Reviewed as of April 25, 2026. Program budgets, tariff vintages, and court filings referenced below all carry official sources you can re-check before acting.
PG&E and SCE customers share most of the same programs. SDG&E customers are on the same Net Billing Tariff but miss one export-rate boost that the others receive. SMUD runs its own Sacramento-area programs entirely outside CPUC jurisdiction. LADWP still offers something most Californians lost years ago: retail-rate net metering credits that do not expire.
This guide breaks down what’s available in 2026 by utility, by financing method, and by income and location eligibility, so you can see which programs actually apply to your household before you sign anything.
Find out what California programs are available to you!
What Changed For California Solar Incentives In 2026
Four developments in late 2025 and early 2026 reshaped the incentive landscape in California.
SGIP Ratepayer Tiers Closed (December 30, 2025): CPUC Decision 25-12-003 closed the General Market, Equity, and Equity Resiliency tiers of the Self-Generation Incentive Program to new applications.
The AB 209 RSSE tier is the only residential SGIP pathway still open, and most of its sub-budgets are waitlisted.
The 30% Federal Tax Credit Expired (January 1, 2026): The One Big Beautiful Bill Act, signed July 4, 2025, repealed Section 25D for any system placed in service after December 31, 2025. If you’re buying solar with cash or a loan in 2026, there is no federal credit to claim.
Lease and PPA systems can still access the Section 48E commercial credit through the installer.
NEM 3.0 Affirmed on Appeal (March 9, 2026): The California Court of Appeal upheld the CPUC’s 2022 Net Billing Tariff decision in Center for Biological Diversity v. CPUC, removing the last realistic path to reinstating retail-rate net metering for PG&E, SCE, and SDG&E customers.
Export credits stay at roughly four to eight cents per kWh versus retail rates of thirty to thirty-five cents, which is what makes battery storage central to NBT economics.
DAC-SASH Funding Source Transitions (July 1, 2026): The Disadvantaged Communities Single-Family Solar Homes program stays open, but its funding shifts from greenhouse gas allowance revenues to Public Purpose Program surcharges.
GRID Alternatives continues intake without a gap, but any claim made close to the handoff is worth verifying on the GRID Alternatives DAC-SASH page before committing.
Who Qualifies For California Solar Incentives In 2026
Three factors decide which incentives and programs are on your list:
Which utility runs your meter. PG&E, SCE, and SDG&E operate under CPUC rules and share one program set. SMUD (Sacramento County) and LADWP (Los Angeles) are outside CPUC jurisdiction and run their own operations. Smaller municipal utilities follow their own rebate schedules or offer none at all.
How you pay for the system. A cash or loan purchase puts the system in your name, which makes you the taxpayer for federal credit purposes. A lease or PPA puts the system in the installer’s name. They claim the federal credit and are expected to pass the value back to you through a lower monthly payment.
Your income and location. A handful of the highest-value programs, such as DAC-SASH and SGIP RSSE, require some combination of income at or below 80% AMI, CARE or FERA enrollment, or residence in a Disadvantaged Community census tract. If you don’t meet those gates, those programs aren’t part of your stack.
California Solar Incentives (At A Glance)
Not every incentive in the table below will apply to your household. Eligibility is primarily shaped by which utility runs your meter, whether you buy or lease the system, and whether you meet income or location qualifications for the equity-focused programs.
| Incentive | Details |
|---|---|
| Federal Residential Tax Credit (§25D) | Repealed as of January 1, 2026, under the One Big Beautiful Bill Act. The 30% credit no longer applies to any system placed in service after December 31, 2025. Homeowners with unused credits from pre-2026 installs can still carry them forward against future tax liability. |
| Federal Commercial Tax Credit (§48E) | Available only to the company that owns a leased or PPA system, not to the homeowner. The lessor claims the credit (up to 30% of system cost) and is expected to pass the savings through as a lower monthly payment. Construction must begin by July 4, 2026, and the system must be placed in service by December 31, 2027. |
| CA Property Tax Exclusion (R&T §73) | Available to any California homeowner installing solar or a paired battery. The exclusion prevents your system’s added value from increasing your assessed property value for tax purposes. Sunsets January 1, 2027 for new installs. |
| Net Billing Tariff (NBT) + ACC Plus adder | Applies to all new PG&E, SCE, and SDG&E solar customers interconnected after April 15, 2023. Exports are credited at hourly avoided-cost rates of roughly $0.04 to $0.08 per kWh. PG&E and SCE residential customers also receive the ACC Plus adder on top (about $0.022/kWh in the NBT23 vintage, stepping down in later vintages), but SDG&E customers do not. Your export rate is locked for 9 years from interconnection; NBT was affirmed on appeal in March 2026. |
| SGIP RSSE (AB 209 tier) | Open to income-qualified households (≤80% AMI or enrolled in CARE/FERA) in CPUC or LADWP territory. Pays $1.10 per Wh for storage plus $3.10 per W for paired solar. Most sub-budgets are waitlisted as of Q2 2026 — roughly $1 million remains open in the SCE POU sub-budget and about $496,000 in the LADWP sub-budget. |
| DAC-SASH | Pays $3.00 per watt for systems between 1 and 5 kW. Eligibility requires meeting all of the following at once: PG&E, SCE, or SDG&E service; residence in a top-25% CalEnviroScreen 4.0 census tract; income at or below 80% AMI (or enrollment in CARE/FERA); and single-family owner-occupant status. |
| DAC Green Tariff | Available to renters in DAC census tracts served by PG&E, SCE, or SDG&E who can’t install their own solar. Delivers a 20% bill discount with no installation required. Expanded to 144 MW statewide in 2024 and extended to the Orange County Power Authority in February 2026. |
| SMUD MEO Partner+ | SMUD customers with a qualifying battery are eligible for up to $10,000 one-time (calculated at $500 per kWh against 80% of nameplate capacity) plus $440 per year per Powerwall, capped at three batteries. Enrollment must happen within 90 days of Permission to Operate. |
| SMUD Solar & Storage Rate | Applies to SMUD residential solar or storage customers approved on or after March 1, 2022. Exports are credited at a flat $0.074 per kWh across all hours and all seasons – simpler and more favorable than CPUC’s NBT export rates. SMUD’s 2026 quadrennial rate update may adjust the rate up or down by as much as 30%. |
| LADWP Retail-Rate NEM | Available to all LADWP solar customers under the LA City Electric Rate Ordinance 180127. Credits match the applicable residential rate schedule and carry forward without expiration, up to a 1 MW system cap. Unchanged since 2018 and the most valuable net-metering incentive still available in California. |
| Municipal utility rebates | Residents of Pasadena, Silicon Valley Power, Anaheim, Rancho Mirage, Alameda, and Burbank may qualify for local rebates that vary widely — from $500 for income-qualified Alameda households up to roughly $6,700 stacked in Silicon Valley Power territory. Budgets are finite and program pages update without notice, so confirm directly with your utility before signing a contract. |
| Virtual Power Plant payments (Tesla ELRP, PG&E Cybertruck V2X pilot) | Powerwall owners on PG&E, SCE, or SDG&E can enroll in Tesla’s Emergency Load Reduction Program and earn $2 per kWh dispatched — typically $100 to $600 per summer depending on the utility. ELRP reopened to new enrollments in March 2026. PG&E also announced a Cybertruck V2X pilot on April 20, 2026, offering a $4,500 rebate for enrolled participants. |
Find out what California programs are available to you!
The Federal Solar Tax Credit
The homeowner-side credit is gone. The commercial-side credit that funds leases and PPAs remains active, subject to conditions.
Section 25D Residential Credit (Repealed January 1, 2026)
Section 25D covered 30% of qualifying cash-or-loan solar costs. The One Big Beautiful Bill Act repealed it for any system placed in service after December 31, 2025. If your system was placed in service in 2025 or earlier, any unused credit still carries forward against future tax liability.
See our current breakdown of solar panel costs in California for what the math looks like without the tax credit in 2026.
Section 48E Commercial Credit (Lease and PPA Systems)
Section 48E is a separate commercial-side tax credit. Residential-scale leased and PPA systems qualify when the lessor claims it.
Per IRS Notice 2025-42, issued August 15, 2025, the key mechanics are:
| Mechanic | Rule |
|---|---|
| Base rate | 6% of qualifying investment |
| Full rate | 30% when Prevailing Wage and Apprenticeship standards are met, or when the system is under 1 MW AC |
| Begin-construction deadline | July 4, 2026 |
| Placed-in-service backstop | December 31, 2027 |
| Physical Work Test | Required for projects starting on or after September 2, 2025 |
| Safe harbor | Traditional 5% safe harbor is disallowed except for systems at or below 1.5 MW AC |
| Adders | Domestic-content and energy-community adders apply by ZIP code |
OBBBA also eliminated §48E eligibility for leased solar water heating and leased small wind. Rooftop PV, with or without a battery, is the only leased category remaining.
Why the lessor claims the credit. In a lease or PPA, the installer owns the system and is the taxpayer for §48E purposes, not you. Your benefit is indirect: the lessor is supposed to price your monthly payment lower than they otherwise would to reflect the credit they collect.
The CFPB’s August 2024 Issue Spotlight on third-party-owned solar financing documented that this pass-through is inconsistent in practice.
If you are signing a lease or PPA in 2026, ask the installer to show you in writing how the §48E credit is reflected in your monthly payment, and read the contract’s pricing schedule against that figure.
For a more detailed look at how “free solar” offers actually work in California, see our guide: The Truth About “Free” Solar Panels in California.
Solar Incentives For PG&E, SCE and SDG&E Customers
If PG&E, SCE, or SDG&E runs your meter, your incentive stack sits under CPUC jurisdiction. The Net Billing Tariff, SGIP, and DAC-SASH are the programs that structure your options.
The Net Billing Tariff (NBT) And ACC Plus Adder
All new solar customers on PG&E, SCE, and SDG&E interconnected after April 15, 2023, are on the Net Billing Tariff. Exports are priced hourly through the 2024 Avoided Cost Calculator, and your export rate is locked to your interconnection vintage for nine years.
The ACC Plus adder boosts the first several years of export credits, but only for PG&E and SCE residential customers. It pays 2.2 cents per kWh in the NBT23 vintage, steps down to 0.88 cents in NBT26, and drops to 0.44 cents in NBT27. SDG&E residential customers do not receive the adder at all, which is the main reason battery economics look tighter in SDG&E territory.
Customers interconnected before April 15, 2023, remain on NEM 2.0 for 20 years from their interconnection date, earning roughly 30 to 35 cents per kWh in retail-rate credits. If you are already on NEM 2.0, expanding your system past the point that triggers a new interconnection will typically move you onto NBT. Confirm with your installer before adding capacity.
SGIP RSSE (Income-Qualified, Mostly Waitlisted)
The ratepayer-funded SGIP tiers closed December 30, 2025. What remains is the AB 209 Residential Solar and Storage Equity tier, which pays $1.10 per Wh for storage plus $3.10 per W for paired solar.
Most AB 209 sub-budgets are already waitlisted as of Q2 2026, though the SCE RSSE-AB 209 POU sub-budget showed roughly $1.0 million still open per the SGIP Statewide Program Administrator’s nightly metrics on selfgenca.com.
Before signing a contract that assumes an SGIP rebate, confirm the live budget status and ask your installer for a reservation number, not just a promise.
DAC-SASH ($3/W For 1 To 5 kW Systems)
DAC-SASH pays $3.00 per watt for systems between 1 and 5 kW.
Eligibility requires meeting all four of the following at once:
- PG&E, SCE, or SDG&E electric service
- Residence in a top-25% CalEnviroScreen 4.0 census tract
- CARE or FERA enrollment, or household income at or below 80% of the area median income
- Single-family owner-occupant status
GRID Alternatives administers the program. Funding is authorized through 2030, with the July 1, 2026, transition from GHG allowance revenues to Public Purpose Program surcharges as the near-term change to watch.
DAC Green Tariff (20% Bill Discount For DAC Renters)
If you live in a DAC census tract but rent rather than own, the DAC Green Tariff delivers a 20% bill discount without requiring a solar installation. The program was expanded to 144 MW statewide in 2024 and extended to the Orange County Power Authority (as of February 2026).
SMUD Solar Incentives (Sacramento County)
Sacramento Municipal Utility District (SMUD) is a publicly owned utility outside CPUC jurisdiction, so the NBT, SGIP, and DAC-SASH programs don’t apply in Sacramento County. SMUD runs its own self-contained incentive architecture instead.
My Energy Optimizer Partner+ (Up To $10,000 + $440/Year Per Powerwall)
MEO Partner+ pays a one-time enrollment incentive of up to $10,000, calculated at $500 per kWh against 80% of nameplate capacity. Recurring payments in 2026 apply to Tesla Powerwall only: $110 per quarter per battery, capped at 3 batteries and $440 per battery per year.
Enrollment must happen within 90 days of Permission to Operate. If interconnection delays push your PTO date later than expected, that 90-day window often becomes the binding constraint rather than the incentive amount itself. The program Terms document is dated April 3, 2026.
Solar And Storage Rate ($0.074/kWh Flat Export)
SMUD’s Solar and Storage Rate applies to residential solar or storage customers approved on or after March 1, 2022. Exports are credited at a flat $0.074 per kWh across all hours and all seasons, which is simpler and more favorable than CPUC’s hourly NBT export pricing.
SMUD’s 2026 quadrennial rate update opened with a cap of ±30 %. Board resolutions during the rate case will set the final shape of the rate going forward.
LADWP Solar Incentives (Los Angeles)
The Los Angeles Department of Water and Power (LADWP) is also outside the CPUC jurisdiction, which means no NBT, no SGIP, and no DAC-SASH.
It also means Los Angeles homeowners retain access to the single most valuable incentive still on the table in California: retail-rate net metering, unchanged since 2018.
Retail-Rate NEM With Non-Expiring Credits
LADWP operates a retail-rate net metering tariff under LA City Electric Rate Ordinance 180127. Credits match the applicable residential rate schedule (R-1, A-1, A-2, or A-3 under the NEM Service Rider) and carry forward without expiration. The system cap is 1 MW.
In practice, LADWP is the last major California utility where a new residential customer can earn full retail credits on exported solar. For households that can’t size their system purely for self-consumption, that distinction is the single most valuable incentive in the state.
LADWP has not run a separate residential solar rebate since 2018 because the retail-rate NEM tariff does the economic work a rebate would normally do.
If an installer pitches you an “LADWP solar rebate” outside the income-qualified AB 209 tier, ask them to show you the tariff document that authorizes it.
LADWP RSSE AB 209 (Income-Qualified, Waitlisted)
LADWP’s AB 209 RSSE tier opened September 29, 2025, with $32.4 million authorized. As of April 21, 2026, approximately $496,000 remained and the program was waitlisted. The program pays $1.10 per Wh for storage plus $3.10 per W for paired solar, with Haven Energy as the major approved contractor and applications channeled through GRID Alternatives.
Eligibility requires household income at or below 80% AMI, or CARE/FERA enrollment. Given the waitlist posture, any claim of this rebate in a sales conversation should be verified directly against the LADWP solar incentive page before you sign.
Find out what California programs are available to you!
California Municipal Utility Solar Rebates
Homeowners served by smaller municipal utilities fall outside both the CPUC jurisdiction and the larger SMUD and LADWP programs. Each municipal utility runs its own incentive schedule, and budgets are finite, so verify program status on the utility’s website before signing a contract.
The following programs are active as of April 2026:
- Pasadena Water & Power (launched April 2026): $0.60 per W residential solar rebate, $1.00 per W for income-qualified households, and up to $550 per kWh battery rebate. Owner-occupants only. The total program budget is $2.65 million.
- Silicon Valley Power: Solar rebate of $0.15 per Wh up to $2,700, with adders that can stack to roughly $6,700.
- Anaheim Public Utilities: Battery rebate up to $3,000.
- Burbank Water & Power: Solar Net Billing Tariff launched January 1, 2026. Existing NEM customers are grandfathered.
- Rancho Mirage Energy Authority: Battery rebate of $500 to $1,500. The prior $500 solar rebate ended October 14, 2024.
- Alameda Municipal Power: Income-qualified solar rebate of $500 one-time, for households below $106,000 annual income in homes built before 2020.
Municipal Utilities with no active residential PV or battery rebate: Glendale Water & Power, Azusa Light & Water, Imperial Irrigation District, Modesto Irrigation District, Turlock Irrigation District, Roseville Electric, Lodi Electric Utility, and Palo Alto Utilities.
Statewide California Solar Incentives
Two incentives apply to California homeowners regardless of which utility serves them.
R&T §73 Property Tax Exclusion (Sunsets January 1, 2027)
California Revenue and Taxation Code §73, enabled by AB 1451 (2008), shields qualifying solar and paired battery systems from assessed-value increases for property tax purposes.
SB 710, signed October 3, 2025, clarified legacy treatment but did not extend new-install eligibility past the January 1, 2027, sunset. Per Board of Equalization guidance, systems in progress but not complete by that date do not qualify. No extension bill has been introduced as of Q2 2026.
No State Solar Sales Tax Exemption: California does not provide a statewide residential solar sales-tax exemption. CDTFA Regulation 1521 and Publication 61 are the governing references.
Virtual Power Plant Payments
Powerwall owners on PG&E, SCE, or SDG&E can earn ongoing income by enrolling in Tesla’s Emergency Load Reduction Program, which reopened to new enrollments in March 2026. ELRP pays $2 per kWh dispatched across seven or more events between May 1 and October 31 each year. PG&E Powerwalls have historically earned $200 to $600 per summer; SCE and SDG&E Powerwalls earn $100 to $450 per year.
On April 20, 2026, PG&E announced a separate Cybertruck V2X pilot that offers a $4,500 rebate to enrolled participants.
California Solar Consumer Protections
California has layered solar-specific consumer protections that affect decision timing more than they affect incentive math. Lease and PPA contracts carry the most post-signing exposure, so read them carefully.
The CSLB C-46 Solar Contractor License Requirement
California requires a C-46 solar contractor license under 16 CCR §832.46 for solar installation work. Battery-only installation scope remains unsettled: CALSSA has an injunction action pending over whether standalone battery installs require a C-10 (electrical) or C-46 (solar) license. AB 1070 (2017) is the official California solar consumer protection statute.
Unlicensed contractor enforcement is active. CSLB ran a statewide sting in November 2025 that produced 119 enforcement actions, and the agency issued $26.5 million in restitution across 2025 complaints. Before signing a contract, verify your contractor’s C-46 license on the CSLB license lookup.
For our current shortlist of vetted installers, see our guide to the best solar companies in California.
The CPUC Solar Consumer Protection Guide
Solar contractors selling to PG&E, SCE, or SDG&E customers must provide Version 4 of the CPUC Solar Consumer Protection Guide, issued October 2025, before the customer signs. If you did not receive it, the contract has a compliance problem.
Your Cancellation Rights
Under the California Home Solicitation Sales Act (Cal. Civ. Code §1689.5 et seq.), you have the right to cancel a door-to-door solar sale:
- 3 business days after signing for the standard customer
- 5 business days after signing if you are 65 or older
- Written notice by mail or in-person delivery satisfies the statute
- Full refund of any deposit is required
Two 2026 statutes expanded the consumer-protection stack further. SB 825 gave the DFPI authority over unfair, deceptive, or abusive acts in solar financing as of January 1, 2026. SB 784 requires solar and home-improvement financing providers to register with the state as of the same date.
Interconnection Delays At PG&E and SCE
An approved application is not a live system. Rule 21 governs interconnection timelines, and PG&E and SCE have consistently missed them.
CALSSA’s August 2025 CPUC complaint documented miss rates of 19 to 73 percent for PG&E and SCE across various Rule 21 milestones. PG&E’s median response time has been 20 days against a 10-day Rule 21 deadline, with System Impact Study on-time performance at 49 percent. SCE sits at 43 percent on time.
SDG&E is compliant. If your project is under SDG&E service, interconnection is a smaller planning variable than it is for PG&E or SCE customers.
CPUC Rulemaking R.25-08-004, the Rule 21 Modernization OIR, opened August 20, 2025, and is the active proceeding to watch. In the meantime, interconnection delay is a reason to start your project earlier than the incentive deadlines suggest, since a PTO slip can push you past a §48E begin-construction date or the 90-day SMUD MEO Partner+ enrollment window.
What To Do Next (By Utility Territory)
The right next step depends on which utility runs your meter.
PG&E customers:
- Confirm your NBT vintage and understand your ACC Plus adder schedule
- Check DAC-SASH eligibility with GRID Alternatives if you’re income-qualified or live in a top-25% CalEnviroScreen tract
- Verify SGIP AB 209 RSSE budget status on selfgenca.com before assuming the rebate is available
- If considering a lease or PPA, read the §48E pass-through language carefully and confirm the July 4, 2026, begin-construction deadline is realistic given current PG&E interconnection times
SCE customers:
- The SCE RSSE-AB 209 POU sub-budget showed roughly $1.0 million open as of April 21, 2026. That is the one active rebate path if you qualify based on income
- Otherwise, plan around NBT with ACC Plus, §48E considerations for lease or PPA, and Rule 21 timing slippage (same as PG&E)
SDG&E customers:
- Your NBT export credits are pure avoided costs with no ACC Plus adder
- SDG&E is compliant with Rule 21 timelines, so interconnection is a smaller planning variable
- DAC-SASH is available on the same four-gate basis as PG&E and SCE
SMUD customers:
- MEO Partner+ is the centerpiece. Enroll within 90 days of Permission to Operate
- Confirm the April 3, 2026 Terms document is still current at signing
- Verify your battery against the Powerwall-only 2026 recurring payment structure
LADWP and smaller municipal utility customers:
- LADWP customers should treat retail-rate NEM as the primary incentive and verify RSSE AB 209 budget status directly before relying on a rebate quote
- Smaller municipal utility customers should check the specific rebate above against their utility’s program page within the last 30 days, since budgets are finite and program pages update without notice
Once you’ve identified which programs apply to your situation, our California solar guide walks through the cost estimates, contract protection checks, and installer vetting tools that come next.
6 Scenarios Where You Likely Won’t Qualify For California Incentives
Most of the incentives and rebates covered above have eligibility rules that exclude the majority of California homeowners. Knowing which programs are out of reach matters just as much as knowing which ones you can claim, because some sales pitches still feature programs that you were never going to be eligible for in the first place.
The 30% federal residential tax credit. Repealed as of January 1, 2026. If you are buying a system in 2026, you cannot claim this credit. Any sales pitch that references “the 30% federal solar tax credit” for a cash or loan purchase in 2026 is either outdated or misleading.
The closed SGIP tiers. The General Market, Equity, and Equity Resiliency tiers all closed to new applications on December 30, 2025. None of them is available in 2026. Only the income-qualified AB 209 RSSE tier remains.
SGIP RSSE AB 209 if your income is above 80% AMI. The remaining tier is restricted to households at or below 80% of the area median income, or enrolled in CARE or FERA. If your income exceeds that threshold, the rebate is not available to you. Even if you qualify on income, the relevant sub-budget may close before your reservation is confirmed.
DAC-SASH if you don’t meet all four requirements. The program requires PG&E, SCE, or SDG&E service; residence in a top-25% CalEnviroScreen 4.0 census tract; income at or below 80% AMI or CARE/FERA enrollment; and single-family owner-occupant status. Most California homeowners fail at least one of these, usually the census-tract requirement.
SMUD, LADWP, and municipal utility programs outside their service territories. SMUD’s MEO Partner+ is for Sacramento County customers only. LADWP’s retail-rate NEM is for City of Los Angeles customers only. The Pasadena, Silicon Valley Power, Anaheim, Burbank, Rancho Mirage, and Alameda rebates are each limited to their own utility’s customers. Service territory is determined by your meter, not by ZIP code or geographic proximity.
The R&T §73 property tax exclusion after January 1, 2027. The exclusion sunsets for new installs on that date. Per Board of Equalization guidance, systems in progress but not complete by January 1, 2027, do not qualify.
If a sales quote includes any program above, ask the installer to verify your eligibility against the specific program rules before you sign.
The Bottom Line
Three factors will largely determine your 2026 incentive options in California: which utility runs your meter, whether you buy or lease the system, and whether you meet income or census-tract eligibility requirements.
For cash and loan purchases, the incentive math is in your name. For lease and PPA purchases, the federal credit is in the installer’s name, and pass-through terms become the part of your contract that matters most.
Two deadlines should drive your timing in 2026: the July 4, 2026 §48E begin-construction cliff for lease and PPA systems, and the January 1, 2027 R&T §73 property-tax exclusion sunset for all new installs. SGIP RSSE and LADWP RSSE budgets can also close between your contract date and your permit date, so verify live status before you sign.
If you’re still weighing whether the 2026 math works for your household, our analysis of whether solar panels are worth it in California walks through the full break-even calculation.
Find out what California programs are available to you!
Frequently Asked Questions
No. The 30% Residential Clean Energy Credit under §25D was repealed for any system placed in service after December 31, 2025, under the One Big Beautiful Bill Act. Unused credits from pre-2026 installs still carry forward.
For leased and PPA systems, the separate commercial §48E credit is still available to the company that owns the system, with a July 4, 2026, begin-construction deadline.
Only through the AB 209 RSSE tier, and only if you are income-qualified. The General Market, Equity, and Equity Resiliency ratepayer tiers closed on December 30, 2025. Most AB 209 sub-budgets are waitlisted, though the SCE RSSE-AB 209 POU sub-budget showed roughly $1 million open as of April 21, 2026. Check live status at selfgenca.com before signing.
It depends on your utility. LADWP customers have the most valuable still-available incentive in the state: retail-rate net metering with non-expiring credits.
SMUD customers can earn up to $10,000 one-time plus $440 per year per Powerwall through MEO Partner+. PG&E and SCE customers get the ACC Plus adder on top of NBT exports. Income-qualified homeowners in CPUC territory can access DAC-SASH at $3 per watt for 1 to 5 kW.
No. California does not provide a statewide residential solar sales-tax exemption. CDTFA Regulation 1521 and Publication 61 are the governing references.
January 1, 2027, for new installs. The R&T §73 exclusion shields qualifying solar and paired battery systems from assessed-value increases. SB 710, signed October 3, 2025, clarified legacy treatment but did not extend new-install eligibility past the sunset. Per Board of Equalization guidance, systems in progress but not complete by January 1, 2027, do not qualify.
Only if you meet four eligibility requirements at once: PG&E, SCE, or SDG&E electric service; residence in a top-25% CalEnviroScreen 4.0 census tract; CARE or FERA enrollment or household income at or below 80% AMI; and single-family owner-occupant status.
The rebate pays $3 per watt for systems between 1 and 5 kW, administered by GRID Alternatives.
NEM 3.0, formally the Net Billing Tariff, is the CPUC’s successor to NEM 2.0. It applies to new PG&E, SCE, and SDG&E solar customers interconnected on or after April 15, 2023, and was affirmed on appeal in March 2026.
Export credits are priced hourly at roughly $0.04 to $0.08 per kWh versus retail rates of $0.30 to $0.35 per kWh. Battery storage is what makes NBT economics work. SMUD and LADWP customers are outside the CPUC jurisdiction and are not on NBT.
Sources & References
- Internal Revenue Service – Residential Clean Energy Credit (§25D) Topic Page
- Internal Revenue Service – Notice 2025-42: Beginning Of Construction Rules For Section 48E
- U.S. Congress – Public Law 119-21 (One Big Beautiful Bill Act)
- Consumer Financial Protection Bureau – Issue Spotlight: Solar Financing (August 2024)
- California Public Utilities Commission – Decision 22-12-056 (Net Billing Tariff)
- California Public Utilities Commission – Decision 25-12-003 (SGIP And DAC-SASH Funding)
- California Public Utilities Commission – Decision 24-05-065 (DAC Green Tariff Expansion And CSGT Closure)
- California Public Utilities Commission – Decision 21-12-015 (Emergency Load Reduction Program)
- California Public Utilities Commission – Rulemaking 25-08-004 (Rule 21 Modernization)
- California Public Utilities Commission – Decision 18-06-027 (DAC-SASH Program Establishment)
- California Public Utilities Commission – Solar Consumer Protection Guide, Version 4
- Self-Generation Incentive Program – Statewide Program Metrics
- GRID Alternatives – DAC-SASH Program
- GRID Alternatives – Energy for All (Single-Family Solar Programs)
- Sacramento Municipal Utility District – My Energy Optimizer Partner+ Program
- Sacramento Municipal Utility District – Residential Rate Schedules
- Los Angeles Department of Water and Power – Solar Programs
- City of Los Angeles – Electric Rate Ordinance 180127
- Rancho Mirage Energy Authority – Residential Battery Rebate
- Alameda Municipal Power – Income-Qualified Solar Rebate
- Pasadena Water and Power – Residential Solar And Battery Rebate
- Silicon Valley Power – Residential Solar Rebate
- Anaheim Public Utilities – Battery Storage Rebate
- Burbank Water and Power – Solar Net Billing Tariff
- California Legislative Information – Revenue And Taxation Code Section 73
- California Legislative Information – Senate Bill 710 (Blakespear, Chapter 328, Stats. 2025)
- California Legislative Information – Assembly Bill 1070 (Gonzalez Fletcher, Chapter 662, Stats. 2017)
- California Courts – Appellate Case Docket A167721 (Center For Biological Diversity v. CPUC)
- California Department of Tax and Fee Administration – Regulation 1521 (Construction Contractors)
- Contractors State License Board – Media Room And Enforcement Actions
- SolarAPP+ – Participating Jurisdictions
- Tesla – Emergency Load Reduction Program Enrollment
- CalMatters – California Solar Interconnection Delays Report (October 7, 2025)