For years, the federal 30% Investment Tax Credit (ITC) helped make solar and battery storage more accessible for homeowners. As the incentive landscape changes and eligibility becomes more complex, many people are asking the same question: “Is solar and energy storage still worth it without the full federal tax credit?
The answer is yes. But, the way homeowners see value has shifted. Instead of relying on a single federal incentive, today’s systems deliver returns through local programs, utility savings, and grid-connected revenue opportunities that continue year after year.
The Shift From Federal Credits to Local Incentives
While federal incentives may no longer be the primary driver, state and utility-level programs are playing a bigger role than ever. These programs are designed to address regional grid challenges, peak demand, and energy reliability. Not to mention, they reward homeowners who participate. Here are a few common types of incentives homeowners may see, depending on location:
1. Utility Battery Rebates
Many utilities offer upfront rebates for installing a qualifying battery system. These rebates can range from a few thousand dollars to significantly more, depending on system size and program availability.
2. Performance-Based Incentives
In some regions, incentives are tied to how your system performs over time, not just that it’s installed. Homeowners may receive payments based on:
- Energy discharged during peak events
- Availability during grid stress periods
- Participation in demand response programs
3. State-Level Programs
Certain states offer well-established storage incentives. For example:
- California has historically supported battery adoption through programs focused on grid reliability and wildfire resilience.
- Northeastern states often provide incentives aimed at reducing peak demand during winter and summer extremes.
- Mid-Atlantic and Midwest utilities are increasingly launching pilot programs to support distributed energy resources as grids modernize.
Because these programs vary widely, working with a system that’s utility-compatible and flexible is critical.
Monthly Utility Bill Savings Still Drive Real ROI
Even without a federal tax credit, energy storage provides immediate, ongoing savings through smarter energy use.
By storing solar energy or low-cost off-peak electricity and using it when rates are highest, homeowners can:
- Avoid peak time-of-use charges
- Reduce reliance on the grid during expensive hours
- Lower overall monthly electricity bills
In high-rate markets, these savings alone can add up to thousands of dollars over the life of a system.
Virtual Power Plants: A New Revenue Stream for Homeowners
One of the biggest developments in the energy space is the growth of Virtual Power Plants (VPPs). These are programs that allow homeowner batteries to support the grid during peak demand.
Instead of being used only for backup power, batteries can now generate ongoing income. By storing solar energy or low-cost off-peak electricity and using it when rates are highest, homeowners can:
- Avoid peak time-of-use charges
- Reduce reliance on the grid during expensive hours
- Lower overall monthly electricity bills
In high-rate markets, these savings alone can add up to thousands of dollars over the life of a system.
How Fortress Power EnergyBroker Program Fits In
Many utilities offer upfront rebates for installing a qualifying battery system. These rebates can range from a few thousand dollars to significantly more, depending on system size and program availability,
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The EnergyBroker program from Fortress Power helps homeowners turn their solar and storage systems into revenue-generating assets by connecting them with participating utilities. EnergyBroker works behind the scenes to optimize when stored energy is used, ensuring homeowners receive the most value from local incentive programs. Key benefits include:
- Recurring Revenue
Homeowners earn upfront and performance-based incentives by allowing their batteries to participate in grid services. - Seamless Integration
EnergyBroker works directly with Fortress Power systems and Guardian monitoring — no additional hardware required. - Utility Partnerships
Active across multiple states, including both pilot programs and long-term utility contracts. - Grid Support & Resilience
Participation helps reduce peak demand, stabilize local infrastructure, and support a more resilient energy grid.
In many regions, VPP participation is becoming one of the most valuable incentives available and replacing what homeowners once expected from federal tax credits.
The New Solar + Storage Value Stack
Today’s strongest solar and battery systems deliver value from multiple angles:
- Local and utility incentives
- Monthly bill savings
- Backup power and outage protection
- VPP and grid services revenue
- Long-term insulation from rising electricity costs
Instead of relying on a single incentive, homeowners benefit from stacked, long-term returns that continue well beyond installation. As incentives shift toward performance and grid participation, systems that can adapt and actively work for homeowners, are becoming more valuable.
The question is no longer “Is there a tax credit?”, but “How many ways can my energy system deliver value over time?”
Learn more about how Fortress Power solutions can help you maximize returns beyond the federal tax credit. Get started today.
