details →

All three are quality installed battery options — the right choice depends on your existing or planned solar system. Tesla Powerwall is the most popular choice for California homeowners — 13.5 kWh, whole-home backup, island mode, SMUD rebate and VPP eligible, Storm Watch auto-charging. SolarEdge Battery is DC-coupled and integrates natively with SolarEdge inverter systems for maximum efficiency — best if your system uses SolarEdge equipment. Enphase IQ Battery is AC-coupled and modular — works with any solar system including Enphase microinverters and allows you to start smaller and expand capacity later. We size all three options to your home and show you the comparison at time of quote. Get a free battery comparison →

Yes — a battery can be added to most existing solar systems. The best option depends on your current inverter and equipment. Enphase IQ Battery is AC-coupled and the most flexible for retrofits — it works with virtually any existing solar system. Tesla Powerwall can also be retrofitted to most systems. SolarEdge Battery requires a SolarEdge inverter. We assess your existing equipment during the free estimate process and recommend the most compatible option. Adding a battery later is possible but typically costs more than bundling at initial installation — if you're planning to add one eventually, bundling now is almost always the better financial decision.

Battery costs vary by brand, capacity, and installation complexity. A single Tesla Powerwall installed typically runs $12,000–$15,000 before incentives. SMUD customers can reduce that significantly with the up to $5,400 rebate. Financing options include the LightReach Battery Lease at $0 down, the Prepaid Lease at 30% off upfront, low-interest solar financing from GoodLeap and EnFin (650+ credit), and PACE financing with no credit score required. Every proposal shows your full cost and bill impact side by side before you sign anything. Get exact pricing for your home →

The typical payback period for a solar + battery system in California is 10–12 years, depending on your utility territory, usage, system size, and financing structure. Under NEM 3.0, battery-paired systems recover costs faster than solar-only because of the self-consumption advantage — you're saving more per kilowatt-hour than you would by exporting at low wholesale rates. SMUD customers with the battery rebate stack see the strongest economics. A free estimate shows your projected payback for your specific home, usage, and rate plan. See your payback estimate →

The federal Residential Clean Energy Credit (ITC/25D) expired for individual homeowner expenditures after December 31, 2025. For installs placed in service on or after January 1, 2026 — which covers most current installations given typical 30–45 day timelines — the 30% tax credit is no longer available to homeowners directly. However, third-party owned systems (Prepaid Lease and PPAs) are structured so the third-party owner claims the commercial ITC through 2027 and passes the 30% discount directly to you at signing — with no tax filing required on your part. We show exactly how this works in your proposal. See your options →

Solar Alone Won't Keep
Your Lights On.
A Battery Will.

Why Battery Backup Is No Longer
Optional Under NEM 3.0.

Three Batteries.
One Right Fit for Your Home.

Straight Answers for
California Homeowners.

Stop Exporting Cheap Power
and Buying Back Expensive.

See What Your Home
Actually Qualifies For

Solar Alone Won't Keep Your Lights On. A Battery Will.

Why Battery Backup Is No Longer Optional Under NEM 3.0.

Three Batteries. One Right Fit for Your Home.

Straight Answers for California Homeowners.

Stop Exporting Cheap Power and Buying Back Expensive.

See What Your HomeActually Qualifies For

Solar Alone Won't Keep
Your Lights On.
A Battery Will.

Why Battery Backup Is No Longer
Optional Under NEM 3.0.

Three Batteries.
One Right Fit for Your Home.

Straight Answers for
California Homeowners.

Stop Exporting Cheap Power
and Buying Back Expensive.

See What Your Home
Actually Qualifies For