Study Finds Solar Plus Battery Storage Could Lower Power Bills for Most U.S. Homes — But Timing Matters

Key Insights

• Solar and battery storage systems could cut electricity bills for about 60% of American households.
• Around 63% of homes could keep half of their essential power running during outages without raising overall energy costs.
• Declining battery storage costs, renewable energy tax credits, and utility payment structures drive system affordability.

A new national analysis has revealed that combining rooftop solar with battery storage can significantly reduce energy bills while providing essential backup power during increasingly frequent grid outages. These findings highlight how distributed energy systems are becoming an important part of the modern energy mix.

According to the research, roughly six in ten U.S. families could lower their electricity expenses by an average of 15% by installing solar-plus-battery storage systems, even when including installation and operating costs.

Battery Storage Adds Value Beyond Solar Alone

The study highlights how batteries transform the economics of renewable energy systems. Roughly 63% of households could keep half of their daily electricity needs powered during blackouts without increasing overall costs. This dual benefit — cost reduction and resilience — underscores the growing role of battery storage in distributed energy planning.

As electricity prices climb and extreme weather events place pressure on aging power grids, having on-site renewable energy and battery storage is no longer just an environmental decision — it’s becoming a practical necessity for reliable power and cost control.

Tax Incentives Expiring Soon Could Change the Economics

A recently passed federal bill will gradually phase out key renewable energy tax credits that have helped make solar and battery storage systems more affordable. Currently, homeowners can offset 30% of installation costs — often saving around $12,000 on a typical $40,000 system.

Once these credits expire, the percentage of homes for which solar-battery storage remains economically attractive is expected to fall from 60% to about 32%. Yet falling battery costs are projected to restore and even expand that figure by the early 2030s.

In the meantime, leasing programs and power purchase agreements will provide indirect financial benefits for a limited time, allowing more families to adopt distributed energy solutions.

Utility Rate Changes Make Storing Energy More Valuable

As utilities reduce compensation for excess renewable energy sent back to the grid, storing power for personal use is becoming the smarter choice. Battery storage allows households to shift energy use to times when electricity is most expensive, reducing costs and strengthening grid reliability.

This market shift transforms the role of batteries from optional add-ons to essential components of efficient renewable energy systems.

Regional Differences Affect Backup Power Potential

The benefits of solar-plus-battery systems vary by location. Ironically, some regions with the highest outage risks see fewer cost-effective backup solutions, while areas with fewer disruptions often have better financial returns.

This uneven distribution highlights the need for targeted policy support, flexible financing tools, and community-based deployment strategies to bring reliable renewable energy to areas with the greatest need.

Falling Battery Costs Will Accelerate Adoption

The price of battery technology remains a key factor in driving widespread use of distributed energy systems. While some rural and economically disadvantaged regions still face cost challenges, ongoing price declines are expected to expand access significantly in the coming years.

Looking ahead, emerging technologies — such as mobile battery storage for neighborhood-level backup — could further enhance resilience, affordability, and sustainability.

Aligning Policy, Technology, and Market Forces

As battery storage becomes more affordable, renewable energy markets evolve, and distributed energy systems grow in scale, the way U.S. households generate and use electricity is changing. Strategic policy design, innovative financing, and reliable technology deployment will be crucial to unlocking the next wave of renewable energy adoption.

For millions of households, the window to act is open now. Those who move quickly may secure long-term cost savings, backup power resilience, and a stronger role in shaping a cleaner, more reliable energy future.