Battery Backup vs. Standby Generator in Santa Clara County
September 24, 2025
Power Your Peace of Mind
Find the Right Power Solution for Your Home
When the power goes out in Santa Clara County, homeowners with solar already have an advantage. But the real decision is this: do you protect your home with a battery backup system or a standby generator?
At Dollens Electric, we’ve guided local families through this choice for decades. Both options have their place, but for most solar homes in the Bay Area, a battery delivers more value, bigger incentives, and quieter peace of mind. Here’s the full breakdown—local rebates, real costs, and what works best for your home.
Why Batteries Are the Better Buy for Most Homes
If your home is connected to PG&E and already has solar, a battery backup system makes the most financial and practical sense.
Monthly Bill Savings – Under California’s new Solar Billing Plan (NEM 3.0), exporting power earns far less than what PG&E charges at night. A battery lets you store solar energy by day and use it during expensive evening hours.
Big Incentives – The 30% federal tax credit applies to batteries, and California’s Self-Generation Incentive Program (SGIP) can add thousands more in rebates. Some homeowners—especially those on medical baseline or in fire-risk zones—qualify for rebates that cover nearly the entire system.
Silent and Clean – No fumes, no noisy engines, no trips for fuel. Just seamless, automatic backup.
Works with Solar During Outages – Unlike generators, batteries can recharge with your solar panels in daylight, keeping you powered through extended outages.
When a Generator Still Makes Sense
Generators are still valuable for some homes, especially in rural areas or where outages last for multiple cloudy days.
Runs Indefinitely – As long as your natural gas or propane supply holds, a standby generator can run day after day.
Whole-Home Capacity – Large generators (18–24 kW) can power HVAC, well pumps, and EV charging simultaneously.
Lower Upfront Cost – Installed costs are typically lower than batteries, though maintenance and fuel costs continue year after year.
Generators do require permits through both your city building department and, in some cases, the Bay Area Air Quality Management District. Noise ordinances may also apply in neighborhoods.
| Feature | Battery Backup | Standby Generator |
|---|---|---|
| Incentives | 30% Federal Tax Credit + SGIP rebates | Small PG&E rebate ($300–$500) |
| Monthly Bill Savings | Yes, shifts solar from day to evening | None |
| Noise/Emissions | Silent, zero-emission | Noisy, exhaust fumes |
| Fuel & Maintenance | None | Regular service + fuel costs |
| Duration | Limited by capacity, recharges daily with solar | Indefinite (with gas/propane supply) |
| Permits | Electrical & fire clearance | City permits + Air District (if >50 HP) |
Incentives and Rebates in Santa Clara County
Federal Clean Energy Credit – 30% off the installed cost of qualified batteries through 2032.
California SGIP – Rebates up to $0.50–$1.00 per watt-hour, often $5,000–$10,000 off per battery. Equity and resiliency tiers can cover most or all of the cost.
PG&E Backup Power Rebate – $300–$500 for qualifying customers in fire-threat or outage-prone zones.
Property Tax Exclusion – Solar and storage upgrades are excluded from property tax assessments through at least 2027.
What It Costs
Battery Backup – Around $15,000 per unit installed before incentives. After tax credits and SGIP, many families see costs drop closer to $8,000–$10,000.
Standby Generator – Typically $7,000–$15,000 installed depending on size and gas line requirements. Ongoing fuel and maintenance add to lifetime costs.
Dollens Electrics Recommendation
For most Santa Clara County solar homeowners, a battery is the smarter buy. It saves money every month, qualifies for major incentives, and provides quiet, reliable backup when the grid goes down.
For rural homes, properties with well pumps, or families needing multi-day, whole-home backup, we recommend a hybrid solution: a battery for everyday use and a generator for long-duration coverage. We design these systems to work seamlessly and code-compliantly together.
Frequently Asked Questions
Does PG&E offer rebates for home batteries?
Yes. PG&E participates in California’s Self-Generation Incentive Program (SGIP), which provides rebates for battery storage. Depending on eligibility, rebates can range from $0.50/Wh to $1.00/Wh, often saving $5,000–$10,000 per battery.
Is a generator or battery better under NEM 3.0?
Batteries usually win. They allow you to store your solar energy for peak-rate hours, cutting PG&E bills. Generators don’t provide bill savings but can cover long outages.
Can solar panels recharge a battery during an outage?
Yes. A properly designed battery system with solar will continue charging even when PG&E’s grid is down.
Do standby generators need permits in Santa Clara County?
Yes. Most require city permits, and larger units need an Air District permit. Batteries only require building/fire clearance.
Call us today: (408) 929-6100 For Your Free Estimate
Take the Next Step
Dollens Electric is a family-run company proudly serving Santa Clara County. We design backup power systems that are safe, reliable, and eligible for every rebate you deserve. Whether you’re leaning toward a battery, a generator, or a hybrid solution, we’ll make sure your system is sized right, code-compliant, and built to last.
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