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
510 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, over 1 month
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, over 1 month
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.
4.89 278 Reviews
Jerry Peterson, 1 week ago
Cosmic Solar was referred by a friend and we couldn't be happier. The install crew went above and beyond...on time and friendly! Can't wait to start saving on our electric bill.
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Average cost (5kW system)
$19,300 ($3.86 per watt)
Jerry Peterson, 1 week ago
Cosmic Solar was referred by a friend and we couldn't be happier. The install crew went above and beyond...on time and friendly! Can't wait to start saving on our electric bill.
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 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.
4.83 117 Reviews
Tracy H, 2 days ago
Stellar Solar was with us every step of the process when it came to getting solar panels for our house. From the initial step of getting a quote to the final step of turning on our solar panels, Stellar Solar was informative, responsive, and genuine. The process was efficient and easy! I was thoroughly impressed with their amazing customer service and with how quickly they got the job done! Considering that there has been a supply chain shortage and materials were in high demand, Stellar Solar still offered competitive pricing. We were referred by a family member and I couldn't have been happier to work with Connor and his team. I would highly recommend Stellar Solar to anyone looking to get solar. I've been on a home improvement spree since retirement, so I've done my due diligence when it comes to researching a company to work with. Stellar Solar left a lasting impression for me to recommend them to anyone who asks without sparing any details. Also, solar panels are truly a great investment, especially living in San Diego when it's sunny year round, it honestly pays for itself with the money you save on the electricity bill!
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Tracy H, 2 days ago
Stellar Solar was with us every step of the process when it came to getting solar panels for our house. From the initial step of getting a quote to the final step of turning on our solar panels, Stellar Solar was informative, responsive, and genuine. The process was efficient and easy! I was thoroughly impressed with their amazing customer service and with how quickly they got the job done! Considering that there has been a supply chain shortage and materials were in high demand, Stellar Solar still offered competitive pricing. We were referred by a family member and I couldn't have been happier to work with Connor and his team. I would highly recommend Stellar Solar to anyone looking to get solar. I've been on a home improvement spree since retirement, so I've done my due diligence when it comes to researching a company to work with. Stellar Solar left a lasting impression for me to recommend them to anyone who asks without sparing any details. Also, solar panels are truly a great investment, especially living in San Diego when it's sunny year round, it honestly pays for itself with the money you save on the electricity bill!
4.82 136 Reviews
Kao , 4 days ago
KOTA claim to offer "highest level of installation quality in the industry" "Transparency and communication every step of the way" "staff who care" "reliability you can count on" "always work harder to achieve perfection", all of that was from the mission statement in the contract you signed. The quality of the installation was substandard, the installer didn't care to measure, they kept screwing in studs until they hit a rafter, some studs blown out the side of the rafter, and the studs that missed the rafters they just removed the stud and patched it with silicone. Trash, nails, and electrical equipment were left on the roof. One of the tiles was crack (but was repaired during inspection). When I brought up the poor workmanship and showed the photos to the project manager (Justus Berg), I ask if I could recoup a portion of the installation cost due to the poor workmanship, he promised to make things right and would get back to me. While I wait for the project manager to get back to me in regards to the poor workmanship. I asked when would they install critter guard and paint the conduits, which was promised to me by the salesman and also the installation team and their inspector confirm that they'll have someone take care of it before everything is finalized. When I asked the project manager told me they would paint the conduits only and the critter guards was not a default with KOTA's installation and he refused to authorize them. I was shocked; you would think the project manager would attempt to show some good will by following through with the critter guard. He said, I was either confused or misunderstood the salesman, installation team, and the inspector in regards to critter guards. A week later, I ask the project manager when the conduits will get painted; he then told me they would be happy to paint it if I buy the paint. At this point the project management is being difficult to work with and just vindictive. I gave up; it was impossible dealing with this kind of a human being. A few weeks goes by, I got a call from the project manager, he inform me that they finalized everything and I was going online and will be connected to PG&E. He apologized for the poor quality installation, and now he is willing to install the critter guard and paint the conduit. At that point I already had the critter guard installed and just needed the conduits painted. It was a nightmare dealing with the project manager and this company. I hope others can learn from my mistake and steer clear of this company. If you're brave enough to do business with this company make sure you have everything in writing.
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Kao , 4 days ago
KOTA claim to offer "highest level of installation quality in the industry" "Transparency and communication every step of the way" "staff who care" "reliability you can count on" "always work harder to achieve perfection", all of that was from the mission statement in the contract you signed. The quality of the installation was substandard, the installer didn't care to measure, they kept screwing in studs until they hit a rafter, some studs blown out the side of the rafter, and the studs that missed the rafters they just removed the stud and patched it with silicone. Trash, nails, and electrical equipment were left on the roof. One of the tiles was crack (but was repaired during inspection). When I brought up the poor workmanship and showed the photos to the project manager (Justus Berg), I ask if I could recoup a portion of the installation cost due to the poor workmanship, he promised to make things right and would get back to me. While I wait for the project manager to get back to me in regards to the poor workmanship. I asked when would they install critter guard and paint the conduits, which was promised to me by the salesman and also the installation team and their inspector confirm that they'll have someone take care of it before everything is finalized. When I asked the project manager told me they would paint the conduits only and the critter guards was not a default with KOTA's installation and he refused to authorize them. I was shocked; you would think the project manager would attempt to show some good will by following through with the critter guard. He said, I was either confused or misunderstood the salesman, installation team, and the inspector in regards to critter guards. A week later, I ask the project manager when the conduits will get painted; he then told me they would be happy to paint it if I buy the paint. At this point the project management is being difficult to work with and just vindictive. I gave up; it was impossible dealing with this kind of a human being. A few weeks goes by, I got a call from the project manager, he inform me that they finalized everything and I was going online and will be connected to PG&E. He apologized for the poor quality installation, and now he is willing to install the critter guard and paint the conduit. At that point I already had the critter guard installed and just needed the conduits painted. It was a nightmare dealing with the project manager and this company. I hope others can learn from my mistake and steer clear of this company. If you're brave enough to do business with this company make sure you have everything in writing.
4.80 69 Reviews
Paul, 4 weeks ago
I contacted SolRUs due to a referral from a friend. I contacted the sales team on May 11th. They asked me for information on current energy usage, which I supplied. A few days later, Chris, the owner, came to my house to inspect the roof and my electrical setup. We discussed the project and he was up-front with answers to all of my questions. They gave me a quote on May 20. The only downfall is that they only install Panasonic or LG branded panels. As those are more expensive panels, their quote was slightly above other quotes. Chris said they are currently booked for installs for 30 days, so they scheduled my install for June 27th. But on June 3rd, they called me and said they had a cancellation on Monday, June 6th. They asked if I was ok with them doing the install on June 6th. I was ok with that. The team arrived at about 8:05am. Everyone on the team was friendly. Chris, the owner, came by around 10am to make sure everything was going well and asked if I had any questions. They completed the install by 1pm. The entire job was done professionally and efficiently. The next day, I received emails with information about the 25-year warranties on all of the products that they installed. I got a call from Daniel from the sales team. He asked how everything went. He set me up with the APP that is used to monitor the panels. He has scheduled the city inspection for tomorrow. As soon as that is complete, they submit the paperwork to get net-metering completed with our electric utility, which may take 2-3 weeks. I am VERY happy with how the project was completed - from beginning to end. In less than a month from my initial contact with SolRUs, I'm up and running on solar power. I didn't have to deal with anything. They took care of permits and inspections. They will submit the paperwork needed with my electrical utility. I would highly recommend SolRUs to anyone.
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Average cost (5kW system)
$15,350 ($3.07 per watt)
Paul, 4 weeks ago
I contacted SolRUs due to a referral from a friend. I contacted the sales team on May 11th. They asked me for information on current energy usage, which I supplied. A few days later, Chris, the owner, came to my house to inspect the roof and my electrical setup. We discussed the project and he was up-front with answers to all of my questions. They gave me a quote on May 20. The only downfall is that they only install Panasonic or LG branded panels. As those are more expensive panels, their quote was slightly above other quotes. Chris said they are currently booked for installs for 30 days, so they scheduled my install for June 27th. But on June 3rd, they called me and said they had a cancellation on Monday, June 6th. They asked if I was ok with them doing the install on June 6th. I was ok with that. The team arrived at about 8:05am. Everyone on the team was friendly. Chris, the owner, came by around 10am to make sure everything was going well and asked if I had any questions. They completed the install by 1pm. The entire job was done professionally and efficiently. The next day, I received emails with information about the 25-year warranties on all of the products that they installed. I got a call from Daniel from the sales team. He asked how everything went. He set me up with the APP that is used to monitor the panels. He has scheduled the city inspection for tomorrow. As soon as that is complete, they submit the paperwork to get net-metering completed with our electric utility, which may take 2-3 weeks. I am VERY happy with how the project was completed - from beginning to end. In less than a month from my initial contact with SolRUs, I'm up and running on solar power. I didn't have to deal with anything. They took care of permits and inspections. They will submit the paperwork needed with my electrical utility. I would highly recommend SolRUs to anyone.
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 58 Reviews
Otto Vega, 19 hours ago
Here we go: 1.The original project manager assigned to me never reached out, and a new one had to be assigned after I reached out(Tim Barut) salesman was Harold Shields. 2. Installer didn't show up to do the site evaluation and I never received an update. I had to call to reschedule. 3. Installer took weeks to show up to do the installation after the panels were sitting for weeks in my garage. Had to reschedule two times and there was only one person installing the panels making the install process take weeks, only to be failed when doing the final inspection, and another reschedule was needed. 4.I was told I would not see the first bill on my solar loan until 2 months after installation. It's only been a few weeks since the installer passed the final inspection, and I'm getting my first solar bill along with a utility bill because my system is as of this moment still waiting for permission to operate. 5. I have tried reaching out to Tim and Harold over the past few days and I have not received a call back, it's the end of the day and I'm now writing this review. TLDR: Terrible communication, taking so long I now have a solar bill and a utility bill due in the same month. Highly discourage going with GHS.
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Otto Vega, 19 hours ago
Here we go: 1.The original project manager assigned to me never reached out, and a new one had to be assigned after I reached out(Tim Barut) salesman was Harold Shields. 2. Installer didn't show up to do the site evaluation and I never received an update. I had to call to reschedule. 3. Installer took weeks to show up to do the installation after the panels were sitting for weeks in my garage. Had to reschedule two times and there was only one person installing the panels making the install process take weeks, only to be failed when doing the final inspection, and another reschedule was needed. 4.I was told I would not see the first bill on my solar loan until 2 months after installation. It's only been a few weeks since the installer passed the final inspection, and I'm getting my first solar bill along with a utility bill because my system is as of this moment still waiting for permission to operate. 5. I have tried reaching out to Tim and Harold over the past few days and I have not received a call back, it's the end of the day and I'm now writing this review. TLDR: Terrible communication, taking so long I now have a solar bill and a utility bill due in the same month. Highly discourage going with GHS.
4.79 67 Reviews
Maria Rodriguez, 1 week ago
This company was very good to work with they provided us with a good deal. We had 35 panels installed in just 1 day! They took care of all of the city inspection approval process. I recommend them 100%
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Average cost (5kW system)
$14,750 ($2.95 per watt)
Maria Rodriguez, 1 week ago
This company was very good to work with they provided us with a good deal. We had 35 panels installed in just 1 day! They took care of all of the city inspection approval process. I recommend them 100%
For more information about going solar near where you live, check out the following resources: