CA incentive guide
California solar incentives in 2026
Last updated · every CA program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in California right now is SGIP battery rebate. Overall, the state's incentive stack rates as moderate compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in California this year, there is no federal credit. That is a roughly $8,040 swing on an $26,800 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What California offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | No | — |
| Rebate or performance payment | Yes | SGIP battery storage rebate; funding tiers vary and deplete |
| SREC market | No | — |
| Sales tax exemption | No | — |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
California solar tax credit
There is no California solar tax credit in 2026, and no federal one either — Section 25D ended for systems installed after December 31, 2025. What California does offer on the tax side is property tax exemption, covered below.
California solar rebates and grants
SGIP battery storage rebate; funding tiers vary and deplete. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it.
California offers the SGIP battery rebate (funding varies) and property tax exclusion for solar. There is no general state solar tax credit; low-income programs such as DAC-SASH serve eligible households.
Net metering and export rates in California
California operates under NEM 3.0 net billing: exports to PG&E, SCE, and SDG&E earn an avoided-cost value far below retail. Pairing solar with a battery to maximize self-consumption is now central to the economics.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a California home at an assumed $0.31/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in California costs roughly $20,400–$26,800 installed before incentives, producing about 12,080 kWh a year and saving around $3,086 in year one — a simple payback near 7–9 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are California solar tax credits worth in 2026?
California offers no residential solar income tax credit in 2026, and the 30% federal credit ended for systems installed after December 31, 2025. What remains on the tax side is property tax exemption, which lower cost indirectly rather than paying you back.
Does California have solar rebates?
Yes. SGIP battery storage rebate; funding tiers vary and deplete. Rebate programs in CA are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there a California solar property tax exemption?
Yes. California excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill.
What solar incentives are available in California in 2026?
California offers the SGIP battery rebate (funding varies) and property tax exclusion for solar. There is no general state solar tax credit; low-income programs such as DAC-SASH serve eligible households. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in California?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does California have net metering?
California operates under NEM 3.0 net billing: exports to PG&E, SCE, and SDG&E earn an avoided-cost value far below retail. Pairing solar with a battery to maximize self-consumption is now central to the economics. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in California?
Before incentives, a typical 8 kW system in California runs roughly $20,400–$26,800. SGIP battery storage rebate; funding tiers vary and deplete — the value depends on current funding. See our full California cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: