Home Battery Buyers Taking Advantage of Expiring Clean Energy Tax Credit
As extreme weather events like heat waves, hurricanes, wildfires, and floods become more frequent and intense, more and more homeowners across the US are installing home battery backup systems with or without solar panels to increase energy security and limit reliance on the utility grid.
The 30% federal income tax credit on home battery systems with at least three kilowatt-hours of storage has undoubtedly fueled the unprecedented demand for home backup batteries, which can save homeowners thousands of dollars on purchase and installation costs.*
However, the tax landscape for renewables and rechargeable applications like home batteries and electric vehicles has changed.
Time is running out much faster than anticipated to take advantage of income tax credits for clean energy property, but it’s not too late.
Yet.
Understanding the Clean Energy Tax Credit Landscape
The One Big Beautiful Bill (2025) eliminates critical clean energy incentives laid out by the Inflation Reduction Act (2022) at the utility, consumer, and residential level.
The Inflation Reduction Act (IRA) contained numerous clean energy tax credits and incentives to encourage industry, consumers, and homeowners to reduce US dependence on burning fossil fuels like natural gas and coal to generate electricity and gasoline and diesel for vehicles.
Because renewable energy sources like solar, wind, and hydropower are intermittent, battery storage is essential for many applications at the utility grid and residential level.
Similarly, electric vehicles (EVs) rely on battery storage and EV charging stations to get from point A to point B.
In 2024, the US solar industry had a record-breaking year, installing nearly 50 gigawatts (GWdc) of new capacity, a 21% increase over 2023.
Solar power accounted for 66% of all new electricity-generating capacity added to the U.S. grid in 2024.
The IRA had a tremendous positive impact on job creation, with U.S. solar panel manufacturing capacity increasing fourfold since it was passed.
In early 2025, Climate Power estimated that in less than two and a half years since the passage of the Inflation Reduction Act, it created more than 400,000 new clean energy jobs and over $422 billion in investments across 48 states and Puerto Rico.
According to NES/Fircroft, the EV and renewable battery storage industry alone saw “91 new battery projects announced, equating to over $77 billion of investment. States including New York, Kentucky, Louisiana and Missouri are expected to benefit from the investment. It’s also forecast that around 92,900 battery jobs have been created.”
Residential solar + battery storage systems also exploded in popularity thanks to the Residential Clean Energy Credit which provides a 30 % tax credit against federal income tax liability to US homeowners installing an eligible system at their primary or secondary residence.
2023 saw the installation of nearly 106,000 residential solar-plus-storage projects, marking a 13% increase from the previous year.
By early 2024, it was reported that more than 500,000 U.S. households had a home battery system for backup power and solar energy optimization.
The growth continued to accelerate throughout 2024. The first quarter of the year saw residential storage installations jump by 48% compared to the same period in 2023, reaching a record 252 MW for a single quarter.
By the third quarter of 2024, the residential market set another all-time quarterly record with 346 MW of installed energy storage, a 63% increase from the second quarter.
For the full year, more than 1,250 MW of residential storage was installed in 2024, a 57% increase over 2023 totals.
Unfortunately, the solar tax credits that fueled all this growth are coming to an end seven years earlier than originally scheduled in the IRA.
Exploring the Impact of the One Big Beautiful Bill (OBBB)
The One Big Beautiful Bill (OBBB) reshapes how grid-scale and residential energy storage systems are treated under federal tax law.
The $7,500 EV tax credit is one of the first casualties of OBBB’s reversal of clean energy incentives.
Any EV purchased after September 30th, 2025, is not eligible for the IRS 30D credit, which OBBB eliminates as of that date.
Utility-scale wind and solar farms are also hard hit, with funding for even projects that have broken ground under threat.
For homeowners considering purchasing home solar panels and battery storage systems, the unexpected end of the Residential Clean Energy Credit (RECS) at the end of 2025 could have the most direct negative impact.
RECS, also known as the Federal Solar Tax Credit and the IRS 25(D) ITC tax credit, is the most generous federal government incentive for residential clean energy property ever offered and the first to extend to home battery systems.
Whole-home solar + battery storage systems like EcoFlow DELTA Pro Ultra are eligible for a 30% non-refundable tax credit for the total purchase and installation costs against personal income tax liability to eligible US homeowners installing it at their primary or secondary residence.
There’s no dollar cap on the credit, and if it exceeds your tax liability for the year of installation, you can carry it over to subsequent tax years until you receive the credit in full.
Initially scheduled to run from 2023 - 2032, the One Big Beautiful Act ends the Residential Clean Energy Credit on December 31st, 2025.
Eligible systems must be installed and operated (service date) — not just purchased — before January 1st, 2026, or they will no longer qualify for the 30% tax credit.
Essentially, that means installing a home battery system in January 2026 instead of December 2025 could cost you tens of thousands of dollars more because you will lose the 30% tax write-off.
How Much Can You Save On a Home Battery System?
Using a 21-kilowatt EcoFlow DELTA Pro Ultra solar + battery storage of 42kWh as an example, let’s look at how much you could potentially save by installing the system this year.**
Product | Retail Price* | Number of Units | Total Purchase Cost | 30% Tax Credit Savings |
EcoFlow DELTA Pro Ultra Inverter | $2,799 | 3 | $8,397 | $2,519.10 |
EcoFlow DELTA Pro Ultra LFP Home Battery | $2,324 | 7 | $16,268 | $4,880.40 |
EcoFlow 400W Rigid Solar Panel | $818 | 16 | $13,088 | $3,926.40 |
Installation Costs | $2,000 | N/A | $2,000 | $600.00 |
Gross Totals | $39,753 | $11,925.90 | ||
Net Purchase Cost After Credit | $27,827.10 | |||
In the above example, the same home solar + battery storage system would cost you almost $12,000 more in January 2026 than if you’d installed it in December 2025 and were eligible for the Residential Clean Energy Credit.
Missing out on the credit will significantly lengthen your solar payback period and negatively impact your return on investment.
Ready to Invest in Home Solar Battery Solutions?
If you’ve been on the fence about installing a home battery system to increase your family’s energy security, save money on electricity bills, and reduce your reliance on the aging power grid, now’s the time to act.
It’s impossible to predict if a tax break like the Residential Clean Energy Credit will ever happen again, but it’s still not too late to claim it in 2025.
If you’re concerned about the upfront investment, qualified solar + home battery systems like EcoFlow DELTA Pro 3 may be available with low-interest direct-from-manufacturing financing, depending on your eligibility.
As long as your home battery system has a service date of December 31st, 2025 or earlier, you should be able to claim the 30% tax credit for the total purchase and installation costs, even if you didn’t pay for everything upfront.
As always, consult with your accountant or other tax professional before making a purchase if you’re counting on receiving the credit.
EcoFlow offers a wide variety of portable power stations and whole-home battery storage solutions.
Check out our selection today.
* Disclaimer: Before reading this guidance, please remember that tax matters can be highly individualized and complex. EcoFlow does not provide any assurances or guarantees concerning potential tax credits associated with our products. Any information in this guidance is solely for educational purposes and shall not be construed as legal advice. We recommend you rely on the expertise of tax professionals for accurate and personalized tax advice.
** Based on US direct-from-manufacturer retail prices as of August 5, 2025. All prices are subject to change.
Resources Cited
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“President Trump’s One Big Beautiful Bill Is Now the Law.” 2025. The White House. July 5, 2025. https://www.whitehouse.gov/articles/2025/07/president-trumps-one-big-beautiful-bill-is-now-the-law/.
“Inflation Reduction Act of 2022 | Internal Revenue Service.” 2022. Irs.gov. 2022. https://www.irs.gov/inflation-reduction-act-of-2022.
“Credits for New Clean Vehicles Purchased in 2023 or after | Internal Revenue Service.” 2023. Irs.gov. 2023. https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after.
Eckert, Nora, and Abhirup Roy. 2025. “Automakers Push EV Sales as $7,500 US Tax Credit Is Set to End.” Reuters. July 9, 2025. https://www.reuters.com/business/autos-transportation/automakers-push-ev-sales-7500-us-tax-credit-is-set-end-2025-07-09/.
Rodríguez, Laura. 2025. “U.S. Solar Manufacturing Grows Fourfold, Thanks to Inflation Reduction Act.” Ratedpower.com. RatedPower. June 24, 2025. https://ratedpower.com/blog/us-solar-manufacturing-ira/.
“NEW REPORT: More than 400,000 New Clean Energy Jobs Have Been Created since IRA Passage | Climate Power.” 2025. Climate Power. January 14, 2025. https://climatepower.us/news/new-report-more-than-400000-new-clean-energy-jobs-have-been-created-since-ira-passage/.
Edwards, Lauren. 2023. “The Rise of Renewable Jobs under the Inflation Reduction Act.” Nesfircroft.com. NES Fircroft. November 20, 2023. https://www.nesfircroft.com/resources/blog/the-rise-of-renewable-jobs-under-the-inflation-reduction-act/.
Patel, Ritika. 2025. “Residential Energy Storage Market Trend, Size & Forecast 2024- 2034.” Emergen Research. July 10, 2025. https://www.emergenresearch.com/industry-report/residential-energy-storage-market.
Howland, Ethan. 2024. “US Energy Storage Installations Set Q1 Record with 84% Jump: WoodMac/ACP.” Utility Dive. June 25, 2024. https://www.utilitydive.com/news/energy-storage-installations-report-woodmac-acp/719769/.
Bennett, Paige. 2024. “U.S. Residential Energy Storage Installations Reach a Record High.” EcoWatch. December 13, 2024. https://www.ecowatch.com/residential-energy-storage-installations-us.html.
Bonner, April. 2025. “US Energy Storage Market Saw ‘First Year of Double-Digit Deployment’ in 2024: Wood Mac.” Energy-Storage.News. March 24, 2025. https://www.energy-storage.news/2024-energy-storage-installations-surpassed-12gw/.
“Frequently Asked Questions about Energy Efficient Home Improvements and Residential Clean Energy Property Credits - Residential Clean Energy Property Credit - Qualifying Expenditures and Credit Amount | Internal Revenue Service.” 2022. Irs.gov. 2022.