There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
2023 is shaping up to be a year of huge changes for residential solar energy programs in California. The state Public Utilities Commission has recently ruled on Net Energy Metering, or NEM 3.0, the energy billing arrangement under which solar panel owners earn credit for their excess energy that they can later use to offset energy the draw from the grid at night. The changes will result in much worse financial returns from solar for people who get panels installed after the new rules take effect.
On this page, we cover all of the solar and battery incentives, rebates and tax credits available for your California home solar installation. We also provide guidance on how low income solar power programs work.
We also encourage you to use the California solar incentives calculator above. It allows you to drill down and show only the solar incentives that are applicable where you live.
Learn what solar incentives are available to California homeowners
See what California solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or California solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in California
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
With net metering, or “net energy metering” (NEM), you get credit for the electricity you send back to the grid with your solar panels. Under the state's current rules, called NEM 2.0, that credit is based on the retail rate of electricity, meaning the energy your solar panels make goes to reducing your electric bill by a lot.
The amount of kilowatt hours (kWh) you send to your local utility and pull from it are “netted” monthly. If you use more than you send to the grid over the course of the year, you pay for the difference, but if you send more than you use, the utility credits the extra on your bill once per year.
Under NEM 2.0, the energy you use from the grid comes with a small “non-bypassable charge” of around 3 cents per kilowatt hour (kWh). You don’t get this small portion of the retail price back as a credit when you offset that usage by sending solar electricity back to the utility grid. The money raised by these charges goes to pay for important programs across the state. (Note, if you’re an LADWP customer, you do still get full retail NEM without these non-bypassable charges)
You’ll also need to sign up for a time-of-use billing plan (TOU), which has variable energy costs based on the time of day. Evening has the most demand on the grid, so your energy prices will be higher at this time.
While that may sound bad, you can eliminate your use of the grid at peak times by installing a battery alongside your solar system. You can charge the battery during the middle of the day with solar electricity and discharge it in the evening, when purchasing from the grid would have been more expensive.
With or without a battery, NEM 2.0 credits can be extremely valuable over the life of your solar system. Unfortunately, it will be replaced by a new program called Net Billing in April of 2023. This new program will greatly reduce the value of solar energy credits, making solar a much worse financial decision.
Luckily, you can still get on NEM 2.0 now. Find a solar installer before April to maximize your savings.
Learn more:
California used to have a robust solar rebate program called the California Solar Initiative (CSI). The rebates available were fully used up by 2014, but the program succeeded in driving 3 terawatts of solar energy capacity to the grid.
Rebates live on for Californians with low income however. Check out the SASH and MASH programs outlined in the California solar incentives for low income households section below.
While some states still offer their own state tax credits for solar energy, California doesn’t anymore.
However, Golden State policymakers have enacted a property tax exemption for solar PV which is still going strong. This is a great perk, since solar panels will increase the value of your home by roughly 70% of system costs. So while the value of your home will go up, your property taxes won’t.
Example: If your solar system costs $20,000, your estimated property value increase of $14,000 will be tax exempt.
California is not only a national leader in solar, it is also a leader in solar battery storage, thanks in part to the Self Generation Incentive Program (SGIP).
If you install a battery storage system on your property that is serviced by PG&E, SCE, Southern California Gas, or SDG&E, you can take advantage of the SGIP incentive.
Battery storage systems that are smaller than 10 kW and are installed on a residential property are eligible for an incentive of $0.25 per watt hour of storage installed.
We outline how much you can save on battery storage when you use the SGIP incentive program in our breakdown of the SGIP rebate.
SGIP also has what is known as the “equity budget”. This budget has money set aside for solar batteries that are installed in low-income and disadvantaged areas.
The goal of the residential equity incentive is to catalyze more battery storage deployment in low-income areas.
Residential equity systems will receive a rebate of $0.85 per watt hour installed.
Low income homes that are located in either a Tier 3 or Tier 4 fire district, or that are in areas that have experienced two or more planned safety power shutoff (PSPS) events can qualify for an even higher incentive when they install battery storage on their home - this is known as the equity resilience incentive.
Projects that qualify for the equity resiliency incentive program will receive a rebate of $1.00 per watt hour of storage installed.
This covers almost the entire cost of a solar battery system. Check our blog on SGIP's equity resiliency program for more information.
Throughout the US, solar is adopted more in areas that have higher incomes even though low-income communities have the most to gain from the benefits of solar power.
Low income solar incentives have the ability to spur solar development in disadvantaged communities.
California has two types of low-income solar programs which are aimed for single-family homeowners and owners of multi-family properties:
The California SASH solar program provides huge solar money to single family homeowners. The program is administered by the non profit organization Grid Alternatives. They help provide green job training in low income areas to help people secure good-paying green energy jobs.
SASH program requirements
If you can qualify for the SASH program, you’ll get an upfront incentive of $3 per watt of solar installed.
So, if you want to install a 6 kilowatt system on your home, you’ll get an incentive of $18,000! That’s basically enough to pay for the entire cost of your solar system.
If you meet the following criteria, you could get this solar money:
To check if you live in one of the approved areas, explore this map.
The MASH program is designed for those fortunate enough to own a multi-family housing complex.
Those people can qualify for a large grant program to retrofit low-income multi-family housing developments with solar power.
Grants range from $1.10 to $1.80 per watt of solar installed. Exact amounts for different project types are listed on the California Public Utilities Commission website.
To qualify for MASH:
There are some additional qualifications listed in the MASH program handbook. The MASH program is currently fully subscribed. New applications will be placed on a waitlist.
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Prices based on a 7.7kW system, after 30% federal tax credit
497 solar companies in California provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 282 Reviews
Lo M, over 1 month
We were planning to get solar installed for a while. Finally, we went for it and made the April deadline before the net metering rules changed. Although, we would have done the installation regardless. A big shout-out goes to Cosmic Solar for providing us with stellar service. Pey Shadzi is an incredible wealth of knowledge and knows everything solar. Pey provided us with the best solar options based on our needs and usage. He is honest, personable, and genuine. The entire team kept us informed every step of the way and paid attention to all details. The team at Cosmic Solar made our installation a seamless process. Cosmic Solar is a reputable company. Our solar is up and running, and I am thrilled to be doing our part for the environment. Several solar installation companies broached us, and some companies were pushy. That was not the case with Cosmic. Hands down, I recommend Cosmic Solar for all your solar needs. This company goes the extra mile, and the whole process was a positive experience. It’s clear that customer service is this company's priority. Thank you to the team, Pey, Mary, Ashley, Hector, and Witchy!
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Average cost (5kW system)
$19,300 ($3.86 per watt)
Lo M, over 1 month
We were planning to get solar installed for a while. Finally, we went for it and made the April deadline before the net metering rules changed. Although, we would have done the installation regardless. A big shout-out goes to Cosmic Solar for providing us with stellar service. Pey Shadzi is an incredible wealth of knowledge and knows everything solar. Pey provided us with the best solar options based on our needs and usage. He is honest, personable, and genuine. The entire team kept us informed every step of the way and paid attention to all details. The team at Cosmic Solar made our installation a seamless process. Cosmic Solar is a reputable company. Our solar is up and running, and I am thrilled to be doing our part for the environment. Several solar installation companies broached us, and some companies were pushy. That was not the case with Cosmic. Hands down, I recommend Cosmic Solar for all your solar needs. This company goes the extra mile, and the whole process was a positive experience. It’s clear that customer service is this company's priority. Thank you to the team, Pey, Mary, Ashley, Hector, and Witchy!
4.90 402 Reviews
Jbaus, 3 weeks ago
I am unhappy with the installation and this companies disregard for customer satisfaction. And they know I am and they knew I was before the installation was done and they DO NOT CARE. I was told in the beginning I would not see panels from the front of the house. I caught the problem during the install (I could that I would be able to see panels from the front of the house and from my pool.) They said "let us finish this part and we will come back and fix the issue." Stupid me believed them - they did not. I paid around $80k for the system and I was told it would be around $1,300 to move the offending panels - but I would have to pay the cost. They did not even offer to split the difference with me. Their solution - lay the panels flat (which they and I know makes them less efficient - aka I pay for that in the long run with less production and then requires more cleaning). I pointed out that for a measly 1300 they could have a very happy client. They did (do) not care. So now I have a bunch of flat less efficient panels that I can still see - just not as much. Will I use them for anything ever again - NO! Not even panel cleaning. I used Hot Purple for my first house and I wish I had used them for this one.
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Jbaus, 3 weeks ago
I am unhappy with the installation and this companies disregard for customer satisfaction. And they know I am and they knew I was before the installation was done and they DO NOT CARE. I was told in the beginning I would not see panels from the front of the house. I caught the problem during the install (I could that I would be able to see panels from the front of the house and from my pool.) They said "let us finish this part and we will come back and fix the issue." Stupid me believed them - they did not. I paid around $80k for the system and I was told it would be around $1,300 to move the offending panels - but I would have to pay the cost. They did not even offer to split the difference with me. Their solution - lay the panels flat (which they and I know makes them less efficient - aka I pay for that in the long run with less production and then requires more cleaning). I pointed out that for a measly 1300 they could have a very happy client. They did (do) not care. So now I have a bunch of flat less efficient panels that I can still see - just not as much. Will I use them for anything ever again - NO! Not even panel cleaning. I used Hot Purple for my first house and I wish I had used them for this one.
4.89 196 Reviews
itang, over 1 month
Thank you so much, I've been wanting solar panels for years but they were so cost prohibitive. I'm glad it's gotten a lot less expensive and that Sunwork nonprofit offers solar panels at a low cost for those who can qualify. Appreciate it!
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Average cost (5kW system)
$13,500 ($2.70 per watt)
itang, over 1 month
Thank you so much, I've been wanting solar panels for years but they were so cost prohibitive. I'm glad it's gotten a lot less expensive and that Sunwork nonprofit offers solar panels at a low cost for those who can qualify. Appreciate it!
4.84 196 Reviews
Randy, over 1 month
After considering many solar companies, I hired @stellarsolar to install my solar panels. My panels are working great and I couldn’t be happier with the performance as you can see below. If you are looking for solar on your home,I highly recommend Kenny Rutherford from @stellarsolar
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Randy, over 1 month
After considering many solar companies, I hired @stellarsolar to install my solar panels. My panels are working great and I couldn’t be happier with the performance as you can see below. If you are looking for solar on your home,I highly recommend Kenny Rutherford from @stellarsolar
4.79 78 Reviews
Arthur , over 1 month
Wanted to write this review to give anyone thinking of solar to absolutely go with Sol R US. From my first interactions with Daniel in sales, it was clear he was very knowledgeable and actually cared about the customer. His quote was significantly better than the competition and the install was clean and efficient. The actual owner was part of the installation team and was great to deal with. Overall, highly recommended!
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Average cost (5kW system)
$15,350 ($3.07 per watt)
Arthur , over 1 month
Wanted to write this review to give anyone thinking of solar to absolutely go with Sol R US. From my first interactions with Daniel in sales, it was clear he was very knowledgeable and actually cared about the customer. His quote was significantly better than the competition and the install was clean and efficient. The actual owner was part of the installation team and was great to deal with. Overall, highly recommended!
4.79 79 Reviews
Gnyan Rama, over 1 month
Want to thank Meo and his team that made the solar instal project a breeze for us. He was always well prepared , took care of all the permits and installed the solar unit in record time (few weeks from planning to install). Inspections took a bit longer because of the city backlog. Highly recommend the team as trusted solar installers
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Average cost (5kW system)
$14,900 ($2.98 per watt)
Gnyan Rama, over 1 month
Want to thank Meo and his team that made the solar instal project a breeze for us. He was always well prepared , took care of all the permits and installed the solar unit in record time (few weeks from planning to install). Inspections took a bit longer because of the city backlog. Highly recommend the team as trusted solar installers
4.77 87 Reviews
Ram, over 1 month
I strongly recommend excite energy for getting your solar system. They have been very helpful in answering all my concerns patiently and made sure all the processes are executed seamlessly. Colm, who installed the solar, did a very great job. He made sure he concealed the exterior/garage interior piping as much as possible and the job was done with minimal holes to the house. Special shoutout to Jonna/Arianna who helped me from getting all the paperwork/appointments from the start to the last hiccup of getting solar activated going through inspections and PG&E agreements.
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Average cost (5kW system)
$15,900 ($3.18 per watt)
Ram, over 1 month
I strongly recommend excite energy for getting your solar system. They have been very helpful in answering all my concerns patiently and made sure all the processes are executed seamlessly. Colm, who installed the solar, did a very great job. He made sure he concealed the exterior/garage interior piping as much as possible and the job was done with minimal holes to the house. Special shoutout to Jonna/Arianna who helped me from getting all the paperwork/appointments from the start to the last hiccup of getting solar activated going through inspections and PG&E agreements.
4.75 33 Reviews
Anonymous, over 1 month
SunGreen did a wonderful job setting me up with solar panels at my new home. I was able to create the kind of design I wanted. Once installed, their tech support (Benny) has been outstanding in helping me understand how I can monitor the energy I'm producing. SunGreen is great and I highly recommend them.<br /><br />Everyone who get's solar in LA should know that LADWP does not pay you for the excess solar energy you create and send to their grid. I am still happy with my investment in solar because I don't have an electric bill (just the $22 tax every billing cycle for being hooked up to the grid) and my property value increased with the installation.
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Average cost (5kW system)
$26,650 ($5.33 per watt)
Anonymous, over 1 month
SunGreen did a wonderful job setting me up with solar panels at my new home. I was able to create the kind of design I wanted. Once installed, their tech support (Benny) has been outstanding in helping me understand how I can monitor the energy I'm producing. SunGreen is great and I highly recommend them.<br /><br />Everyone who get's solar in LA should know that LADWP does not pay you for the excess solar energy you create and send to their grid. I am still happy with my investment in solar because I don't have an electric bill (just the $22 tax every billing cycle for being hooked up to the grid) and my property value increased with the installation.
4.73 67 Reviews
Alexa G, over 1 month
We inherited a solar system on a home we recently purchased. During escrow, the system faulted and no longer produced any power by the time we took occupancy. Suffice it to say, conversations were extremely difficult to coordinate among our home seller, real estate agents, the solar installer, the solar manufacturer, the battery installer, and the battery manufacturer. Enter Mike Curtis of Solar Symphony who took the time to not only educate me on solar power systems but also organized the conversations among the previously mentioned parties resulting in the work I needed to be covered by warranty and completed quickly by capable technician. Many thanks to Mike and everyone on the Solar Symphony team!
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Average cost (5kW system)
$19,250 ($3.85 per watt)
Alexa G, over 1 month
We inherited a solar system on a home we recently purchased. During escrow, the system faulted and no longer produced any power by the time we took occupancy. Suffice it to say, conversations were extremely difficult to coordinate among our home seller, real estate agents, the solar installer, the solar manufacturer, the battery installer, and the battery manufacturer. Enter Mike Curtis of Solar Symphony who took the time to not only educate me on solar power systems but also organized the conversations among the previously mentioned parties resulting in the work I needed to be covered by warranty and completed quickly by capable technician. Many thanks to Mike and everyone on the Solar Symphony team!
4.72 28 Reviews
Vikram K., over 1 month
I purchased my system through these guys with a battery back up. We want to make sure if the grid goes down that we have power to our freezer and fridge so our food doesn't spoil. The team at gim was helpful throughout the process and even helped fix my ac system when they were mounting the panels on my roof. I recommend this team for their experience in construction. Easy quote process and kept my informed entire time.
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Vikram K., over 1 month
I purchased my system through these guys with a battery back up. We want to make sure if the grid goes down that we have power to our freezer and fridge so our food doesn't spoil. The team at gim was helpful throughout the process and even helped fix my ac system when they were mounting the panels on my roof. I recommend this team for their experience in construction. Easy quote process and kept my informed entire time.
For more information about going solar near where you live, check out the following resources: