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4 Reasons Batteries are this Summer’s Hottest Deal

Kyle Ritland

May 2020

Battery Quick Mock. Up_Smaller-1For many years, batteries have been considered the final step in the welcome migration away from the grid. And rightly so, since batteries dramatically expand the effectiveness of residential solar by allowing you to store your excess energy for use whenever you want, including nighttime hours.

Adding a residential battery system in Arizona just got a whole lot more affordable thanks to a recent clarification of the solar Investment Tax Credit (ITC), and a landmark settlement between Tesla and SRP that delivers up to $3,600 battery incentives for customers across SRP. These incentives have both time and quantity limits, so if you’ve been considering batteries, read on for the critical details!


1. SRP battery incentives up to $3,600 for first 4,500 customers

In March, Tesla and SRP announced a resolution to Solar City’s 2015 lawsuit. As a result, SRP is now offering incentives up to $3.600 ($300 per DC-kWh) for customers who purchase and install qualifying battery storage systems. This includes Tesla Powerwall battery products, as well as other qualifying brands. Batteries can be integrated into a new solar purchase, installed into existing systems, or installed without solar and charged entirely from the SRP grid (this last option negates the federal tax credit, see #2). This incentive is available for up to 4,500 SRP customers on a first-come first-served basis during a 36-month period, beginning in May 1st, 2018. If you're a SRP customer and you're interested in taking advantage of this great promotion, click the button below.

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2. 26% tax credit applies to batteries powered by solar

Regardless of utility, as long as your battery is 100% filled by solar energy, you can apply the 26% federal solar Investment Tax Credit (ITC) to your battery purchase. The battery must be installed and fully operational to qualify, and you must own or finance the system, rather than leasing it. The tax credit cannot be applied to batteries powered by the grid. And remember, the 26% ITC is only available through 2022. In 2023, the incentive drops to 22% before ending in 2024. So, if you’ve been considering batteries, now is the time to act.


3. Tax credit also applies to battery retrofits

The IRS recently clarified that the 26% federal Solar Investment Tax Credit also extends to battery systems added as retrofits to existing residential solar installations. So as long as your battery is 100% filled by solar energy, of course, and is fully operational and commissioned, you're eligible for the tax credit. Leases do not qualify.


4. Grandfathering remains intact in SRP and APS

While rules differ slightly between utilities, in the vast majority of cases, simply adding a battery to an existing solar installation will not impact solar grandfathering as long as the solar configuration itself is not altered. It’s best to consult a certified installer for details in your area.


A certified battery installer will be able to analyze your home and energy usage to determine if a battery makes sense for you. With incentives available only for a limited time, now is a good time to reach out for a custom quote. 

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