For years, the solar Investment Tax Credit has been the industry’s golden ticket, covering nearly a third of installation costs and fueling record growth across residential and commercial markets. But the policy landscape is changing, and with it, the stability many companies have relied on.
So, how is a solar business meant to survive going into 2026? We’ve talked a lot about strategies for success and diversification in previous articles, but let’s focus on one key one today: solar batteries.
New legislation has established firm deadlines: projects must break ground sooner and be placed in service before the end of 2025 to qualify for incentives. The Solar Energy Industries Association’s (SEIA) solar market insight report notes that install volume in Q2 2025 is down 24% from Q2 2024 and 28% down from Q1 2025. SEIA and other industry groups are predicting 2026 to be another down year, largely due to tax credit loss.
By incorporating batteries into the fabric of a solar business, companies open up major avenues for success and meet major market needs.
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Why Batteries Might Be the Strategic Differentiator
With the policy shifts underway, both federally and among local utility net metering, solar batteries are quickly becoming central to both the economics of solar and the long-term value proposition.
- Grid Value, Reliability, and Risk Mitigation
Intermittency is a growing liability with an aging electric grid, as solar penetration rises. Outages are up 16% and duration is up 33%. Solar batteries solve for it by smoothing peaks and valleys, providing backup power, and opening new revenue streams through demand response, peak shaving, and arbitrage. For operators and customers alike, storage reduces volatility and strengthens resilience. - Cost Declines and Technology Maturity
Battery and inverter prices are trending downward, while installation processes and financing options are improving. This convergence makes solar + storage not only feasible but, in many cases, superior to solar-only returns—particularly in markets where net metering is under pressure or utility compensation models are shifting. - Incentive Pathways and Market Support
While national incentives are fading away, more states and utilities are adopting favorable storage incentives. Many electric utilities are offering customers direct cash storage incentives or discounts through Virtual Power Plant programs.
With ever-evolving grid policy, batteries are no longer a “nice to have.” They can sustain growth, assist with policy uncertainty, and keep solar a winning strategy well beyond the ITC phase-out.
Why Talk About Batteries?
We’re not advocating for companies to push solar batteries on their customers unnecessarily. Above all, trust, transparency, and discovery of true goals should be at the core of every conversation with a potential customer.
If batteries aren’t already a part of the conversation your sales team has with prospective clients, they need to be. Data from EnergySage suggests that 73% of homeowners shopping for solar power express interest in adding battery storage. In their latest Solar Market Insight Report, SEIA notes that solar + storage accounts for 82% of all new power added to the grid.
Homeowners are interested in solar batteries, and by not giving homeowners the option, you’re leaving money on the table.
What Companies Can Do Now
Not only will adding batteries to your solar offering have the potential to increase revenue on day one, but by incorporating batteries, you open up new potential revenue sources for return or retrofit revenue.
As of May 2024, the US solar market crossed over 5 million solar installations. Wood Mackenzie’s numbers show a 25% battery attachment rate as of Q1 2024. Obviously, the attachment rate has been steadily increasing over time, but taking these recent rates into account would suggest 3.75 million US homes have solar without battery storage – an absolutely enormous opportunity for the retrofit storage business.
If you’re a solar company, installer, owner, operator, or salesperson, here are strategic moves you can make today to stay ahead:
- Design for storage now: Even if your customer wants to go solar-only, plan in infrastructure, wiring, space, and permitting for future battery addition. That allows flexibility for retrofits and return revenue later on.
- Optimize for total value, not just energy: Factor in resilience, grid services, demand charges, rate arbitrage, backup power in your value calculations and conversations. Storage isn’t just energy; it’s flexibility. Take the time to explain these nuances to homeowners to build trust in what you’re offering.
- Build supply chains & compliance capacity: Domestic content, labor, foreign entity restrictions are increasingly features, not optional. Companies that build compliance & reporting systems will win.
- Innovate financing models: Many financiers and local utilities are beginning to offer storage-only financing. In the shifting world of solar financing, locking in a dependable option for homeowners is paramount.
Monitor policy & market shifts carefully: Some states/localities will fill gaps left by federal incentive shifts. Watch utility rate reforms, state and local incentives, and shifting policy. Be ready to adapt.
Bottom Line: Are Solar Batteries the Key?
Solar batteries can be the key to continued success post-solar ITC phase out, but only if execution is sharp, timing is leveraged, and strategy is adaptive. In a market that will likely be down due to the tax credit loss, there is no single solution to success. However, leveraging the value and desire for battery storage will be a critical component of any successful solar business.
If you wait for clarity, delays, cheaper hardware, or a more favorable policy, you might miss the critical window. The next couple of years will be challenging for the solar industry, but it will be the companies that adapt and find value for their customers in multiple areas that will come out ahead.
If you’re looking for solutions to provide solar homeowners with additional peace of mind with their battery storage investment, check out SI-30 Total and SI-30 Battery. SI-30 Total is Solar Insure’s solution for new solar + storage installations, and SI-30 Battery is designed specifically for retrofit installations.
These long-term 30-year warranties provide coverage for parts, labor, and battery replacement for homeowners.
Follow Solar Insure on our social media channels for all the information you could ever need about solar. Stay up to date with the latest in solar tips, trends, SI-30 product notes, and pro tips for success in your solar business.
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