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
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 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 30% federal tax credit
519 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.
4.90 280 Reviews
Scott, 1 day ago
What a great solar company! Starting with the Senior Energy Consultant / Ken very professional, on time and walked the talk. Roofing Manager / Ron also was very professional and helpful coming up with a solution for a part of my re-roof project. Office Staff / Mary and Arlene outstanding customer service and very attentive. Being in the construction trades myself for over 40 years I've work with many tradesmen and I have to say that both the roofers and solar system crews were top notch, left the site clean each day and installed all products in a professional manner. I would / and have recommended Cosmic Solar and Roofing to many of family members and friends. Thanks for an outstanding install and experience . Scott F.
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Average cost (5kW system)
$19,300 ($3.86 per watt)
Scott, 1 day ago
What a great solar company! Starting with the Senior Energy Consultant / Ken very professional, on time and walked the talk. Roofing Manager / Ron also was very professional and helpful coming up with a solution for a part of my re-roof project. Office Staff / Mary and Arlene outstanding customer service and very attentive. Being in the construction trades myself for over 40 years I've work with many tradesmen and I have to say that both the roofers and solar system crews were top notch, left the site clean each day and installed all products in a professional manner. I would / and have recommended Cosmic Solar and Roofing to many of family members and friends. Thanks for an outstanding install and experience . Scott F.
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!
4.85 135 Reviews
Gene Eng, 2 weeks ago
From start to finish the Stellar team was great to work with. I was impressed that the installation team painted the conduit to match the color of the stucco on my home. That attention to detail is what makes for a great customer experience.
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Gene Eng, 2 weeks ago
From start to finish the Stellar team was great to work with. I was impressed that the installation team painted the conduit to match the color of the stucco on my home. That attention to detail is what makes for a great customer experience.
4.80 77 Reviews
Gene , over 1 month
Professional Workmanship and Design. Excellent Customer Service. Top tier components. Expedient timelines. Very Affordable pricing. Meo Nguyen and Affordable Home Solar offer the best value in the SF Bay Area. Highly Recommend!!
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Average cost (5kW system)
$14,900 ($2.98 per watt)
Gene , over 1 month
Professional Workmanship and Design. Excellent Customer Service. Top tier components. Expedient timelines. Very Affordable pricing. Meo Nguyen and Affordable Home Solar offer the best value in the SF Bay Area. Highly Recommend!!
4.80 69 Reviews
Paul, over 1 month
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, over 1 month
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!!!
4.78 69 Reviews
Eric, 1 day ago
We contracted with Mynt Solar to install an 8 kW rooftop solar system and had a great experience with them start to finish. Their sales team was very informative and professional. They have flat pricing, which makes things very straightforward, and they took the time to answer all my questions and make sure we were making the right investment for our needs. I also really appreciated that they were very objective and weren't trying to sway us into using them by badmouthing their competitors - I can't say as much for a few of their competitors... Another thing that pushed us over the edge to use Mynt Solar was their assurance that they could get the system installed relatively quickly to ensure that we could take advantage of the tax credit on this year's filing. They absolutely delivered on that. After we'd signed the contract, we were assigned a project manager who did an excellent job of keeping everything moving along and keeping us apprised of the status. The only significant amount of time spent waiting during the process was always while waiting for the city/power company to come out and do their next step. Mynt made sure to submit all the applications very promptly and to have the installation scheduled such that everything just moved along as quickly as the approvals came through. Only time will tell, but given their business model, I'm also very optimistic that they'll be around for a good long time to provide their advertised warranty service should we ever need it. I can wholeheartedly recommend them if you are looking for solar or roofing services.
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Average cost (5kW system)
$14,750 ($2.95 per watt)
Eric, 1 day ago
We contracted with Mynt Solar to install an 8 kW rooftop solar system and had a great experience with them start to finish. Their sales team was very informative and professional. They have flat pricing, which makes things very straightforward, and they took the time to answer all my questions and make sure we were making the right investment for our needs. I also really appreciated that they were very objective and weren't trying to sway us into using them by badmouthing their competitors - I can't say as much for a few of their competitors... Another thing that pushed us over the edge to use Mynt Solar was their assurance that they could get the system installed relatively quickly to ensure that we could take advantage of the tax credit on this year's filing. They absolutely delivered on that. After we'd signed the contract, we were assigned a project manager who did an excellent job of keeping everything moving along and keeping us apprised of the status. The only significant amount of time spent waiting during the process was always while waiting for the city/power company to come out and do their next step. Mynt made sure to submit all the applications very promptly and to have the installation scheduled such that everything just moved along as quickly as the approvals came through. Only time will tell, but given their business model, I'm also very optimistic that they'll be around for a good long time to provide their advertised warranty service should we ever need it. I can wholeheartedly recommend them if you are looking for solar or roofing services.
4.78 38 Reviews
JB, over 1 month
Highly recommended! The team is great! I was extremely happy with the communication from the AmeriGreen team! -From the beginning, it was a NO pressure sale; the team took the time to educate me on "why solar" and the benefits I should expect. -Once I picked the right system, the ball started to roll, and the contracting team was just as professional! They answer all of my questions! Even the little things, Like asking me if I would like them to spray paint the metal piping on the walls to match the house. - I didn't even think about that! Thank you!! - Communication from the project manager Rose was great! she was on top of her game. The best part is there was no fluff... if she didn't know the answer, she said let me get back to you, and within 24 hours had an answer! I think that is HUGe because it seems like if someone doesn't have an answer nowadays, they just make it up... Not from AmeriGreen, They were extremely honest and, again, amazing with communication! Thank you again, team! The solar works and looks great on my house!!
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JB, over 1 month
Highly recommended! The team is great! I was extremely happy with the communication from the AmeriGreen team! -From the beginning, it was a NO pressure sale; the team took the time to educate me on "why solar" and the benefits I should expect. -Once I picked the right system, the ball started to roll, and the contracting team was just as professional! They answer all of my questions! Even the little things, Like asking me if I would like them to spray paint the metal piping on the walls to match the house. - I didn't even think about that! Thank you!! - Communication from the project manager Rose was great! she was on top of her game. The best part is there was no fluff... if she didn't know the answer, she said let me get back to you, and within 24 hours had an answer! I think that is HUGe because it seems like if someone doesn't have an answer nowadays, they just make it up... Not from AmeriGreen, They were extremely honest and, again, amazing with communication! Thank you again, team! The solar works and looks great on my house!!
4.77 164 Reviews
Bill Dam, 6 days ago
I had my solar system installed by KOTA recently. They checked off every single box: sales rep, installers and installation quality, price, responsiveness, warranties, product and equipment, customer service.. 10/10 for everything!!! I am very happy with everything from beginning to end. The sales rep, Lauren Bouskila, came to my door about a month ago. At first, I was very skeptical because my bill was pretty low. Lauren was able to show me the value of solar and still manage to bring my monthly payments to a price that is less than what I pay for electricity today, and I am getting 2x as much power as I use today, AND they installed a charger for my Tesla that arrived this week. Lauren explained every step of the process to me. She made it to where I didn't even have to lift a finger! Her knowledge of solar and everything she did to understand my needs and make sure my system was tailored exactly to the needs of my house gave me confidence every step of the way. She never came to my house empty handed, always had thoughtful and meaningful gifts with her. The price was also EXCELLENT. It was the best price of all bids I got. I have been impressed with Kota every step of the way. The technicians and installers were also a pleasure to work with. They did my whole installation in half a day and were very hardworking men. I would HIGHLY recommend KOTA Solar and the sales rep Lauren Bouskila to anyone considering solar for their home.
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Bill Dam, 6 days ago
I had my solar system installed by KOTA recently. They checked off every single box: sales rep, installers and installation quality, price, responsiveness, warranties, product and equipment, customer service.. 10/10 for everything!!! I am very happy with everything from beginning to end. The sales rep, Lauren Bouskila, came to my door about a month ago. At first, I was very skeptical because my bill was pretty low. Lauren was able to show me the value of solar and still manage to bring my monthly payments to a price that is less than what I pay for electricity today, and I am getting 2x as much power as I use today, AND they installed a charger for my Tesla that arrived this week. Lauren explained every step of the process to me. She made it to where I didn't even have to lift a finger! Her knowledge of solar and everything she did to understand my needs and make sure my system was tailored exactly to the needs of my house gave me confidence every step of the way. She never came to my house empty handed, always had thoughtful and meaningful gifts with her. The price was also EXCELLENT. It was the best price of all bids I got. I have been impressed with Kota every step of the way. The technicians and installers were also a pleasure to work with. They did my whole installation in half a day and were very hardworking men. I would HIGHLY recommend KOTA Solar and the sales rep Lauren Bouskila to anyone considering solar for their home.
For more information about going solar near where you live, check out the following resources: