Solar Incentives in California (2026)
Every solar system in California qualifies for the 30% federal Residential Clean Energy Credit, a dollar-for-dollar reduction in your federal taxes worth about $6,300 on a typical system. California layers additional state and utility incentives on top, and its net-metering rules determine how much your panels save once they're running.
Federal tax credit
The federal credit covers 30% of the total installed cost — panels, inverter, labor, permitting, and battery storage included — with no cap. It applies the year your system is placed in service and can carry forward if it exceeds your tax liability. (This is a tax credit, not a refund; consult a tax professional.)
California state & utility incentives
| Incentive | What it offers |
|---|---|
| SGIP battery rebate | Self-Generation Incentive Program rebates for home battery storage, with higher amounts for low-income and high-fire-risk areas. |
| Property tax exclusion | Active solar systems are excluded from property tax assessment, so going solar doesn't raise your property taxes. |
| Local utility programs | Some municipal utilities (e.g., LADWP, SMUD) offer additional rebates — check your provider. |
California ended its state solar tax credit; the 30% federal credit plus SGIP (for batteries) are the main incentives today.
Net metering in California
Net billing (NEM 3.0) — exports credited near wholesale rates, which makes adding battery storage far more valuable than under older net metering.
See solar panel costs near you
Compare local solar prices by city, then stack these California incentives on top.
Solar panel cost by city →Frequently asked questions
- What solar incentives are available in California?
- Every California system qualifies for the 30% federal Residential Clean Energy Credit. On top of that, California offers SGIP battery rebate, Property tax exclusion, Local utility programs.
- How much is the federal solar tax credit in California?
- The federal credit is 30% of the installed system cost. On a typical $21,000 California system that's about $6,300, bringing the net cost to roughly $14,700.
- Does California have net metering?
- Net billing (NEM 3.0) — exports credited near wholesale rates, which makes adding battery storage far more valuable than under older net metering.
Incentive programs change often — verify current details on DSIRE and with your utility before deciding.