California solar incentives in 2026: what's left and what changed
The rules changed a lot in the past year. Here's a plain list of what applies to a California homeowner today, and what doesn't.
Federal residential clean energy credit (25D)
The 30% credit for homeowner-owned solar and batteries ended with the 2025 tax year. There is no phase-down. Systems installed in 2026 or later don't qualify.
Business credit for leases & PPAs (48E)
Solar companies that own the system on your roof can still claim a commercial credit on qualifying projects placed in service by the end of 2027. Some pass that through as lower monthly payments. Compare options.
SGIP battery rebates
The Self-Generation Incentive Program offers battery rebates, mainly to income-qualified households, homes in high fire-threat areas, and customers with medical needs. Funding moves in steps and some budgets run out, so we check current availability for you.
Solar property tax exclusion
California has long excluded the added value of a new solar system from property tax reassessment. It has been extended several times. We'll confirm current eligibility with your install date.
NEM 3.0 export rates
Under the Net Billing Tariff, your export credit schedule locks in for nine years based on the year you apply. A new schedule is expected for 2027 applicants.
Local & utility programs
Municipal utilities like SMUD and LADWP, and some cities and counties, run their own solar and battery rebates. CARE and FERA customers also pay a lower monthly base charge.
Why many families still come out ahead
Losing the federal credit raised the effective cost of an owned system by about 30%. Two things still work in a homeowner's favor:
- California rates are among the highest in the country. PG&E averaged about 39¢ per kWh in early 2026. Every kWh you make and use yourself saves that full amount.
- Batteries turn cheap exports into expensive savings. Storing midday solar for the evening is worth roughly ten times more than exporting it.
For a typical family with a $250+ monthly bill, a well-designed solar-plus-battery system often pays back in about 8 to 12 years and keeps saving for 25+. Try the calculator or read Is solar still worth it in California?
This page is general information, not tax advice. Incentive rules change and eligibility depends on your situation. Confirm with a qualified tax professional.
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