Consumer energy platform Palmetto has announced the Energy Backup Plan, a standalone home battery subscription service.available to homeowners in 25 U.S. states.
Through the program, the company says it will provide customers with resilience against severe weather and power interruptions without the traditional upfront cost of ownership.
The program specifically targets the estimated 4 million U.S. rooftop solar owners without battery storage, and Palmetto is pitching the plan to its dealer network as a way to re-engage past solar customers and overcome financial objections to adding storage. However, the plan is open to all homeowners in the states served, regardless of whether they currently have solar installed.
“Backup storage is the missing piece of true home resilience, yet buying a battery outright can require thousands of dollars,” said Palmetto CEO Chris Kemper in a statement. “The Palmetto Energy Backup Plan removes that barrier so families can keep the lights on without the financial stress.”
Plan features
Palmetto says the Energy Backup Plan is a $0-down lease with predictable monthly payments over a 12-year term that cover installation, system monitoring and ongoing maintenance. On its web page for installation partners, the company cites pricing as low as $98 per month.
Battery models available under the plan are not listed, but Palmetto’s current approved vendor list (AVL) for Energy Backup includes batteries by Tesla, Enphase and SolarEdge.
The company says the systems are generally designed to power essential loads during a blackout, though whole-home backup is possible if a customer opts for a larger battery configuration.
Homeowners can use the Palmetto app to configure backup reserve levels and use stored energy for rate arbitrage — discharging the battery during times of peak utility rates to lower their electric bills. The company also points to
At the end of the term, Palmetto says homeowners have the option to “renew, buy out, upgrade, or walk away.” During the term, the company promises the ability for customers to transfer the lease to a homebuyer.
The standalone storage market
These kinds of standalone battery leasing programs are becoming popular in the U.S. as third-party owned energy storage systems will continue to qualify for the Section 48E tax credits through the end of 2033 at the current 30% level, and projects that begin construction by the end of 2034 and 2035 can qualify for 75% and 50% of the tax credit’s full value.
Standalone energy storage subscriptions have become popular in areas of Texas, where the deregulated market allows the systems’ third-party owners to generate revenue by aggregating the power output and energy storage capacity of their fleets of batteries to provide grid services.
Programs from companies like Base Power, Lunar Energy/Octopus Energy and Solrite/sonnen highlight some of the possibilities of battery-only subscriptions. Typical features of these plans are somewhat lower electricity rates than other retail electric providers, along with guaranteed home backup in case of a grid outage caused by inclement weather.
Distributed networks of batteries are also getting their due in regulated utility markets through pilot programs and virtual power plants (VPPs). For instance, Tesla has offered its batteries to customers with or without solar panels with discounted lease pricing to homeowners in certain areas who agree to participate in VPP programs.
Missouri utility Evergy is running a home battery storage pilot it launched in 2023 to provide 16 kWh batteries to 50 homeowners. The company is charging those customers $10 per month through the end of 2026 to participate, as long as they agree to let the utility access the battery’s energy storage and data.
In one of the most well-known utility battery lease plans, Vermont utility Green Mountain Power offers battery installations directly to its customers for a flat fee of $55 per month for 10 years. Participants in the program agree to allow the utility to access their battery during times of peak demand
Access to these kinds of battery programs is likely to expand as demand and prices for energy from the grid continue to increase. While analysts at Wood Mackenzie anticipate the residential energy storage market will contract slightly in 2026 compared to 2025, they predict an average annual growth rate of 12% for the segment through 2031.
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