Governor Newsom Just Signed a Law That Turns Your Home Battery Into a Valuable Energy Asset
California Just Signed a Law That Turns Your Home Battery Into a Valuable Energy Asset
On September 30, 2026, Governor Gavin Newsom signed Senate Bill 913, a law that changes how California looks at the batteries sitting in homeowners' garages. Under SB 913, the California Public Utilities Commission must create a method to value customer-owned battery storage when those batteries export power to the grid during periods of high demand. That may sound technical, but the message for homeowners is simple. California is moving toward a future where your home battery is not just backup power. It is a valuable energy asset.
Why the state wants your battery
California's grid is under the most pressure on hot summer evenings, when air conditioners are running and solar production is fading. Those are the hours when electricity is most expensive to produce and deliver. Batteries that charge from rooftop solar during the day and discharge in the evening can fill that gap without firing up a gas peaker plant. Home batteries have already proven they can do this at scale. On September 9, 2026, more than 140,000 home batteries discharged over 580 megawatts to the grid during a heat wave, the largest residential virtual power plant dispatch on record. SB 913 is the state's way of putting a formal value on that kind of contribution.
Homeowners have already been paid for this
Getting compensated for battery power is not a new idea in California. In 2022, PG&E and Tesla launched an emergency load reduction program that paid Powerwall owners $2 for every kilowatt-hour their battery delivered to the grid during grid emergencies. Participants typically earned $300 to $400 in that first season, with some earning around $575. Tesla has said it paid Powerwall owners nearly $10 million in 2024 for taking part in its California virtual power plant. Programs and payment rates change over time and depend on eligibility, but the direction is clear. Batteries in homes are becoming part of how California keeps the lights on, and the state is building a framework to recognize that value.
What this means if you are on SCE, SDG&E, or PG&E
For homeowners served by Southern California Edison, San Diego Gas & Electric, or Pacific Gas and Electric, a solar and battery system delivers value in several ways at once.
Control: you store your own solar energy instead of sending as much of it back to the grid at low export values.
Protection: a battery keeps critical loads like the refrigerator, lights, Wi-Fi, and medical devices running when the grid goes down.
Savings: you use stored energy during expensive evening hours instead of buying as much power from the utility at peak time-of-use prices.
Future value: as SB 913 is implemented, home batteries could become increasingly valuable as grid resources through virtual power plant programs, subject to program eligibility and future rules.
Why timing matters
Homeowners who already have solar and storage installed are positioned to participate as these programs expand. Those who wait will still be buying peak-priced power from the utility while the rules are written. And you do not have to purchase a system to get started. Third-party ownership programs, often called TPO, allow qualifying homeowners to get solar and battery storage installed without buying or financing equipment, while still enjoying lower energy costs and backup power. California has made its position clear: the battery in your garage matters to the grid. The question is whether your home has one working for you. A quick review of your electric bill can show whether a solar and battery system makes sense for your home.
To find out if your home qualifies for a TPO solar and battery program, visit myhomesolution.org/california_public_utility_commissions
