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Two state incentive programs dominate the home battery landscape in 2026: California's SGIP (Self-Generation Incentive Program) and Massachusetts' ConnectedSolutions. Both can knock thousands of dollars off the cost of a home battery, but they take fundamentally different approaches. Here's which pays more for your situation.
How SGIP works (California)
SGIP is a capacity-based upfront rebate. You get paid per watt-hour of installed battery capacity:
- General tier: $0.15–$0.35/Wh
- Equity tier (high-fire-risk or low-income zip codes): up to $1.00/Wh
For a Tesla Powerwall 3 (13,500 Wh): general tier pays $2,025–$4,725; equity tier pays up to $13,500. The rebate is paid as a check after installation.
How ConnectedSolutions works (Massachusetts and 5 other states)
ConnectedSolutions is a performance-based program. You commit to dispatching your battery during grid peak events (typically 30–60 hours per year), and the utility pays you per kW of dispatchable capacity:
- Massachusetts: ~$1,500/year for 5 years = $7,500 total
- Rhode Island, Connecticut, New Hampshire, Maine, Vermont: similar structures
Which pays more?
For a Tesla Powerwall 3 in California's general tier: $2,025–$4,725 upfront. In Massachusetts: $7,500 over 5 years. ConnectedSolutions pays more — but it's spread over 5 years and requires you to commit your battery to grid dispatch during peak events (which means you can't always use it for home backup during those events).
In California's equity tier, SGIP wins decisively: up to $13,500 upfront, no ongoing commitments. This is the most generous battery incentive in the country.
See our state rebate guide for the full list of programs and how to apply.
Posted in Incentives