DAWN THOMAS | DRE# 01460529
Silicon Valley and Beyond
  • SVAB
    • Silicon Valley Luxury Real Estate
    • Beyond
  • WORK WITH US
    • Selling Your Home With Confidence (Seller Process)
    • Buying Your Home With Confidence (Buyer Process)
  • FEATURED PROPERTIES
    • Featured Properties
    • Bought and Sold Properties
    • Global Real Estate
  • COMMUNITIES
    • Campbell
    • Cupertino
    • Los Altos
    • Los Altos Hills
    • Los Gatos
    • Menlo Park
    • Monte Sereno
    • Mountain View
    • Palo Alto
    • San Jose
    • Santa Clara
    • Saratoga
    • Sunnyvale
  • IMMERSE
    • Blogs
    • SVRE – Market Update Report
    • SVAB In The News
  • ABOUT
    • Meet Dawn Thomas
    • Meet The Team
    • Mission, Vision, & Core Values
    • Contact Us
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Whole-Home Battery Backup Systems

January 29, 2021/in Current Events, Smart Home Trends/by Dawn Thomas

California has embraced moving toward renewable and clean energy sources and, as discussed in a previous article on Reach codes, this means all new homes are required to have solar panels. Many cities in Silicon Valley and beyond are also requiring homes to be all-electric.

But, with blackouts also more of a reality, especially during high wind events, severe winter storms, and wildfire season, all too many homeowners find themselves without power, sometimes for days on end.

Homes powered by solar panels also lose power during an outage unless they have a whole-house battery backup system. Battery backup systems also reduce electricity costs, providing power during the evening hours when a home would typically access electricity from PG&E. The stored electricity can help support the local utility company by providing power during peak periods or when needed.

Whole-home battery backup systems, such as Tesla’s Powerwall, provide electricity during evening hours to power even those most high-tech homes. During a blackout, backup battery storage systems will continue to contribute energy to essential needs, including refrigeration, lighting, communication, and entertainment devices.

It is important to note that these storage systems are not designed to fully power a home and all of its major systems, like central AC and EV chargers, during an extended power outage. Energy-hungry appliances quickly consume any remaining power, which is why adequately designed storage units target electricity to critical residential systems. And they can do so (almost) indefinitely if three criteria are met.

  1. Align the battery’s kilowatt-hour capacity and its output with your home’s energy requirements at night when the battery is partially charged
  2. Limit the number of circuits to prevent powering too many small devices or any large home systems
  3. The size of the installed solar panel system must be sufficient to partial recharge the battery on overcast winter days

Most battery backup systems will automatically shed extra energy demands during a blackout but if you’re considering a whole-home backup, ask upfront about these criteria.

California is leading the country in solar energy capacity, with six times more than runner-up Arizona. By the end of 2019, over 10,000 homes and businesses in California were equipped with solar and backup battery systems.

Over time, the costs will decline, and more and more homeowners will harness extra energy from their solar panels.

The federal government offers a solar tax credit, called the investment tax credit or ITC was established by the Energy Policy Act of 2005. This Act was due to expire in 2007 but has been extended multiple times and is available through 2021.

From 2020 through 2022, owners of residential (and commercial) solar can deduct 26% of the cost from their taxes. In 2023, that amount drops to 22%, and in 2024, it declines again to 10%.

To take the tax credit, you must own, not lease, your solar energy system. If your tax liability doesn’t enable you to claim the entire amount, the credit can be rolled to future years as long as the ITC remains in effect.

In many cases, this credit can also be applied to whole-home battery backups as well as solar panels. To qualify for the ITC, the battery must be charged onsite by renewable energy, not from the electrical grid.

Though the ITC guidelines assume battery storage and solar panels are installed congruously, the National Renewable Energy Laboratory (NREL) has stated that a storage system added to an existing solar panel system should qualify for the tax credit. Again, the homeowner must own the solar panels.

The California Public Utilities Commission also has a Self-Generation Incentive Program (SGIP), which provides rebates on qualifying energy technology, including energy storage systems. The program currently runs through 2025 and offers a generous incentive for installing battery storage systems.

If you qualify for the ITC and the SGIP incentive, your cost savings for installing a whole-home battery backup system add up to about 50%. As always, we recommend consulting your CPA or financial advisor determine if these incentives apply.

EnergySage has some in-depth and informative articles about both the ITC and the SGIP programs. They also offer advice on comparing backup systems.

With incentives, tax credits, and reduced or eliminated reliance on local utilities, the transition to clean, safe, and effective renewable energy for homeowners is becoming even more economical.

The Dawn Thomas Team guides nice people through Silicon Valley and Santa Cruz County real estate matters. Our mission is to help everyone find their place in this world. Contact us today, and we can assist you in selling or buying your home.

Tags: all-electric homes, energy tax incentives, power outages, renewable energy, solar energy, solar panel systems, solar panels, solar tax credit, Tesla Powerwall, whole-home batter backup systems
Share this entry
  • Share on Facebook
  • Share on X
  • Share on WhatsApp
  • Share on Pinterest
  • Share on LinkedIn
  • Share on Tumblr
  • Share on Vk
  • Share on Reddit
  • Share by Mail
https://siliconvalleyandbeyond.com/wp-content/uploads/los-altos-hills_guesthouse_blog.jpg 681 1029 Dawn Thomas https://siliconvalleyandbeyond.com/wp-content/uploads/2026/08/Dawns-New-Logo-Horizontal-Black-scaled.png Dawn Thomas2021-01-29 11:21:592021-11-24 11:24:30Whole-Home Battery Backup Systems
You might also like
How Reach Codes Impact Residential Homeowners
Are You Ready for California Wildfire Season?
Solar Panels To Purchase or Lease Solar Panels: Which Option is Best?
15 Features to Help Sell Your Home Quickly and Effectively
15 Features to Help Sell Your Home Quickly
The Latest Pollution Push: Gas-Powered Garden Equipment

Brought to you by:

Dawn Thomas

Dawn Thomas


BROKER ASSOCIATE

Dawn Thomas is a Silicon Valley real estate expert serving Santa Clara, Los Gatos, Los Altos, Palo Alto, and surrounding communities. With advanced negotiation training from Harvard Law School and mediation certification from the San Francisco Bar Association, she represents buyers and sellers with strategic precision and white-glove service.

From exclusive off-market opportunities to maximizing seller value, Dawn helps clients navigate competitive markets with clarity, confidence, and proven results.


SAY HELLO

  • PRIVACY POLICY
  • ACCESSIBILITY STATEMENT
  • TERMS OF USE

Dawn Thomas Team Newsletter

Subscribe to receive the latest real estate market updates, luxury trends, curated listings, local lifestyle, and more!

LOCATION

OFFICE

2200 UNION STREET

SAN FRANCISCO, CA 94123

DAWN THOMAS TEAM

DAWN@SILICONVALLEYANDBEYOND.COM

(650) 701-7822 | OFFICE

(650) 215-5990 | DAWN

Facebook Facebook Instagram Instagram Linkedin Linkedin Youtube-play Youtube-play
The Villa Logo

SILICON VALLEY AND BEYOND™ (AND ALL VARIATIONS) IS A TRADEMARK OF DAWN THOMAS TEAM, INC. | DRE# 01460529
ALL CONTENT ON THIS SITE IS SUBJECT TO COPYRIGHT © 2004-2026 FOR DAWN THOMAS TEAM, INC. ALL RIGHTS RESERVED.
All material presented herein is intended for informational purposes only and is compiled from sources deemed reliable but has not been verified. Changes in price, condition, sale or withdrawal may be made without notice. No statement is made as to accuracy of any description. All measurements and square footage are approximate. If your property is currently listed for sale this is not a solicitation.

Link to: Arm Yourself Against Spam and Robocalls Link to: Arm Yourself Against Spam and Robocalls Arm Yourself Against Spam and RobocallsArm Yourself Against Spam and RobocallsLink to: Design a Functional & Motivating Home Gym Link to: Design a Functional & Motivating Home Gym Home GymDesign a Functional & Motivating Home Gym
Scroll to top