Skip to content
Power·Done Better
Solar rules by state

Solar in California

Here's what generally applies to solar in California. This page is educational: Power Done Better installs in Southwest Florida, so for California we can point you toward what applies and, where we can, refer you to a trusted local pro.

Educational + referral only. Power Done Better installs in Southwest Florida. This page is educational information about solar rules in California — we don't provide local installation there, but we're happy to point you toward what applies and, where we can, refer you to a local resource.
Net metering

What you get for exported power

Policy type: Net billing (below-retail export credit) — varies by utility.

NEM 3.0 / Net Billing Tariff effective 2023-04-15. Exports are paid at Avoided Cost Calculator rates (averaging ~$0.08/kWh) instead of retail (~$0.30–0.35/kWh under NEM 2.0). Economics now favor battery + self-consumption.

Typical export credit
~$0.08/kWh (avoided cost)
Varies by utility
Yes
Incentives

Programs on the table

Program terms and budgets change — treat these as a starting point and confirm current status.

SGIP (Self-Generation Incentive Program) battery rebate

active

Battery storage rebates; highest tiers for low-income / high-fire-risk customers.

  • Amount: ~$150–$1,000/kWh depending on tier

Active Solar Energy System property tax exclusion (R&TC §73)

closing

Added value from active solar is excluded from property tax assessment.

  • Amount: 100% of added value
  • Ends: 2027-01-01
Taxes

Credits & exemptions

State solar tax credit

No

No statewide personal solar income tax credit.

Property tax exemption

Yes

Active solar excluded from assessment under Revenue & Taxation Code §73 — scheduled to sunset 2027-01-01 unless extended. Verify against current CA statute before quoting.

Sales tax exemption

No

No broad statewide residential solar sales tax exemption.

SREC market

None

No residential SREC market (RPS met via other mechanisms).

Utilities

Who most homeowners have here

Your exact terms depend on your utility — this is the shortlist most visitors fall under.

  • Pacific Gas & Electric (PG&E)
  • Southern California Edison (SCE)
  • San Diego Gas & Electric (SDG&E)
The bottom line

What this means for you

California pays much less for exported power than it used to (NEM 3.0), so the winning setup is solar + battery to use your own power. SGIP can offset battery cost, and the property-tax exclusion still applies — but it's scheduled to sunset 2027-01-01, so timing matters. There's no state tax credit or residential SREC market.

Before you decide

Read this the right way

Rules, rates, and incentives change and vary by utility — confirm current terms with your utility and a licensed installer before deciding. Any figures shown here are cited educational estimates, not a quote, and not a guarantee of savings or eligibility. Nationwide in 2026: the federal residential solar tax credit (IRC Section 25D, the 30% ITC) expired 12/31/2025, so a cash or loan purchase placed in service in 2026 gets $0 federal residential credit — there is no 2026 residential credit. Lease/PPA (third-party-owned) systems may still access the business credit (Section 48E) through 2027. This is general information, not tax, legal, or financial advice. Sources are listed below, last verified 2026-08-17.

Sources

Educational · Referral

We install in Southwest Florida

We don't install in California, so we won't pretend to be your local expert. If you're in California, use the sources on this page to check your utility and DSIRE — and if you want, we can point you toward a trusted local pro.