Solar + battery installation in California
Battery-coupled solar is the package that closes most often in California. Federal Clean Tech ITC (30%) on storage stacks with state net metering. Free quote, ~2 minutes.
Get my free solar + battery quote- 6.5 kW
- Average system size
- $2.85/W
- Average cost (USD)
- 7 yrs
- Average payback
- 412+
- Local installers
Why solar in California
California has the largest residential solar market in the United States, driven by some of the country's highest retail electricity rates and 280+ days of sun per year. The 2023 shift to NEM 3.0 reduced export compensation versus the old NEM 2.0 rules, but solar paired with a home battery still produces strong returns thanks to time-of-use rate spreads. The federal Residential Clean Energy Credit (Section 25D, 30%) ended on December 31, 2025 - homeowners who buy a system in 2026 no longer receive that credit, though leased / PPA / Propel systems can still indirectly access the 30% commercial credit (Section 48E) through their third-party owner. California's SGIP rebate continues to subsidize batteries for eligible customers. Most California cash-purchase systems now break even in roughly 7-10 years (longer than before, given the lost federal credit).
Incentives & rebates
Last verified:
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.
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.
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.
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).
Net metering: 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.
Why solar + battery in California
California has the largest residential solar market in the United States, driven by some of the country's highest retail electricity rates and 280+ days of sun per year. The 2023 shift to NEM 3.0 reduced export compensation versus the old NEM 2.0 rules, but solar paired with a home battery still produces strong returns thanks to time-of-use rate spreads. The federal Residential Clean Energy Credit (Section 25D, 30%) ended on December 31, 2025 - homeowners who buy a system in 2026 no longer receive that credit, though leased / PPA / Propel systems can still indirectly access the 30% commercial credit (Section 48E) through their third-party owner. California's SGIP rebate continues to subsidize batteries for eligible customers. Most California cash-purchase systems now break even in roughly 7-10 years (longer than before, given the lost federal credit).
Start your California quote
Tell us where your home is and we will match you with a vetted local installer.
How payback works in California
- System cost
- $18,525
- After 30% federal tax credit
- $12,968
- Estimated payback
- ~8.0 years
- 25-year net savings
- ~$27,533
These figures are illustrative; your actual quote reflects your roof, sun exposure, and local utility rates.
Cities we serve in California
15cities with vetted local solar + battery installers.
Frequently asked questions
How much do solar panels cost in California?
A typical 6.5 kW system in California costs around $18,000-$22,000 installed (about $2.85/W). The 30% federal Residential Clean Energy Credit ended December 31, 2025, so cash and loan purchases in 2026 no longer get that credit; leased/PPA systems can still indirectly capture the 30% via the surviving commercial Section 48E credit. Cost also varies by panel choice, roof complexity, and whether you add a battery.
Is NEM 3.0 worth it for solar in California?
Solar is still profitable under NEM 3.0, but the payback period stretched from ~5 years (NEM 2.0) to ~7 years for a typical system. Adding a battery often improves the economics by storing daytime production for use during expensive peak hours.
Do I need a battery to make solar worth it in California?
Not strictly, but batteries materially improve NEM 3.0 economics and add backup power during wildfire-season outages. A system with battery typically pays back 1-2 years faster than solar alone.
How long does solar permitting take in California?
Permitting and interconnection typically take 4-10 weeks from contract signing to activation. SB 379 requires many jurisdictions to offer instant online permitting for systems under 38.4 kW.
Are there income-qualified solar programs in California?
Yes. DAC-SASH offers free or heavily-subsidized solar for low-income households in disadvantaged communities, and SGIP offers higher battery-rebate tiers for income-qualified customers.