Federal Investment Tax Credit
The following federal income tax credits are available to anyone who purchases Powerwalls, solar panels and Solar Roof. As of 2023, Powerwall, with or without solar, qualifies for the Investment Tax Credit. You should always consult your tax professional for your specific situation.
|Solar + Powerwall Residential Federal Investment Tax Credit
|Standalone Powerwall Residential Federal Investment Tax Credit
|For Systems Receiving Permission to Operate in
State and Local Energy Incentives
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.
SGIP allocation is divided by developer and allocation is capped at 20% of each step's budget. Some Tesla Certified Installers still have allocations for SGIP.
Note: Once a program administrator allocates 50% of the available budget, the remaining budget in the step will be reserved and allocated to residential customers whose electricity has been turned off during two or more discrete Public Safety Power Shutoff (PSPS) events or are located in a High Fire Threat District (HFTD) - currently in effect. Learn if you are located in a HFTD.
The table below shows the estimated incentive value for Powerwall. Approximate incentive is per Powerwall by step (updated February 2024).
Small Scale Residential
|Estimated Rebate Value
|Fully subscribed for PG&E and SDG&E; SCE and SCG open
|PG&E, SCG and SDG&E open
Large Scale Residential
|Estimated Rebate Value
|SCE and SCG open
Equity Resiliency (additional requirements apply)
|Estimated Rebate Value
|Typically covers most of the cost for project
|SCE, SCG and PG&E open
SGIP Application Process
- Once you have confirmed an order for Powerwall, 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.
- Your Certified Installer will install, commission and gain utility approval for Powerwall.
- 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 upon final application approval.
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.
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, download the Tesla app to monitor your energy data. 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 Federal Investment Tax Credit
You can receive both the California SGIP incentive and the Federal Investment Tax Credit (ITC) for your Powerwall if you meet both program requirements.