Summary of California solar incentives 2020
2020 has been a year of huge changes for residential solar energy programs in California.
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.
On this page, you can:
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Learn what solar incentives are available to California homeowners
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See what California solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or California solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in California
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.
The federal tax credit falls to 22% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 2022.
Net energy metering in California
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 near-full retail rate credit for the amount of electricity you send back into the grid with your solar panels. The reason why it’s near full retail rate credit instead of full retail rate credit for the electricity you send back to the grid is because California recently amended their NEM to NEM 2.0.
As part of that change, the energy you buy from your utility company comes with a small “non-bypassable charge” of 3 cents per kilowatt hour (kWh). Under NEM 2.0, you don’t get this same amount as credit when you send electricity back to the utility grid (Note, if you’re an LADWP customer, you still will get full retail NEM without this non-bypassable charge).
You’ll also need to sign up for a time-of-use billing plan (TOU), which has variable energy costs based on what time of day it is. Evening has the most demand, so your energy prices will be higher at this time.
While that may sound bad, you can do very well to offset TOU billing changes by installing a solar energy storage system. You can charge the battery during the middle of the day with your free solar electricity, and discharge in the evening, when purchasing from the grid would be more expensive.
With NEM, 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 at the end of the year, you pay for the balance.
Net metering in California can be extremely valuable over the life of your solar system. When paired with TOU billing and the ability to send power to the grid during off-peak hours, your savings are enhanced even further.
Luckily, your solar installer is a net metering expert. They will help you design a solar system to maximize your savings.
Learn more: Everything you need to know about California Net Metering 2.0 in 2020
California solar rebates
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.
California solar tax credit
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.
SGIP - California’s solar battery storage program
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.
The SGIP equity budget for home battery storage
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.
California solar incentives for low-income households
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 single-family affordable solar homes (SASH) program
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:
- You’re a Pacific Gas & Electric, Southern California Edison, or San Diego Gas & Electric customer
- You own and live in your home
- Have a household income that is 80% of or below the the area median income
- Live in a home that is considered to be “affordable housing” by the California Public Utility code.
To check if you live in one of the approved areas, explore this map.
The multi-family affordable solar homes (MASH) program
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:
- The multi-family residential building must be financed by one of the following:
- Low-income housing tax credits
- Tax-exempt mortgage revenue bonds
- General obligation bonds
- Some kind of local, state, or federal grants and loans
- If at least 20% of the total units are sold or rented to lower-income residents.
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.
Cost of solar panels in your part of California after all applicable solar incentives
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Prices based on a 7.7kW system, after 26% federal tax credit
Solar prices near you
Payback period
4.7-5.8 years
Net profit (savings less system cost)
$85,974-$105,079
Average size system installed in CA in 2020
7.7kW
Solar panel cost calculator
Best 10 solar companies in California
368 solar companies in California provide pricing on SolarReviews. Here are the best rated companies near you.
4.93 309 Reviews
Latest review
Pamela Cary , 1 week ago
Excellent service. Knowledgeable and very easy to work with. I would highly recommend Ruben Gamez, he is fabulous!
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Latest review
Pamela Cary , 1 week ago
Excellent service. Knowledgeable and very easy to work with. I would highly recommend Ruben Gamez, he is fabulous!
4.89 271 Reviews
Latest review
Justin de Castro, 4 weeks ago
We wish we could give you more than 5 stars! Larry was great and very informative from the get-go. He explained the process very well and answered all our questions promptly. All the technicians did a great job and were very professional and friendly. On top of that, Cosmic Solar gave us the best price compared to all its competitors. We would definitely recommend Cosmic Solar to all our friends and family. We won't look elsewhere when it comes to solar installation.
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Average cost (5kW system)
$19,300 ($3.86 per watt)
Latest review
Justin de Castro, 4 weeks ago
We wish we could give you more than 5 stars! Larry was great and very informative from the get-go. He explained the process very well and answered all our questions promptly. All the technicians did a great job and were very professional and friendly. On top of that, Cosmic Solar gave us the best price compared to all its competitors. We would definitely recommend Cosmic Solar to all our friends and family. We won't look elsewhere when it comes to solar installation.
4.89 195 Reviews
Latest review
Vijay L, over 1 month
SunWork is a not for profit organization, which has very few employees and rest of the (wo)man power comes as volunteers (like you and me), who get trained both in classroom/zoom and on-the-job. Great guys to work with and very friendly at every step of the process. Everyone I had a chance to work with are highly professional, flexible, spend time to explain all the questions I had. They are not only nice to the owners, they are also very nice to the volunteers. It's a Win-Win-Win.
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Average cost (5kW system)
$13,500 ($2.70 per watt)
Latest review
Vijay L, over 1 month
SunWork is a not for profit organization, which has very few employees and rest of the (wo)man power comes as volunteers (like you and me), who get trained both in classroom/zoom and on-the-job. Great guys to work with and very friendly at every step of the process. Everyone I had a chance to work with are highly professional, flexible, spend time to explain all the questions I had. They are not only nice to the owners, they are also very nice to the volunteers. It's a Win-Win-Win.
4.88 69 Reviews
Latest review
Pratik Shah, 3 weeks ago
I was not given a quote based on my past electric bills and was fare and reasonable. Other companies gave ridiculously high quotes for a system way above my requirement. My installer was Younes and he was very knowledgeable. Above all, he was helpful and nice to work with. Installation was completed on time and has great warranty on parts and labor. I would recommend Meo and Affordable Home Solar to all my friends and family.
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Average cost (5kW system)
$14,900 ($2.98 per watt)
Latest review
Pratik Shah, 3 weeks ago
I was not given a quote based on my past electric bills and was fare and reasonable. Other companies gave ridiculously high quotes for a system way above my requirement. My installer was Younes and he was very knowledgeable. Above all, he was helpful and nice to work with. Installation was completed on time and has great warranty on parts and labor. I would recommend Meo and Affordable Home Solar to all my friends and family.
4.83 50 Reviews
Latest review
Anonymous, over 1 month
My experience with Bland Solar was great. Start to finish they took care of business. I was actually becoming friends with the 2 installers but then they were done. I enjoyed them so much that I bought them treats for there drive to and from Bakersfield. Miss you guys. Thanks for the great work. Am getting excited about not paying PG&E any more money.
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Latest review
Anonymous, over 1 month
My experience with Bland Solar was great. Start to finish they took care of business. I was actually becoming friends with the 2 installers but then they were done. I enjoyed them so much that I bought them treats for there drive to and from Bakersfield. Miss you guys. Thanks for the great work. Am getting excited about not paying PG&E any more money.
4.82 226 Reviews
Latest review
Al L, over 1 month
I highly recommend Sunlux Solar. I contracted with Sunlux for 34 panels and a new roof a little over 3 months ago. I am extremely pleased with both my solar panel installation and my new roof. My salesperson (Chris) was very honest, informative and professional. There was no sales pressure at all. He explained the entire project in detail and satisfactorily answered all my questions. He was extremely patient with me when I called him numerous times with questions I had pertaining to my internet solar research I conducted as I was educating myself on solar. I got several quotes prior to choosing Sunlux. Although Sunlux was a little more expensive than others (not much), I chose Sunlux because of the professionalism Chris displayed and because they are a large professional company who is dedicated to customer service. I believe in "you get what you pay for" and I am extremely pleased with Sunlux, as I got much more than I paid for. I am very happy I chose them for my project. My project manager (Berlyn) was outstanding. She was constantly communicating with me by either phone, email or text. She kept me apprised of every step of the project and was always responsive to me whenever I called her. She always got back to me immediately. She was professional, polite, informative and defiantly dedicated to customer service. She always made sure I knew what was happening, kept me in the loop, and that I was pleased. It was a pleasure working with Berlyn. The project took a little over 3 months to complete, but that was due to permitting issues and not the fault of Sunlux. None the less, Berlyn was in constant contact with the building authorities and moved things right along. The installers were very professional, polite and defiantly demonstrated pride in their work. The installation was clean, seamless and it looks fantastic. All the electrical is hidden in my attic and out of sight (except for my inverter). My roofer was Troy Roofing who was subcontracted through Sulux. Although I am not a fan of subcontractors, Sunlux changed my opinion about subcontractors. They were in contact with the roofer the entire time and I never had to deal with the roofer directly. Troy Roofing did an exceptional job on my roof. The guys worked 3 hard long days in 100 degree weather. They demonstrated pride in their work and they did an excellent job. I highly recommend Troy Roofing. In summary, I am extremely pleased with Sunlux Solar and the outstanding job they did. They totally exceeded my expectations. I highly recommend them for your solar project. You will not regret it. I commend their staff Chris (my salesperson) for his professionalism and honestly. There were no surprises. Moreover, I commend Berlyn (my project manager) for commitment to customer service, her professionalism and her organizational skills. She was on top of my project every step of the way and she was a pleasure to work with. Al
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Average cost (5kW system)
$15,150 ($3.03 per watt)
Latest review
Al L, over 1 month
I highly recommend Sunlux Solar. I contracted with Sunlux for 34 panels and a new roof a little over 3 months ago. I am extremely pleased with both my solar panel installation and my new roof. My salesperson (Chris) was very honest, informative and professional. There was no sales pressure at all. He explained the entire project in detail and satisfactorily answered all my questions. He was extremely patient with me when I called him numerous times with questions I had pertaining to my internet solar research I conducted as I was educating myself on solar. I got several quotes prior to choosing Sunlux. Although Sunlux was a little more expensive than others (not much), I chose Sunlux because of the professionalism Chris displayed and because they are a large professional company who is dedicated to customer service. I believe in "you get what you pay for" and I am extremely pleased with Sunlux, as I got much more than I paid for. I am very happy I chose them for my project. My project manager (Berlyn) was outstanding. She was constantly communicating with me by either phone, email or text. She kept me apprised of every step of the project and was always responsive to me whenever I called her. She always got back to me immediately. She was professional, polite, informative and defiantly dedicated to customer service. She always made sure I knew what was happening, kept me in the loop, and that I was pleased. It was a pleasure working with Berlyn. The project took a little over 3 months to complete, but that was due to permitting issues and not the fault of Sunlux. None the less, Berlyn was in constant contact with the building authorities and moved things right along. The installers were very professional, polite and defiantly demonstrated pride in their work. The installation was clean, seamless and it looks fantastic. All the electrical is hidden in my attic and out of sight (except for my inverter). My roofer was Troy Roofing who was subcontracted through Sulux. Although I am not a fan of subcontractors, Sunlux changed my opinion about subcontractors. They were in contact with the roofer the entire time and I never had to deal with the roofer directly. Troy Roofing did an exceptional job on my roof. The guys worked 3 hard long days in 100 degree weather. They demonstrated pride in their work and they did an excellent job. I highly recommend Troy Roofing. In summary, I am extremely pleased with Sunlux Solar and the outstanding job they did. They totally exceeded my expectations. I highly recommend them for your solar project. You will not regret it. I commend their staff Chris (my salesperson) for his professionalism and honestly. There were no surprises. Moreover, I commend Berlyn (my project manager) for commitment to customer service, her professionalism and her organizational skills. She was on top of my project every step of the way and she was a pleasure to work with. Al
4.81 52 Reviews
Latest review
Robert, over 1 month
I had my solar panels installed in July. I’m very happy with the entire process from initial contact to installation and all the way through city inspection and getting PGE permission to operate (all handled by Sol R Us). Daniel was very patient and super responsive to my questions and requests all throughout. After comparing their proposal and speaking to several of their references, I decided to pick them out of a short list of 4 solar installation companies. It was an excellent decision as the installation went smoothly and Daniel always kept me informed of the progress. Eddie and his installation team were very professional. Chris was there as well, and informed me that he found some unrelated issue with a flashing on my roof (he showed me the picture he took) and just went ahead and corrected it. During this Covid period, the crew was very respectful of social distancing and wearing masks when interacting with me while working on my property. I highly recommend speaking to them if you are considering solar.
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Average cost (5kW system)
$15,350 ($3.07 per watt)
Latest review
Robert, over 1 month
I had my solar panels installed in July. I’m very happy with the entire process from initial contact to installation and all the way through city inspection and getting PGE permission to operate (all handled by Sol R Us). Daniel was very patient and super responsive to my questions and requests all throughout. After comparing their proposal and speaking to several of their references, I decided to pick them out of a short list of 4 solar installation companies. It was an excellent decision as the installation went smoothly and Daniel always kept me informed of the progress. Eddie and his installation team were very professional. Chris was there as well, and informed me that he found some unrelated issue with a flashing on my roof (he showed me the picture he took) and just went ahead and corrected it. During this Covid period, the crew was very respectful of social distancing and wearing masks when interacting with me while working on my property. I highly recommend speaking to them if you are considering solar.
4.78 31 Reviews
Latest review
Anonymous, over 1 month
Brent at The Solar Quote was super helpful throughout the process. I was never left wondering what was next. His knowledge was terrific. We are very happy with our new solar system!
Read more
Latest review
Anonymous, over 1 month
Brent at The Solar Quote was super helpful throughout the process. I was never left wondering what was next. His knowledge was terrific. We are very happy with our new solar system!
4.77 32 Reviews
Latest review
Devin Yu, over 1 month
My husband and I both heard about the terrible experiences going solar. But with our SCE bill hitting over $400 in the summer we figured the risk was worth the reward. We weren't sure who to ask with our questions so we contacted a few companies that had great reviews. After comparing all the various solar companies we opted for Forme Solar due to their warranty and experience with solar repair. Well, it was the best thing we ever did. Going solar has cut our utility bill to a fraction of what it once was and we have a pool and two AC units. The customer service and installation was fast and responsive. I am very pleased with our solar system and would get it installed again with Forme Solar.
Read more
Latest review
Devin Yu, over 1 month
My husband and I both heard about the terrible experiences going solar. But with our SCE bill hitting over $400 in the summer we figured the risk was worth the reward. We weren't sure who to ask with our questions so we contacted a few companies that had great reviews. After comparing all the various solar companies we opted for Forme Solar due to their warranty and experience with solar repair. Well, it was the best thing we ever did. Going solar has cut our utility bill to a fraction of what it once was and we have a pool and two AC units. The customer service and installation was fast and responsive. I am very pleased with our solar system and would get it installed again with Forme Solar.
4.75 33 Reviews
Latest review
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.
Read more
Average cost (5kW system)
$26,650 ($5.33 per watt)
Latest review
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.
Solar guides for your California city
For more information about going solar near where you live, check out the following resources:
Useful links
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