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Solar incentives · California · 2026
Solar rebates in California.
The federal, state, and utility solar incentives available in California for 2026, then matched to a vetted local installer.
Programs · California
4
active programs & rules in 2026
NEM 3.0 · verified 2026-05-26
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The full list
4 programs available right now in California.
Tax credit
#01
Federal Residential Clean Energy Credit (Section 25D) - ENDED
The 30% federal Residential Clean Energy Credit (IRC Section 25D) expired for property placed in service after December 31, 2025, under the One Big Beautiful Bill Act. Homeowners who purchased and installed solar by the end of 2025 can still claim it on their 2025 return. Cash and loan purchases made in 2026 receive no federal tax credit.
Source ↗ Tax credit
#02
Federal Commercial ITC (Section 48E) - via Lease / PPA
Section 48E (the commercial Clean Electricity Investment Credit) survives at 30% and is still available to third-party owners of residential systems under solar leases, PPAs, and similar TPO structures. The TPO company claims the credit and typically passes the savings through to the homeowner. To qualify, projects must begin construction by July 4, 2026; otherwise they must be placed in service by December 31, 2027. Foreign Entity of Concern (FEOC) sourcing rules also apply.
Source ↗ Rebate
#03
Self-Generation Incentive Program (SGIP)
California's SGIP pays up-front rebates for battery storage. The Equity Resilience tier offers roughly $1,000/kWh for income-qualified customers in Tier 2/3 High Fire-Threat Districts, on designated medical-baseline lists, or in disadvantaged San Joaquin Valley communities - enough to fully cover many residential battery installs. As of 2026, all SGIP residential budgets (including Equity and Equity Resilience) are fully reserved and operating on a waitlist; new applicants enter a queue and receive funding as existing reservations cancel.
Source ↗ Tax credit
#04
Property Tax Exclusion (Active Solar Energy System Exclusion)
California excludes the added home value of an active solar energy system from property tax assessment under Revenue & Taxation Code §73. The exclusion currently applies to qualifying systems built and placed in service through the 2026-27 fiscal year (sunset has been extended multiple times - confirm current sunset before relying on it).
Source ↗
Net metering · California
NEM 3.0
Under NEM 3.0 (effective April 2023), exported solar energy is credited at the avoided-cost rate rather than the retail rate, with values varying by hour, season, and utility. Batteries become much more valuable: storing daytime production to offset peak evening usage typically delivers better returns than exporting.
Worth checking before you sign:
taking a rebate can change your net-metering terms, and export credit rules
differ by utility. Your matched installer confirms the exact numbers for
your address.
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Colleen Brazeau
3 weeks ago
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