Home Battery Payback Calculator
Estimate your savings and ROI from residential energy storage
Battery System
Incentives & Rates
The Investment Tax Credit (ITC) provides 30% tax credit when battery storage is installed with solar.
Electricity Rates
Used to estimate self-consumption savings from stored solar energy.
System Overview
Total Capacity
13.5 kWh
Usable storage
Total System Cost
$12,000
Before incentives
Federal Tax Credit
$0
30% ITC if paired with solar
Net Cost
$12,000
After tax credit
Annual Savings
$360
Year 1
Payback Period
33.3
years
Savings Breakdown
Monthly Savings
$30.00
10-Year Net Benefit
-$8,400
Backup Power Duration
9 hrs
Frequently Asked Questions
How does battery storage save money?
Home batteries store excess solar energy for use during peak-rate hours or evening. They maximize self-consumption of solar generation and can shift usage to off-peak periods on time-of-use (TOU) plans, reducing overall electricity costs.
What is the 30% federal tax credit?
The Investment Tax Credit (ITC) allows you to claim 30% of battery storage installation costs as a credit on your federal income taxes, but only if the battery is paired with a solar system and installed together. This significantly reduces your net cost.
What affects payback period?
Payback period depends on your electricity rates, daily usage patterns, whether you have TOU rates, and if the system is paired with solar. Higher rates, TOU pricing, and solar integration all improve payback. Backup power capability adds intangible value for resilience.
How long does a home battery last?
Most modern home batteries (LG, Tesla, Generac) come with 10-year warranties and are designed to retain 70-80% capacity after 10-15 years. The calculator's 10-year projection helps you evaluate ROI before typical replacement.