California · Incentives guide

California Solar Incentives (2026)

The federal residential solar credit expired at the end of 2025. Here are the four state programs California homeowners can still use in 2026 — and which are already closing.

Verified against CPUC, BOE & state sourcesUpdated 2026-07-165.0–6.0 peak sun hours

At a glance

Net Billing Tariff (NEM 3.0)Active
SGIP (Self-Generation Incentive Program)Closed to new applicants
Active Solar Energy System property tax exclusionClosing Jan 2027
DAC-SASH / income-qualified solar programsVerify availability

Program details

Net Billing Tariff (NEM 3.0)

Active

California's current rooftop-solar compensation rule. Credits for exported solar are valued at hourly 'avoided cost' rates, not the retail rate — which makes self-consumption and batteries central to the economics.

Value

Export credits average roughly $0.05–$0.08/kWh blended across the year (vs. ~$0.30/kWh retail under the old NEM 2.0) — about a 75% cut. Exact rate varies by hour, season, and utility via the CPUC Avoided Cost Calculator.

Who receives it

Homeowner (bill credits).

Eligibility

Applies to new solar interconnections with the three IOUs — PG&E, SCE, SDG&E. The NEM 2.0 grandfathering window has closed (final Permission-to-Operate deadline was April 15, 2026), so new systems can only enroll in NEM 3.0. Publicly owned utilities (LADWP, SMUD, etc.) set their own, often more favorable, rules.

Verify at source

SGIP (Self-Generation Incentive Program)

Closed to new applicants

California's battery-storage rebate program, administered by the CPUC. Note: most SGIP budgets are no longer open to new applicants in 2026 — verify current status before relying on it.

Value

When a budget is funded, rebates run per-kWh of storage: roughly $150–$250/kWh (General Market) up to ~$1,000–$1,100/kWh (equity/RSSE tiers). BUT as of 2026 the General Market, Equity, and Equity Resiliency budgets have closed to new applicants; the income-qualified RSSE (AB 209) budget is the remaining pathway and is on a waitlist.

Who receives it

Homeowner (rebate), where a budget is open.

Eligibility

Battery storage in PG&E, SCE, SDG&E, or SoCalGas territory. Availability and rate depend heavily on which budget is open and remaining funds — status changes frequently. Always confirm current budget/waitlist status with the Program Administrator before assuming a rebate.

Verify at source

Active Solar Energy System property tax exclusion

Closing Jan 2027

The added home value from a qualifying solar system is excluded from property tax reassessment — but this exclusion is scheduled to sunset.

Value

100% exclusion of the added assessed value, for systems completed before January 1, 2027. Under current law (Rev. & Tax Code §73) the exclusion sunsets Jan 1, 2027 unless the legislature extends it; systems completed on/after that date could be assessed as new construction. Existing qualified systems keep the exclusion until a change of ownership.

Who receives it

Homeowner.

Eligibility

Qualifying active solar energy systems completed before the Jan 1, 2027 sunset. Verify the current sunset/extension status with the BOE, as extension bills have been proposed.

Verify at source

DAC-SASH / income-qualified solar programs

Verify availability

Incentives that help qualifying low-income homeowners in disadvantaged communities install solar at little or no cost.

Value

Upfront per-watt incentive that can cover most or all of a qualifying system's cost. Program funding and successor programs change — confirm what is currently open.

Who receives it

Qualifying low-income homeowner.

Eligibility

Income-qualified, owner-occupied homes in designated disadvantaged communities within IOU territory. Verify current program availability, as low-income solar programs have shifted.

Verify at source

Compare solar companies in California

Browse local solar installers across 81 California cities. Compare companies, read reviews, and get quotes.