Energy Incentives
Federal Investment Tax Credit
The federal income tax credit for those who purchase Powerwall may continue to change. You should always consult your tax professional for your specific situation.
State, Local and Utility Energy Incentives
- Arizona
- California
- Colorado
- Connecticut
- Florida
- Hawaii
- Idaho
- Illinois
- Maryland
- Massachusetts
- New Jersey
- New York
- North Carolina
- Pennsylvania
- Rhode Island
- South Carolina
- Texas
- Wisconsin
- District of Columbia
- Puerto Rico
Arizona
State Incentives
The State of Arizona offers the Solar Energy Credit incentive for a tax credit of up to 25% of the installation costs of solar panels up to $1,000. Homeowners are responsible for submitting the application for this tax credit.
Local and Utility Incentives
Tucson Electric Power customers can earn up to $800 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by TEP Energy Storage Rewards. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning bill credits in return.
California
State Incentives
California Powerwall customers may be eligible for the Self-Generation Incentive Program (SGIP).
Local and Utility Incentives
Anaheim Public Utilities offers the Battery Storage Program for a rebate of up to $3,000 for the installation of Powerwall. Homeowners are responsible for submitting the application for this rebate.
Central Coast Community Energy offers the Residential Battery Rebate for a rebate of up to $7,800 for the installation of Powerwall. Participants must program the home backup battery to discharge during peak hours. Homeowners are responsible for submitting the application for this rebate.
PG&E offers the Permanent Battery Storage Rebate Program for a rebate of up to $7,500 for the installation of Powerwall. Homeowners are responsible for submitting the application for this rebate.
PG&E, SCE and SDG&E customers can earn up to $60/kW off the cash or financing price of a Tesla solar system by giving Tesla ownership of the Solar Renewable Energy Credits (SRECs) your system generates. This discount provides you with the future value of your SREC sales immediately, while Tesla takes full responsibility for tracking, managing and selling the SRECs over time. Tesla oversees all required steps, including registration, compliance and SREC transactions, while managing risks such as fluctuations in energy production and shifts in state or program regulations.
SMUD offers the My Energy Optimizer Partner+ for a rebate of up to $10,000 for the installation of Powerwall. Homeowners must enroll in the Tesla Virtual Power Plant using the Tesla app after system activation to apply for this rebate.
The Clean Power Alliance offers the Sun Storage Rebate Program for a rebate of up to $750 for the installation of Powerwall. Homeowners are responsible for submitting the application for this rebate.
PG&E, SDG&E, SCE and LADWP customers can earn up to $350 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant with DSGS. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
SMUD customers can earn up to $440 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by SMUD My Energy Optimizer® Partner+. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
Colorado
Local and Utility Incentives
The City of Centennial's Building Department offers the Home Improvement Program for a rebate of up to $300 for the installation of solar panels. Homeowners are responsible for submitting the application for this rebate.
Fort Collins Utilities offers the Residential Solar Rebate Program for a rebate of up to $1,000 for the installation of solar panels. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
Fort Collins Utilities offers the Residential Battery Storage Program for a rebate of up to $3,000 for the installation of Powerwall when paired with solar panels. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
Xcel Energy offers the Renewable Battery Connect Program for a rebate of up to $5,000 for the installation of Powerwall when paired with an eligible solar system. Participants must enroll in the Tesla Virtual Power Plant with Xcel Energy’s Renewable Battery Connect Program to qualify. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
Xcel Energy customers can earn up to $100 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by Xcel Energy’s Renewable Battery Connect Program. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning bill credits in return.
Connecticut
Local and Utility Incentives
Connecticut Green Bank offers the Energy Storage Solutions Program for a rebate of up to $250/kWh for the installation of Powerwall. Participants must enroll in the Tesla Virtual Power Plant with Connecticut Energy Storage Solutions to qualify. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
Eversource (CL&P) customers can earn up to $648 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by Connecticut Energy Storage Solutions. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
Florida
Local and Utility Incentives
SECO customers can earn up to $275 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by SECO Energy's Smart Connect. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
Hawaii
State Incentives
The State of Hawaii offers the Renewable Energy Credit incentive for a tax credit of up to 35% of system installation costs of solar panels. Homeowners are responsible for submitting the application for this tax credit.
Idaho
State Incentives
The State of Idaho offers the Residential Alternative Energy Tax Deduction incentive for a tax deduction of up to 40% of system installation costs of solar panels. This can be applied in the year that the energy system is installed. An additional 20% can be deducted in each of the following three years. The maximum deduction in any one year is $5,000. The total maximum deduction is $20,000. Homeowners are responsible for submitting the application for this tax deduction.
Illinois
State Incentives
Illinois customers can earn up to $870/kW off the cash or financing price of a Tesla solar system by giving Tesla ownership of the Solar Renewable Energy Credits (SRECs) your system generates. This discount provides you with the future value of your SREC sales immediately, while Tesla takes full responsibility for tracking, managing and selling the SRECs over time. Tesla oversees all required steps, including registration, compliance and SREC transactions, while managing risks such as fluctuations in energy production and shifts in state or program regulations.
Local and Utility Incentives
ComEd offers the Distributed Generation Program for a rebate of up to $300/kW-DC for the installation of solar panels when paired with eligible home backup battery. Homeowners are responsible for submitting the application for this rebate.
ComEd offers the Distributed Generation Program for a rebate of up to $300/kWh for the installation of a home backup battery. Earn up to $4,050 per Powerwall when paired with an eligible solar system. Homeowners are responsible for submitting the application for this rebate.
Maryland
State Incentives
Maryland customers can earn up to $185/kW off the cash or financing price of a Tesla solar system by giving Tesla ownership of the Solar Renewable Energy Credits (SRECs) your system generates. This discount provides you with the future value of your SREC sales immediately, while Tesla takes full responsibility for tracking, managing and selling the SRECs over time. Tesla oversees all required steps, including registration, compliance and SREC transactions, while managing risks such as fluctuations in energy production and shifts in state or program regulations.
Local and Utility Incentives
The Maryland Energy Administration offers the Maryland Solar Access Program for a rebate of up to $7,500 for the installation of solar panels. Eligibility for the Maryland Solar Access incentive is limited to customers who meet state-defined income and program requirements. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
Massachusetts
State Incentives
The State of Massachusetts offers the Residential Energy Tax Credit incentive for a tax credit of up to 15% of system installation costs of solar panels up to $1,000. Homeowners are responsible for submitting the application for this tax credit.
Local and Utility Incentives
National Grid, Eversource and Cape Light Compact customers can earn up to $700 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant with ConnectedSolutions Program. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
New Jersey
State Incentives
New Jersey customers can earn up to $660/kW off the cash or financing price of a Tesla solar system by giving Tesla ownership of the Solar Renewable Energy Credits (SRECs) your system generates. This discount provides you with the future value of your SREC sales immediately, while Tesla takes full responsibility for tracking, managing and selling the SRECs over time. Tesla oversees all required steps, including registration, compliance and SREC transactions, while managing risks such as fluctuations in energy production and shifts in state or program regulations.
New York
Local and Utility Incentives
NYSERDA offers the NY-Sun Solar Incentive for a rebate of up to $150/kW for the installation of solar panels up to $5,000 per solar system. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
PSEG Long Island with NYSERDA offers the Battery Storage Rewards Program for a rebate of up to $6,250 for the installation of Powerwall. Participants must enroll in the Tesla Virtual Power Plant with PSEG Long Island Battery Storage Rewards Program to qualify. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
PSEG Long Island customers can earn up to $158 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by PSEG Long Island Battery Storage Rewards Program. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
North Carolina
Local and Utility Incentives
Duke Energy offers the PowerPair Program for a rebate of up to $9,000 for the installation of solar panels and Powerwall. Tesla will submit the rebate application on behalf of eligible customers who purchase through Tesla.
Duke Energy customers can earn up to $624 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by Duke Energy Battery Program. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning bill credits in return.
Pennsylvania
State Incentives
Pennsylvania customers can earn up to $90/kW off the cash or financing price of a Tesla solar system by giving Tesla ownership of the Solar Renewable Energy Credits (SRECs) your system generates. This discount provides you with the future value of your SREC sales immediately, while Tesla takes full responsibility for tracking, managing and selling the SRECs over time. Tesla oversees all required steps, including registration, compliance and SREC transactions, while managing risks such as fluctuations in energy production and shifts in state or program regulations.
Local and Utility Incentives
PECO offers the Residential Solar Program for a rebate of up to $500 for the installation of solar panels. Homeowners are responsible for submitting the application for this rebate.
Rhode Island
Local and Utility Incentives
Rhode Island Energy customers can earn up to $1,000 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant with ConnectedSolutions Program. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
South Carolina
State Incentives
The State of South Carolina offers the Solar Energy Credit incentive for a tax credit of up to 25% of installation costs of solar panels. The tax credit is limited to $3,500 each tax year for up to 10 years. Homeowners are responsible for submitting the application for this tax credit.
Texas
Local and Utility Incentives
GVEC offers the Peak-Time Payback Program for a rebate of up to $2,530 for the installation of Powerwall. Homeowners must enroll in the Tesla Virtual Power Plant using the Tesla app after system activation to apply for this rebate.
GVEC customers can earn up to $863 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant Powered by GVEC Peak-Time Payback. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning bill credits in return.
Tesla Electric customers can earn up to $400 per home backup battery each year by enrolling Powerwall in Tesla Electric Virtual Power Plant Pilot with ERCOT. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning bill credits in return.
Wisconsin
Local and Utility Incentives
Focus on Energy in partnership with Wisconsin Utilities offers the Residential Customer Solar PV Rebate Program for a rebate of up to $300 for the installation of solar panels. An additional $300 is available to customers in qualifying rural zip codes. Homeowners are responsible for submitting the application for this rebate.
District of Columbia
Local and Utility Incentives
District of Columbia customers can earn up to $1,020/kW off the cash or financing price of a Tesla solar system by giving Tesla ownership of the Solar Renewable Energy Credits (SRECs) your system generates. This discount provides you with the future value of your SREC sales immediately, while Tesla takes full responsibility for tracking, managing and selling the SRECs over time. Tesla oversees all required steps, including registration, compliance and SREC transactions, while managing risks such as fluctuations in energy production and shifts in state or program regulations.
Puerto Rico
Local and Utility Incentives
LUMA Energy customers can earn up to $1,000 per home backup battery each year by enrolling Powerwall in Tesla Virtual Power Plant in Puerto Rico. Enrolled Powerwalls support the grid during high-demand times by exporting energy or reducing load, earning payment in return.
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 Budget
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).
Equity Resiliency (additional requirements apply)
Small Scale Residential
| Utility | Current Step | Rebate Value | Status |
|---|---|---|---|
| Southern California Edison | 7 | Up to $150/kWh | Open |
| Southern California Gas | 7 | Up to $150/kWh | Open |
| Pacific Gas and Electric | 7 | Up to $150/kWh | Open |
| San Diego Gas and Electric | 7 | Up to $150/kWh | Waitlist |
Equity Resiliency
| Utility | Current Step | Rebate Value | Status |
|---|---|---|---|
| Southern California Edison | 5 | Typically covers most of the cost for project | Open |
| Southern California Gas | 5 | Typically covers most of the cost for project | Open |
| Pacific Gas and Electric | 5 | Typically covers most of the cost for project | Open |
| San Diego Gas and Electric | 5 | Typically covers most of the cost for project | Waitlist |
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.
SGIP Prioritization
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
To meet the annual usage requirement, you will want to make sure Powerwall is set to Self-Powered or Time-Based Control.
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.
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