The Information · California · Ars Technica
US home battery installations hit record high on rising electricity costs
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US homeowners have embraced home batteries in record-breaking numbers in early 2026, spurred on by state incentives while seeking to offset rising residential electricity costs.
Key facts
- The Energy Information Administration’s latest data shows that the nationwide average for residential electricity costs increased by more than 7 percent in April 2026 when compared to electricity
- New home battery installations reached a record 673 megawatts of energy storage in the first quarter of 2026, according to the US Energy Information Administration
- The amount of US home battery capacity incorporated by virtual power plants soared by 153 percent in 2025, according to Yale E360
- US homeowners have embraced home batteries in record-breaking numbers in early 2026, spurred on by state incentives while seeking to offset rising residential electricity costs
Summary
New home battery installations reached a record 673 megawatts of energy storage in the first quarter of 2026, according to the US Energy Information Administration. This residential battery trend stands out as a natural next step for states that have already successfully boosted rooftop solar adoption among homeowners, given how batteries enable homeowners to use stored solar energy at night. California incentivizes homeowners with solar panels to also install batteries by offering better pricing for residential electricity exported to the grid after sunset, Bloomberg reported. However, the record-breaking home battery installations coincided with a slowdown in residential installations of solar panels—the result of the Trump administration and Republican-driven One Big Beautiful Bill having eliminated a 30 percent federal solar tax credit for homeowners.