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.
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
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
activeBattery 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)
closingAdded value from active solar is excluded from property tax assessment.
- Amount: 100% of added value
- Ends: 2027-01-01
Credits & exemptions
State solar tax credit
NoNo statewide personal solar income tax credit.
Property tax exemption
YesActive 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
NoNo broad statewide residential solar sales tax exemption.
SREC market
NoneNo residential SREC market (RPS met via other mechanisms).
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)
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.
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
- SmartEnergyUSA — NEM 3.0 / Net Billing Tariff explained — SmartEnergyUSA (secondary, verified 2026-08-17)
- ElecGuys — SGIP + NEM 3.0 2026 — ElecGuys (secondary, verified 2026-08-17)
- DSIRE — California programs — DSIRE (NC Clean Energy Technology Center) (primary, verified 2026-08-17)
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.