Palmetto launches standalone residential battery subscription plan

Palmetto, a home energy company, has launched a home battery subscription called the Energy Backup Plan, now available in 25 states. Instead of buying a battery outright, which can cost thousands of dollars, homeowners can lease one for $0 down, with monthly payments starting around $98, over a 12-year term. That cost covers installation, monitoring, and maintenance. Battery brands offered include Tesla, Enphase, and SolarEdge, though the exact model depends on your home. The plan is aimed at solar owners who never added storage, but it's open to any homeowner in the covered states, solar or not.

The battery is meant to keep essential circuits running during a power outage, though a larger battery can back up the whole house. Through Palmetto's app, you can also set the battery to discharge during peak-priced hours to lower your electric bill, a strategy called rate arbitrage. At the end of the 12-year term, you can renew, buy the system, upgrade it, or walk away, and the lease can transfer to a new owner if you sell your home.

Standalone battery leases like this are becoming more common as federal tax credits continue to support third-party-owned storage systems through the early 2030s. Similar programs already exist in Texas's deregulated electricity market, and utilities in places like Missouri and Vermont run their own battery lease or pilot programs in exchange for access to the stored power during peak demand. Industry analysts expect the home battery market to keep growing over the next several years, so more options like this may become available depending on where you live.