US homeowners have hit a record 673 megawatts of home battery installations, driven by state incentives and rising electricity costs. This trend promises flexibility for both grids and data centres.

The surge in residential battery storage, particularly in California and Hawaii, highlights a natural progression from increased solar panel adoption. Policies like better pricing for residential exports after sunset have spurred demand, alongside one-time payments of $400 per kilowatt by states.

Conversely, the slowdown in rooftop solar installations coincides with the end of federal tax credits, reflecting policy shifts under previous administrations. Despite this, US solar power generation continues to grow and surpass coal-fired energy in April 2026.

The rise in home batteries also mirrors a national trend: nationwide residential electricity costs increased by over 7% year-on-year in April 2026. Smart home battery systems can now store energy cheaply when demand dips, for use during peak times, offering both savings and stability to homeowners.