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)
ProgramEarn 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
ExemptionSolar 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)
RebateRebates for installing energy storage systems paired with solar.
Value
Up to $1,000/kWh for battery storage
Eligibility
Customers of eligible utilities
PACE Financing
ProgramProperty 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
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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