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.
2021 is shaping up to be a year of huge changes for residential solar energy programs in California. The state Public Utilities Commission is in the middle of making changes to net metering, 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. Those changes may 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
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% at the end of 2022.
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:
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 26% federal tax credit
509 solar companies in California provide pricing on SolarReviews. Here are the best rated companies near you.
4.93 392 Reviews
Happy with Solar in the Desert, 3 weeks ago
From start to finish, the company was responsive, knowledgeable, timely, and professional. All the staff were polite and professional. Matt (account manager) was especially great, ready to answer any questions and keep us updated on the entire process. No regrets. Excellent experience.
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Happy with Solar in the Desert, 3 weeks ago
From start to finish, the company was responsive, knowledgeable, timely, and professional. All the staff were polite and professional. Matt (account manager) was especially great, ready to answer any questions and keep us updated on the entire process. No regrets. Excellent experience.
4.89 277 Reviews
Chris, over 1 month
Cosmic Solar installed our solar panels in 2019 and since then we have been able to utilize our heater and air without paying huge amounts of money on our SDG&E bill. In fact, we usually get a credit each month. We were impressed with the installation and follow up of this company. I highly recommend them and will contact them for any future solar needs!
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Average cost (5kW system)
$19,300 ($3.86 per watt)
Chris, over 1 month
Cosmic Solar installed our solar panels in 2019 and since then we have been able to utilize our heater and air without paying huge amounts of money on our SDG&E bill. In fact, we usually get a credit each month. We were impressed with the installation and follow up of this company. I highly recommend them and will contact them for any future solar needs!
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!
4.85 121 Reviews
Andy Kobayashi , 2 weeks ago
My decision to go w/ KOTA, based out of Concord, CA, for my home solar system was based on great customer service; excellent product & warranties; & professional installation. My initial decision to go w/ KOTA started w/ Tyler Puhalovich, Solar Advisor. I was in the process of choosing a solar company. Tyler explained very clearly the economics of moving to Solar and the solar install process. He answered all my questions, and if he did not know, he would find out. A lot of other Solar rep’s didn’t do this. He was our main contact throughout the entire process. KOTA provides an excellent product and very robust warranties on all home solar equipment & installation. The solar panels are higher wattage output which means fewer panels on the roof. The workers that did the solar installation were professional and detail oriented. An example, is how they bent the wiring conduit to follow the contours. I was concerned how they would fasten the system to my roof. The technician showed me and explained how they anchor and seal the system on the roof. In conclusion, my experience w/ KOTA was excellent & I am very satisfied w/ my home Solar system.
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Andy Kobayashi , 2 weeks ago
My decision to go w/ KOTA, based out of Concord, CA, for my home solar system was based on great customer service; excellent product & warranties; & professional installation. My initial decision to go w/ KOTA started w/ Tyler Puhalovich, Solar Advisor. I was in the process of choosing a solar company. Tyler explained very clearly the economics of moving to Solar and the solar install process. He answered all my questions, and if he did not know, he would find out. A lot of other Solar rep’s didn’t do this. He was our main contact throughout the entire process. KOTA provides an excellent product and very robust warranties on all home solar equipment & installation. The solar panels are higher wattage output which means fewer panels on the roof. The workers that did the solar installation were professional and detail oriented. An example, is how they bent the wiring conduit to follow the contours. I was concerned how they would fasten the system to my roof. The technician showed me and explained how they anchor and seal the system on the roof. In conclusion, my experience w/ KOTA was excellent & I am very satisfied w/ my home Solar system.
4.84 76 Reviews
JC, over 1 month
Installation couldn’t have gone smoother. Our electrician (who is also a Tesla sub-contractor) recommended we work with Meo at Affordable Home Solar because of the great customer service and quick turnaround time. After a panel upgrade, Meo was able to get our permits, panels installed, inspected, and PGE approved within weeks. From the very beginning/design process, Meo guided us through the various panel brand options and micro-inverter choices while being very clear on the pros/cons, bang for your buck, etc…. He took care of all the permit paperwork and his crew installed 24 panels in less than a day while setting up all the online/app solar monitoring software. With lots of experience and customers in the Bay Area, he knew exactly what our city inspectors were looking for. The inspections were flawless - they were in and out in 10-15 min. Meo submitted our paperwork to pge and within a week our net metering started to show on our pge account. Most importantly, Meo and his team are just great people to work with, always responsive, and very professional. They stand behind their work and I would not hesitate to recommend them to anyone interested in installing solar.
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Average cost (5kW system)
$14,900 ($2.98 per watt)
JC, over 1 month
Installation couldn’t have gone smoother. Our electrician (who is also a Tesla sub-contractor) recommended we work with Meo at Affordable Home Solar because of the great customer service and quick turnaround time. After a panel upgrade, Meo was able to get our permits, panels installed, inspected, and PGE approved within weeks. From the very beginning/design process, Meo guided us through the various panel brand options and micro-inverter choices while being very clear on the pros/cons, bang for your buck, etc…. He took care of all the permit paperwork and his crew installed 24 panels in less than a day while setting up all the online/app solar monitoring software. With lots of experience and customers in the Bay Area, he knew exactly what our city inspectors were looking for. The inspections were flawless - they were in and out in 10-15 min. Meo submitted our paperwork to pge and within a week our net metering started to show on our pge account. Most importantly, Meo and his team are just great people to work with, always responsive, and very professional. They stand behind their work and I would not hesitate to recommend them to anyone interested in installing solar.
4.83 68 Reviews
Andrew, over 1 month
SOLRUS Engineering deserved to be acknowledged for the exceptional quality of work, excellent customer service, quick responsiveness on questions and shown positive attitude each time. I went through 7 companies and compared quotes before deciding to go with SOLRUS. There were a couple of companies that are cheaper, however the work is being subcontracted. Daniel (Sales consultant) is very pleasant to work with. He is very patient and responsive. Chris who I believe is the owner, always seem to be inspecting and ensuring the work are done properly by his team. They don’t do any short cut on installation. I was able to refer 3 of my friends and they were also very happy with SOLRUS. I truly recommend SOLRUS if you are planning to install Solar. The most important thing is that they truly care about the customer and provide quality work.
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Average cost (5kW system)
$15,350 ($3.07 per watt)
Andrew, over 1 month
SOLRUS Engineering deserved to be acknowledged for the exceptional quality of work, excellent customer service, quick responsiveness on questions and shown positive attitude each time. I went through 7 companies and compared quotes before deciding to go with SOLRUS. There were a couple of companies that are cheaper, however the work is being subcontracted. Daniel (Sales consultant) is very pleasant to work with. He is very patient and responsive. Chris who I believe is the owner, always seem to be inspecting and ensuring the work are done properly by his team. They don’t do any short cut on installation. I was able to refer 3 of my friends and they were also very happy with SOLRUS. I truly recommend SOLRUS if you are planning to install Solar. The most important thing is that they truly care about the customer and provide quality work.
4.82 107 Reviews
Edward Blum, 1 day ago
We had a great experience with Stellar Solar. We met with 6 or 7 reps from various solar companies and our rep, Connor, was by far the most professional. He walked us through all the pros and cons. He helped us make the best financial and long term decision (which was to purchase the panels), and he shepherded us through the entire process. The panels were put up quickly. They look great. And most important, our electric bill went from like $400 a month to $50. We save so much and don't stress about running the AC. Only once did we have tech questions and everyone was super helpful. A technician came out within the week, examined everything, and explained how the system was functioning (basically less sunlight means less energy, I felt like a genius :)). For a large investment, we feel GREAT about going with Stellar Solar.
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Edward Blum, 1 day ago
We had a great experience with Stellar Solar. We met with 6 or 7 reps from various solar companies and our rep, Connor, was by far the most professional. He walked us through all the pros and cons. He helped us make the best financial and long term decision (which was to purchase the panels), and he shepherded us through the entire process. The panels were put up quickly. They look great. And most important, our electric bill went from like $400 a month to $50. We save so much and don't stress about running the AC. Only once did we have tech questions and everyone was super helpful. A technician came out within the week, examined everything, and explained how the system was functioning (basically less sunlight means less energy, I felt like a genius :)). For a large investment, we feel GREAT about going with Stellar Solar.
4.80 33 Reviews
Dan H, 1 day ago
Not being someone who jumps right into something, I did extensive research on various systems and companies to work with on my Solar project. When I finished my research I felt that Green Home Systems was the best fit. They had had better equipment. Explained the entire process that the project would take. Answered all of my questions and made sure that I understood everything that would happen until my system was turned on. So for me Value, Knowledge, Communications, Top of the Line Systems the choice was pretty simple.
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Dan H, 1 day ago
Not being someone who jumps right into something, I did extensive research on various systems and companies to work with on my Solar project. When I finished my research I felt that Green Home Systems was the best fit. They had had better equipment. Explained the entire process that the project would take. Answered all of my questions and made sure that I understood everything that would happen until my system was turned on. So for me Value, Knowledge, Communications, Top of the Line Systems the choice was pretty simple.
4.79 66 Reviews
Anonymous, over 1 month
As having solar system installed is a 20 years commitment, I spoke to 5 solar companies not just to compare the price but most importantly to see cross reference the information they provided.<br /><br />What I found out, sales reps mostly reply on the computer program generated quote. Interestingly, after analyzing the same PG&E electricity usage history, some quoted me 7.6kw and some quoted me 5.8kw system. That is a huge difference that I definitely would love to sort out why. Most sales rep will cite that is how their software calculates, some said that is based upon system needs to cover 100% PG&E usage. Only Ali from Highligh Solar clearly explained how PG&E Net Metering works, and made clear sense the system size he recommended.<br /><br />The most amazing about Ali is that any question I came up with, e.g. what is the back feed of my main panel, he can get me the right answer right away even after 6 weeks of his visit, with picture of my panel attached. <br /><br />Once the decision is made, Ali walked me through the proposal and contract review, and Dean, the owner, was also very accommodating to accept some revisions I requested.. <br /><br />Then Jesse helped with permits and project management, Sam helped with monitoring and PG&E application, plus the professional installation team who made the whole process as smooth as it gets.<br /><br />2 days after installation, I reported weird system reading from Solar Edge mobile app, Dean and Sam called Solar Edge and confirmed they need to replace the inverter, which then got scheduled and done in less than 2 days by next available technician.<br /><br />In the end, Dean also personally helped me understand Solar Edge monitor reading, and answer many solar production related questions!!!<br /><br />All in all, I highly recommend Highlight Solar for their well rounded professional team!!!!!! Their service deserved 6 stars!!!
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Average cost (5kW system)
$19,550 ($3.91 per watt)
Anonymous, over 1 month
As having solar system installed is a 20 years commitment, I spoke to 5 solar companies not just to compare the price but most importantly to see cross reference the information they provided.<br /><br />What I found out, sales reps mostly reply on the computer program generated quote. Interestingly, after analyzing the same PG&E electricity usage history, some quoted me 7.6kw and some quoted me 5.8kw system. That is a huge difference that I definitely would love to sort out why. Most sales rep will cite that is how their software calculates, some said that is based upon system needs to cover 100% PG&E usage. Only Ali from Highligh Solar clearly explained how PG&E Net Metering works, and made clear sense the system size he recommended.<br /><br />The most amazing about Ali is that any question I came up with, e.g. what is the back feed of my main panel, he can get me the right answer right away even after 6 weeks of his visit, with picture of my panel attached. <br /><br />Once the decision is made, Ali walked me through the proposal and contract review, and Dean, the owner, was also very accommodating to accept some revisions I requested.. <br /><br />Then Jesse helped with permits and project management, Sam helped with monitoring and PG&E application, plus the professional installation team who made the whole process as smooth as it gets.<br /><br />2 days after installation, I reported weird system reading from Solar Edge mobile app, Dean and Sam called Solar Edge and confirmed they need to replace the inverter, which then got scheduled and done in less than 2 days by next available technician.<br /><br />In the end, Dean also personally helped me understand Solar Edge monitor reading, and answer many solar production related questions!!!<br /><br />All in all, I highly recommend Highlight Solar for their well rounded professional team!!!!!! Their service deserved 6 stars!!!
4.78 34 Reviews
Raj, over 1 month
For the past month, I've been recommending Amerigreen to anyone that brings up an interest in solar. I'm extremely happy with how everything turned out. I met with 8 installers, scoured numerous online forums for months, and did a ton of research. It was a daunting task, but in the end, nobody checked all of the boxes like Amerigreen. They offered the best product, value, and professionalism. Guy was the second installer I met with so going through 6 additional quotes took some time on my end. He was never annoying or created a false sense of urgency, which is a major pet peeve. I appreciated his patience and thorough answers to all of my questions. We financed through AG as well. They offered various options and we easily found something that worked for us. I even shopped around and the best financing terms I found, matched what AG was offering. Once the paperwork was signed, their project manager, Rose, was extremely communicative and helpful. Besides needing to move install dates due to the rain, everything flowed smoothly and was right on schedule from Amerigreen's part. The icing on the cake was when the DWP tech came out to install the new meter and commented on how good the electrical work looked and that whoever did the work, did a really good job.
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Raj, over 1 month
For the past month, I've been recommending Amerigreen to anyone that brings up an interest in solar. I'm extremely happy with how everything turned out. I met with 8 installers, scoured numerous online forums for months, and did a ton of research. It was a daunting task, but in the end, nobody checked all of the boxes like Amerigreen. They offered the best product, value, and professionalism. Guy was the second installer I met with so going through 6 additional quotes took some time on my end. He was never annoying or created a false sense of urgency, which is a major pet peeve. I appreciated his patience and thorough answers to all of my questions. We financed through AG as well. They offered various options and we easily found something that worked for us. I even shopped around and the best financing terms I found, matched what AG was offering. Once the paperwork was signed, their project manager, Rose, was extremely communicative and helpful. Besides needing to move install dates due to the rain, everything flowed smoothly and was right on schedule from Amerigreen's part. The icing on the cake was when the DWP tech came out to install the new meter and commented on how good the electrical work looked and that whoever did the work, did a really good job.
For more information about going solar near where you live, check out the following resources: