Solar Incentives & Tax Credits in California (2026)

California residents can take advantage of multiple solar incentives to reduce the cost of going solar. With 4 state and local programs, homeowners can significantly lower their upfront investment and accelerate their payback period.

Available Incentives in California

Net Energy Metering (NEM 3.0)

Program

Earn credits for excess solar energy exported to the grid under California's updated net metering program.

Value

Varies by utility and time of export

Eligibility

Customers of PG&E, SCE, and SDG&E

Property Tax Exclusion

Exemption

Solar energy systems are excluded from property tax assessments through 2025.

Value

100% property tax exemption on added value

Eligibility

All residential solar installations

Self-Generation Incentive Program (SGIP)

Rebate

Rebates for installing energy storage systems paired with solar.

Value

Up to $1,000/kWh for battery storage

Eligibility

Customers of eligible utilities

PACE Financing

Program

Property Assessed Clean Energy financing allows you to finance solar through your property tax bill.

Value

Financing up to 100% of project cost

Eligibility

Property owners in participating jurisdictions

Net Metering in California

Available

California's NEM 3.0 program provides credits for exported solar energy at rates that vary by time of day. While rates are lower than retail, pairing solar with battery storage maximizes savings.

Renewable Portfolio Standard (RPS)

California RPS Target

100% clean energy by 2045

A strong renewable portfolio standard signals long-term government support for solar energy, which often translates to continued incentives and favorable policies for homeowners.

Solar Incentive FAQs for California

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