US homeowners have embraced home batteries in record-breaking numbers in early 2026, spurred on by state incentives while seeking to offset rising residential electricity costs. The trend could even unlock a more flexible energy supply for power grid operators and even AI data centers.

New home battery installations reached a record 673 megawatts of energy storage in the first quarter of 2026, according to the US Energy Information Administration. That trend was driven by states with high electricity prices that have implemented policies to incentivize home battery installation, Bloomberg News reported.

This residential battery trend stands out as a natural next step for states that have already successfully boosted rooftop solar adoption among homeowners, given how batteries enable homeowners to use stored solar energy at night. California and Hawaii accounted for the majority of new residential battery storage, while Texas and Arizona also saw significantly higher numbers of installations.

California incentivizes homeowners with solar panels to also install batteries by offering better pricing for residential electricity exported to the grid after sunset, Bloomberg reported. Hawaii offers a one-time payment of $400 for every kilowatt of battery storage that homeowners install.

However, the record-breaking home battery installations coincided with a slowdown in residential installations of solar panels—the result of the Trump administration and Republican-driven One Big Beautiful Bill having eliminated a 30 percent federal solar tax credit for homeowners. Nonetheless, US electricity generation from solar power continues to rise and even surpassed coal-fired generation in April.

The battery installation spree also coincides with rising electricity costs for US residential customers. The Energy Information Administration’s latest data shows that the nationwide average for residential electricity costs increased by more than 7 percent in April 2026 when compared to electricity costs in April 2025. So homeowners with smart home battery-management systems could benefit from storing energy when electricity prices are lowest and draining them during peak demand periods.