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
516 solar companies in California provide pricing on SolarReviews. Here are the best rated companies near you.
4.93 399 Reviews
Tony Carrillo, 1 week ago
I was so excited to buy my new house in the Cathedral City cove! After completing the never ending stack of Escrow documents I was finally into my new place. I then started getting the new home bills and new I needed to get solar on my house in order to reduce the outrageously high SCE bills. I contacted Renova and began working with Cory Hartman. He made the process of putting solar onto my house so easy and the documents he presented were easy to understand and the few questions I had were answered to satisfaction. The customer service received was absolutely stellar! This is the second home with Renova and both installs were seamless. -Tony C.
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Tony Carrillo, 1 week ago
I was so excited to buy my new house in the Cathedral City cove! After completing the never ending stack of Escrow documents I was finally into my new place. I then started getting the new home bills and new I needed to get solar on my house in order to reduce the outrageously high SCE bills. I contacted Renova and began working with Cory Hartman. He made the process of putting solar onto my house so easy and the documents he presented were easy to understand and the few questions I had were answered to satisfaction. The customer service received was absolutely stellar! This is the second home with Renova and both installs were seamless. -Tony C.
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!
4.89 196 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!
4.85 185 Reviews
Elina Guttmann, 2 days ago
Great experience working with Stellar Solar. Fast communication and the process was smooth and easy. Their team was on top of SDG&E to ensure our panels were switched on promptly and without delays. Highly recommend if you're on the market for solar panels!
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Elina Guttmann, 2 days ago
Great experience working with Stellar Solar. Fast communication and the process was smooth and easy. Their team was on top of SDG&E to ensure our panels were switched on promptly and without delays. Highly recommend if you're on the market for solar panels!
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!!!
4.79 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
4.78 73 Reviews
ted, over 1 month
I started my solar search at the start on March 1st, 2023. I wanted to get in on NEM2 as well as pay a fair price for a good system that met my current and future needs. I contacted Sol R Us along with other local installers and the big nationwide companies. I had 9 quotes of fairly similar systems but the prices varied greatly given the NEM2 rush. I went with Sol R Us because of the price, the equipment, working with their main sales contact Daniel as well as recommendations from others. Contract signed, PGE paperwork submitted, permit issued, install completed - 31 days from first contact. 2 weeks later city inspector came out and everything was good. I waited a few months to write this review to just make sure everything worked as expected and all is correct with my PGE billing. Everything is! 5 stars and would recommend Sol R Us.
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Average cost (5kW system)
$15,350 ($3.07 per watt)
ted, over 1 month
I started my solar search at the start on March 1st, 2023. I wanted to get in on NEM2 as well as pay a fair price for a good system that met my current and future needs. I contacted Sol R Us along with other local installers and the big nationwide companies. I had 9 quotes of fairly similar systems but the prices varied greatly given the NEM2 rush. I went with Sol R Us because of the price, the equipment, working with their main sales contact Daniel as well as recommendations from others. Contract signed, PGE paperwork submitted, permit issued, install completed - 31 days from first contact. 2 weeks later city inspector came out and everything was good. I waited a few months to write this review to just make sure everything worked as expected and all is correct with my PGE billing. Everything is! 5 stars and would recommend Sol R Us.
4.76 85 Reviews
Hampstead Way, 2 weeks ago
I am very happy with the service your company provided. The initial proposal was thorough, delivered to me in a timely way, and inspired confidence in the process. The installation was completed when promised. The work appears neat and carefully done. There have been no surprises.
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Average cost (5kW system)
$15,900 ($3.18 per watt)
Hampstead Way, 2 weeks ago
I am very happy with the service your company provided. The initial proposal was thorough, delivered to me in a timely way, and inspired confidence in the process. The installation was completed when promised. The work appears neat and carefully done. There have been no surprises.
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!
For more information about going solar near where you live, check out the following resources: