Because they don't degrade quickly as batteries do, fuel cells are ideally suited to provide backup power. Systems designed to generate limited power can operate essential services at times of grid power outage
Fuel cell power plants are being developed by several manufacturers to provide electricity and heat to single- or multi-family residences. Traditionally fuelled by natural gas or propane, these plants will supply base-load power or all of the electricity required by a modern home.

More substantial fuel cell power plants can be located on the premises of an institutional building, such as a school or an industrial facility, to provide heat and electrical power. By using fuel cells during peak hours, institutions can dramatically reduce their energy costs.
Fuel cell power plants have the potential to provide energy solutions - without the need to build new power infrastructure - to many communities that are not currently connected to the energy grid. These communities could eventually use renewable energy, such as hydro and wind, to produce the hydrogen they need. Plus, the hydrogen produced could also be used to power local transportation systems.