Federal Investment Tax Credit (ITC)
Powerwall is designed to qualify for the Federal Investment Tax Credit (ITC) when it is installed on an existing or new solar system and is charged 100% with solar energy. It does not qualify when installed without solar or if solar is installed after Powerwall. You should always consult your tax professional for your situation.
State and Local Energy Incentives
Learn more about state, local and utility-specific incentives here.
California Self-Generation Incentive Program
To encourage more residential storage deployments in California, the California Public Utilities Commission (CPUC) established the Self-Generation Incentive Program (SGIP).
The program provides incentives to help reduce the costs of storage to consumers. Residential storage batteries, like Powerwall, reduce strain on the grid and in turn help reduce the need to build expensive fossil fuel-fired power plants. Learn more about the California Self-Generation Incentive Program.
Tesla and Tesla Certified Installers have an allocation of the SGIP budget. This allocation is called a developer cap, and each developer can only reserve 20% of each step's budget.
Tesla’s backlog of orders is currently more than our expected developer cap in remaining program steps but some Tesla Certified Installers still have allocations for SGIP. The table below shows the estimated incentive value for Powerwall.
Approximate incentive per Powerwall (up to 2) by step (updated August 2019).
|Stage||Estimated Rebate Value||Status|
|Step 1||$5,800||Fully subscribed|
|Step 2||$4,640||Fully subscribed|
|Step 3||$4,060||Tesla has reached its cap for this step. Tesla Certified Installers have availability|
|Step 4||$3,480||Opens after Step 3 is fully subscribed. Fully backlogged by Tesla, still available to Tesla Certified Installers|
|Step 5||$2,900||Opens after Step 4 is fully subscribed. Fully backlogged by Tesla, still available to Tesla Certified Installers|
SGIP Application Process
- Once you have confirmed an order for Powerwall, Tesla or your Certified Installer must file SGIP initial paperwork to reserve a portion of funding. Availability of funding is based on the current step and volume of applications.
- Tesla or your Certified Installer will install, commission and gain utility approval for Powerwall.
- Tesla or your Certified Installer will submit the final paperwork to SGIP administrators. An SGIP administrator will inspect your system to confirm it is operating properly.
- You will receive your cash rebate.
The SGIP program does not allow Tesla to support customers to apply as their own developer. Tesla provides SGIP support at no additional fee for customers with a Powerwall system installed by Tesla or Tesla Certified Installers. However, Tesla is not able to provide certain necessary SGIP documents or reports to a non-Certified Installer.
Unfortunately, we cannot guarantee that a project will receive the SGIP rebate. Due to the popularity of the SGIP program, we prioritize customer submittals based on the date of Powerwall purchase.
Residential SGIP Installations
SGIP has reserved funds specifically for small-scale residential installations. To be considered residential, the storage system must be no larger than 10 kW.
Tesla will only be submitting customers in the residential budget, therefore only systems of up to 2 Powerwalls will be submitted through Tesla. Other developers may choose to submit applications for systems with 3 or more Powerwalls, but these systems will be subject to additional sizing requirements.
SGIP Program Requirements
The goal of the SGIP program is to reduce load on the grid and reduce greenhouse gas usage. In order to participate in the program, SGIP requires you to use Powerwall to help the program meet this goal. Powerwall must meet a ‘cycling’ requirement where Powerwall will need to fully charge and discharge at least 52 times, or 687 kWh, per year.
Tesla has designed Powerwall to comply with these requirements with little impact to customers.
Annual Usage Requirement
In either of these modes, Powerwall will cycle, or charge and discharge, daily. You can still set a backup reserve to ensure you have energy stored in case of a utility outage – we recommend a reserve of no more than 30%.
If you know bad weather is coming, you can choose Backup-Only, which will automatically reserve 100% of Powerwall’s capacity for backup power. After the storm or outage is over, remember to select Self-Powered or Time-Based Control to continue cycling the battery.
Tracking the Annual Usage Requirement
To ensure you are tracking towards the 687 kWh goal, simply return to the Tesla app home screen, select Power Flow, and click on the Powerwall icon. From here you can choose a time period to track your usage.
On average, you will want to use 57 kWh/month. We anticipate all our customers will meet this minimum requirement provided they follow the recommendations above regarding Backup-Only and the backup reserve.
If your system is not on track to meeting the annual usage the SGIP program requires, certain settings of your system may be restricted; for example, limiting the share of the system’s capacity you can reserve for backup. This may occur 8 months into the year and on the anniversary of that date for the next four years of the program. This would be a temporary restriction, with full functionality restored once you have met the program’s cycling requirements.
Powerwall for Backup and SGIP
SGIP prohibits energy storage systems from being used solely for backup purposes. The system must “cycle” (charge and discharge on a regular basis) to meet some of your onsite electrical needs.
You can adjust the backup reserve or use Backup-Only for times when you are concerned about the power (for example during storms), but for day-to-day operation, you will need to use Self-Powered or Time-Based Control to meet the SGIP requirements.
SGIP and ITC
If Powerwall is installed at the same time or retrofitted onto existing solar panels, Powerwall is eligible for the 30% Federal ITC. You can receive both the California SGIP incentive and the Federal ITC for your Powerwall if you meet both program requirements.