California solar incentives no longer start with a rebate for your panels. For most homes, the money is the credit your utility gives for extra solar power, and each utility sets it in its own way. Batteries and lower-income homes can still get cash. One benefit covers every home: solar does not raise your property tax. That rule ends for systems finished on or after January 1, 2027. Open your utility below to see what applies to you.
Recently changed: SMUD cut its battery payment from $500 per kWh to $300 per kWh on September 23, 2026, and raised its price for extra power to 9.6 cents per kWh on June 1, 2026. The general SGIP battery rebate closed after December 31, 2025. The PG&E and SCE bonus credit steps down each year. Older guides may still show the old amounts.
What is left of California’s solar incentives in 2026?
Six things still help. They are sorted by how many homes they reach. A typical California system is 3.54 kW and costs about $9,806 before any battery.
| Incentive | What you get | How it reaches you | Who can get it | Open until |
|---|---|---|---|---|
| Bill credits for extra power | Hourly prices at PG&E, SCE and SDG&E. 9.6 cents per kWh at SMUD. Your energy price at LADWP. | On your electric bill | Every solar home | No end date. The PG&E and SCE bonus ends for applications from 2028. |
| Property tax exclusion | 100% of the value solar adds is left out of your tax bill | Nothing to file | Every owner, in every utility area | Systems finished before January 1, 2027 |
| SMUD battery payment | $300 per kWh, up to $6,000 | From SMUD, after you enroll the battery | SMUD customers on the Solar and Storage Rate | Enroll within 90 days of switch-on |
| PG&E outage battery rebate | $7,500 | You apply online after switch-on | PG&E addresses with 5 or more safety outages | December 31, 2026, or when the rebates run out |
| SGIP rebate for lower-income homes | $3.10 per watt of solar and $1,100 per kWh of battery | An approved installer applies for you | Homes at or below 80% of the local middle income | June 30, 2028. Most budgets are on a waitlist. |
| DAC-SASH solar for lower-income owners | $3 per watt of solar, used to install at no cost to you | The nonprofit GRID Alternatives installs it | Lower-income owners in listed communities, at PG&E, SCE or SDG&E | Through 2030 |
The federal tax credit for home solar ended for systems finished after December 31, 2025. California has no state tax credit for home solar.
PG&E, SCE, SDG&E, LADWP or SMUD: which one bills you?
Look at the top of your electric bill. If a second name such as Clean Power Alliance or San Diego Community Power is also on it, still open the utility that delivers your power.
PG&EPacific Gas and Electric. Northern and central California.Hourly bill credits, plus a small bonus for 9 years
What you can get with PG&E
- Credit for extra solar powerChanges by the hour
On the Solar Billing Plan, the solar power you send to the grid earns a price that changes every hour. The price follows what that power is worth to the grid at that hour. It is usually below the price you pay for grid power. Your prices are fixed for 9 years.
- Bonus credit0.88 cents per kWh
Added to every kWh you send out, if your application to connect is dated in 2026. It stays the same for 9 years from the day PG&E approves your system to switch on. Example: 1,000 extra kWh earn $8.80 more. For 2027 applications it drops to 0.44 cents per kWh.
- Battery rebate for outage-prone addresses$7,500
One per household, for a first home battery. Your address must have had 5 or more Wildfire Safety outages since January 1, 2024. These are outages tied to PG&E’s wildfire safety measures. PG&E’s Wildfire Safety Progress Map shows if your address counts. PG&E’s latest count, dated September 18, 2026, showed 179 rebates left. Ask PG&E whether funds remain before you buy.
- General battery rebate (SGIP)Closed
The state’s Self-Generation Incentive Program stopped taking general applications after December 31, 2025. Only a rebate for lower-income homes is left. See lower-income rebates.
Your bill credits
PG&E puts new solar homes on its Electric Home (E-ELEC) plan. This is a time-of-use plan: the price of power changes with the time of day. PG&E says you can save by using less between 4 and 9 p.m..
Credits you do not use move to the next month. Once a year PG&E settles your account. This is called the true-up. Credits still left over are paid at PG&E’s net surplus compensation rate, which is reset every month: 2.74 cents per kWh for true-ups in October 2026.
Homes that applied by April 14, 2023 are on net metering: the older rule that credits extra power at the full price you pay. They keep it for 20 years from the day the system was connected.
Watch out: The battery rebate has a clock. Apply within 12 months of approval to switch on, and no later than December 31, 2026. The battery must be bought on or after January 1, 2025. You must also be on a time-of-use plan and in PG&E’s Emergency Load Reduction Program through your battery company. In that program, your battery helps the grid during emergencies.
Also for every California home: the property tax rule and its deadline, battery payments and rebates for lower-income homes.
Southern California Edison (SCE)Much of Southern California outside the City of Los Angeles and San Diego.Hourly bill credits, plus a 1.6 cents per kWh bonus
What you can get with Southern California Edison (SCE)
- Credit for extra solar powerChanges by the hour
On the Solar Billing Plan, the solar power you send to the grid earns a price that changes every hour. The price follows what that power is worth to the grid at that hour. It is usually below the price you pay for grid power. Your prices are fixed for 9 years. SCE’s 2026 averages: about 6 cents per kWh on summer days, 21 cents on summer evenings (4 to 9 p.m.) and 3 cents on winter days. Example: 100 kWh sent out on summer evenings earn about $21. The same 100 kWh on winter days earn about $3.
- Bonus credit1.6 cents per kWh
Added to every kWh you send out, fixed for 9 years. Example: 1,000 extra kWh earn $16 more. SCE goes by the date your system is approved to switch on. The 2027 amount is 0.8 cents per kWh.
- If Clean Power Alliance is on your bill$2,000 to $3,500
Clean Power Alliance is a community power agency: a local public agency that buys your power, while SCE delivers it. It serves parts of Los Angeles and Ventura counties. Its Sun Storage Rebate pays $2,000 for a new battery of at least 5 kWh that works with solar. Homes in areas with frequent safety shutoffs get $1,250 more. Medical baseline or bill-discount customers get $250 more. First come, first served.
- General battery rebate (SGIP)Closed
The state’s Self-Generation Incentive Program stopped taking general applications after December 31, 2025. Only a rebate for lower-income homes is left. See lower-income rebates.
Your bill credits
SCE puts new solar homes on TOU-D-PRIME. This is a time-of-use plan: the price of power changes with the time of day.
Your bill has a supply part (the power itself) and a delivery part (the wires). If a community power agency is on your bill, it pays the supply part of your credits under its own rules. SCE pays the delivery part and the bonus.
Credits you do not use move to the next month. Once a year your account is settled. This is called the true-up. Credits still left over are paid at SCE’s net surplus compensation rate, which changes every month. Ask SCE for the current rate. Clean Power Alliance pays 10% more than SCE for that leftover.
Homes that applied by April 14, 2023 are on net metering: the older rule that credits extra power at the full price you pay. They keep it for 20 years from the day the system was connected.
Watch out: A savings estimate depends on the hours it assumes. Summer evening power earns far more than winter midday power. Ask each installer to show the credits by season, in writing.
Also for every California home: the property tax rule and its deadline, battery payments and rebates for lower-income homes.
San Diego Gas & Electric (SDG&E)San Diego County and southern Orange County.Hourly bill credits. No bonus.
What you can get with San Diego Gas & Electric (SDG&E)
- Credit for extra solar powerChanges by the hour
On the Solar Billing Plan, the solar power you send to the grid earns a price that changes every hour. The price follows what that power is worth to the grid at that hour. It is usually below the price you pay for grid power. Your prices are fixed for 9 years. Ask your installer for SDG&E’s current export prices in writing.
- Bonus creditNone
New PG&E and SCE solar homes get a bonus credit for 9 years. SDG&E homes do not.
- Bill discount in listed communities20%
For lower-income homes in a community the state lists as disadvantaged. The income limits are those of CARE and FERA, the state’s bill-discount programs. It comes through San Diego Community Power or another community power agency: a local public agency that buys your power, while SDG&E delivers it. No panels are needed.
- General battery rebate (SGIP)Closed
The state’s Self-Generation Incentive Program stopped taking general applications after December 31, 2025. Only a rebate for lower-income homes is left. See lower-income rebates.
Your bill credits
SDG&E puts new solar homes on EV-TOU-5. This is a time-of-use plan: the price of power changes with the time of day.
Credits you do not use move to the next month. Once a year your account is settled. This is called the true-up. Credits still left over are paid at SDG&E’s net surplus compensation rate, which changes every month. Ask SDG&E for the current rate.
Homes that applied by April 14, 2023 are on net metering: the older rule that credits extra power at the full price you pay. They keep it for 20 years from the day the system was connected.
Watch out: With no bonus, extra power you send out earns less here than at PG&E or SCE. Power you use yourself replaces grid power at the full price. Ask installers to size the system to your own use.
Also for every California home: the property tax rule and its deadline, battery payments and rebates for lower-income homes.
LADWPLos Angeles Department of Water and Power. The City of Los Angeles.Credits at your energy price. They carry over.
What you can get with LADWP
- Credit for extra solar powerYour energy price
LADWP still uses net metering: extra power earns a credit at the energy price of your own rate plan. A credit balance moves to your later bills. There is no yearly cutoff.
- Solar Rooftops: LADWP rents your roof$360 to $900 a year
LADWP installs and owns a system on your roof. It pays you a fixed amount for up to 20 years, up to $18,000 in total. The power goes to LADWP, so your own bill does not go down. For owner-occupied homes that pass LADWP’s roof check.
- Rebate for lower-income homes (SGIP)Waitlist
LADWP’s share of the state rebate for lower-income homes was on a waitlist when we checked. See lower-income rebates.
Your bill credits
The state’s Solar Billing Plan does not apply in Los Angeles. LADWP is a city utility with its own rules.
Credits cannot pay taxes or minimum charges. If you close your account, any credit balance is lost.
Watch out: LADWP net metering is for a system you own, or one you lease for at least 10 years. It does not allow a PPA: a contract where a company owns the panels and sells you the power.
Also for every California home: the property tax rule and its deadline, battery payments and rebates for lower-income homes.
SMUDSacramento Municipal Utility District. The Sacramento area.9.6 cents per kWh for extra power. Battery: $300 per kWh.
What you can get with SMUD
- Credit for extra solar power9.6 cents per kWh
The same price at any hour and in any season, since June 1, 2026. Example: 100 extra kWh earn $9.60. Credit you do not use moves to later bills.
- Battery payment$300 per kWh
Paid once, up to $6,000, through SMUD’s My Energy Optimizer Partner+ program. SMUD pays on the battery size minus the 20% that stays in reserve for outages. Example: a 13.5 kWh battery gets $3,240. In return, SMUD may use your battery when demand for power is highest. You commit for 3 years.
- Quarterly battery payment$110 per quarter
For one Tesla battery. Other brands get the one-time payment only, for now.
- Rebate for panelsNone
SMUD does not pay a rebate for solar panels.
Your bill credits
Systems approved on or after March 1, 2022 are on SMUD’s Solar and Storage Rate. You stay on the Time-of-Day rate, where power costs most from 5 to 8 p.m..
Older systems can stay on net metering, with fuller credits, through December 31, 2030. That ends sooner if you add a battery with SMUD money, change the system or move.
Watch out: Enroll your battery within 90 days of SMUD’s approval to switch on, or you lose the payment. The amount was $500 per kWh until SMUD cut it on September 23, 2026. Only projects that applied to connect by September 22, 2026 and enroll by December 31, 2026 keep the old amount.
Also for every California home: the property tax rule and its deadline, battery payments and rebates for lower-income homes.
Another city utility or irrigation districtFor example Roseville, Anaheim, Pasadena, Modesto or Imperial.Rules set by your city or district
What you can get with Another city utility or irrigation district
- Credit for extra solar powerSet locally
Your utility’s own board sets the rule. The state’s Solar Billing Plan does not apply. Ask for the current price for extra power in writing.
- Local rebatesAsk your utility
Ask if your utility has a solar or battery rebate this year, and how much money is left. Get the answer from the utility, not only from a salesperson.
- Rebate for lower-income homes (SGIP)Open
The state rebate for lower-income homes had open budgets for customers of public utilities when we checked: $3.10 per watt of solar and $1,100 per kWh of battery. See lower-income rebates.
Your bill credits
Each city utility and irrigation district writes its own rule for extra solar power. Get that rule before you decide how large your system should be.
Watch out: Do not use a PG&E, SCE or SDG&E example to estimate your credits. Your utility is not on the Solar Billing Plan.
Also for every California home: the property tax rule and its deadline, battery payments and rebates for lower-income homes.
Everything below applies across California.
Will solar raise your California property tax after 2026?
Not if your system is finished in time. Under Revenue and Taxation Code section 73, a solar system that is completed before January 1, 2027 is left out when the county values your home. 100% of the value it adds is excluded. A battery that is part of the system counts too. Solar heaters for pools and hot tubs do not.
The exclusion lasts until the home changes owner. It covers systems you own and systems you lease. There is nothing to file: the county assessor sees the building permit and applies it.
The law stops working on January 1, 2027. A system finished on or after that date gets no exclusion unless a new law passes. A 2026 bill to extend it, AB 2389, did not pass.
Sales tax is a different story. The state tax agency’s rule for solar contracts, Regulation 1521, treats panels, inverters and batteries as taxable. Only the labor to mount finished panels is not taxed. That rule lists no exemption for home solar. The tax is normally inside your quote already.
Watch out: The date that counts is the day the work is complete, not the day you sign. Ask your installer for a completion date in writing. If you are taxed for a system that qualifies, contact your county assessor.
See quotes built for your utility’s rules
Your ZIP code starts a quote request with installers near you. Ask each one to name your utility’s plan and show the battery as its own line.
- Your utility sets the creditPG&E, SCE, SDG&E, LADWP and SMUD each credit extra solar power in a different way.
- Free to compareRequesting quotes costs nothing, and there is no obligation.
- Shared only with matched installersYour details go to the installers you are matched with.
Does California still have net metering?
Only for older systems and in Los Angeles. Net metering means your utility credits extra solar power at the full price you pay for grid power. PG&E, SCE and SDG&E closed it to new homes. Applications to connect from April 15, 2023 go on the Solar Billing Plan instead. Many people call it NEM 3.0.
On the Solar Billing Plan, the price for power you send out changes every hour. It follows what that power is worth to the grid. Midday solar is plentiful, so midday prices are low. Summer evening prices are higher. A battery lets you keep midday solar and use it, or send it out, in the evening.
You can size a system to your yearly use, or up to 50% larger if you state in writing that you will use more power later, for example for an electric car.
Utility | Credit for extra power | Bonus in 2026 | Plan you are put on | Older systems |
|---|---|---|---|---|
PG&E | Hourly price, fixed for 9 years | 0.88 cents per kWh | Electric Home (E-ELEC) | Net metering for 20 years |
SCE | Hourly price. 2026 averages: 6 cents summer days, 21 cents summer evenings, 3 cents winter days | 1.6 cents per kWh | TOU-D-PRIME | Net metering for 20 years |
SDG&E | Hourly price, fixed for 9 years | None | EV-TOU-5 | Net metering for 20 years |
LADWP | Your rate’s energy price. Credits carry over. | None | Your current residential rate | Same rule |
SMUD | 9.6 cents per kWh, any hour | None | Solar and Storage Rate | Net metering through December 31, 2030 |
The PG&E, SCE and SDG&E plans in this table are time-of-use plans: the price of grid power changes with the time of day.
Watch out: Three things end the good terms early. If you grow an older system by more than 1 kW or 10%, whichever is larger, it moves to the Solar Billing Plan. If you buy a home that already has a Solar Billing Plan system, you do not get the bonus or the 9 years of fixed prices. And the bonus is gone for applications from 2028.
Which California battery rebates are still open?
The big statewide one is closed for most homes. Three local ones are open, each with a condition.
- SGIP, general rebate: closed. The Self-Generation Incentive Program took no general applications after December 31, 2025. Only the budget for lower-income homes is left.
- SMUD: $300 per kWh up to $6,000. You let SMUD use the battery at peak times and enroll within 90 days.
- PG&E: $7,500, only at addresses with 5 or more Wildfire Safety outages since January 1, 2024. Apply by December 31, 2026.
- Clean Power Alliance: $2,000 to $3,500. Reserve it before you install, or up to 3 months after.
- Payments for helping the grid: PG&E, SCE and SDG&E run the Emergency Load Reduction Program each summer through 2027. Your battery company signs you up and pays you on its own terms. Ask it for those terms in writing.
Watch out: Every open battery payment asks for something back: a price plan, a grid program or a deadline after switch-on. Read the condition before you count the money.
Rebates for lower-income homes and renters in California
This is where the largest amounts are. Two terms come up. CARE and FERA are the state’s bill-discount programs for lower-income households. A disadvantaged community is a neighborhood the state lists for high pollution and low income.
SGIP Residential Solar and Storage Equity
This state rebate pays $3.10 per watt of new solar and $1,100 per kWh of battery, for up to 30 kWh of battery in a single-family home. Example: a 5 kW system with a 13.2 kWh battery can get up to $30,020.
Your household income must be at or below 80% of the area median income: the middle household income where you live. Homes already checked for CARE, FERA or a similar program also qualify. Renters need the owner’s written approval. An SGIP-approved installer applies before the work starts.
When we checked, the budgets for PG&E, SCE, SDG&E and LADWP customers were on a waitlist. The budgets for customers of other public utilities were open. New applications close on June 30, 2028.
Watch out: A waitlist is not a reservation. Ask the installer for the reservation confirmation before you rely on this money.
Source: SGIP program metrics
DAC-SASH: solar at no cost through GRID Alternatives
DAC-SASH pays $3 per watt of solar. Example: a 3 kW system is 3,000 watts, so the program puts in $9,000. The nonprofit GRID Alternatives adds other funds and installs the system at no cost to you. There is no battery money in it.
You must own and live in a single-family home, be a PG&E, SCE or SDG&E customer, and meet the CARE or FERA income limits. The home must be in one of the 25% most disadvantaged communities in the state. The program runs through 2030. You apply through GRID Alternatives’ Energy for All program.
Source: GRID Alternatives, DAC-SASH
Renters and homes that cannot fit panels
The Disadvantaged Communities Green Tariff gives a 20% discount on your electric bill, with clean power from solar farms. Example: a $100 bill drops by $20. It is for CARE or FERA homes in a disadvantaged community, through PG&E, SCE or a community power agency. Most eligible homes are signed up automatically.
In Los Angeles, LADWP Shared Solar lets apartment and condo residents fix the price of 50 or 100 kWh a month for 10 years. It is a price lock, not a discount.
Source: CPUC, DAC Green Tariff
Who misses out on California’s remaining solar money
- Your system is finished on or after January 1, 2027. The property tax exclusion is gone for it, unless a new law passes.
- Your quote shows an SGIP battery rebate and your income is above the limit. The general budgets closed after December 31, 2025. What is left is for homes at or below 80% of the local middle income.
- Your PG&E address had fewer than 5 Wildfire Safety outages. The $7,500 rebate is tied to the address, not to PG&E customers in general.
- You are a SMUD customer and enroll your battery late. After 90 days from switch-on, the payment is lost. Single rental units cannot join.
- You sign a PPA in Los Angeles. LADWP net metering does not allow a contract where a company sells you the power from your roof.
- You buy a home that already has solar on the Solar Billing Plan. The bonus credit and the fixed prices do not pass to you.
- Your quote still counts the federal tax credit. It ended for systems finished after December 31, 2025. Ask for a new quote.
The California steps, from your bill to switch-on
- Read your bill. Note the utility, and any community power agency listed on it. They decide which rules on this page are yours.You.
- Check the lower-income programs first. If you are on CARE or FERA, the state’s bill-discount programs, contact GRID Alternatives or an SGIP-approved installer before you sign a normal contract.You.
- Your installer applies to connect the system. At PG&E, the year of that application sets your bonus credit. Reserve the Clean Power Alliance battery rebate now if it applies.Your installer. You sign the forms.
- Get the work finished before January 1, 2027. That keeps the property tax exclusion. There is no form for it.Your installer. The county assessor applies the exclusion.
- After the utility approves switch-on, start the battery clocks. SMUD: enroll within 90 days. PG&E: apply within 12 months and by December 31, 2026.You, or your battery company.
- Check your first bills and your next property tax bill. Look for the export credits and the bonus line. If your assessment went up because of solar, call the county assessor.You.
Compare California quotes before the property tax deadline
Enter your ZIP code to request quotes from installers in your area. Ask each one for a completion date in writing and for the export credits its savings estimate uses.
The form asks about your home first, then your contact details. EcoGen or its installer partners may contact you.
- A quote request, nothing moreYour ZIP code starts a request for quotes from local installers. It does not apply for a rebate.
- Home questions firstYou answer a few questions about your home. Your name, email and phone come last.
- You decideQuotes are free, and you never have to sign.
More California solar guides
California solar incentive questions
Does California Have a Solar Tax Credit?
No. California has no state tax credit for home solar. The federal credit ended for systems finished after December 31, 2025. The state’s tax help is a property tax exclusion for systems finished before January 1, 2027.
Is the California Solar Property Tax Exclusion Ending?
Yes, for new systems. Revenue and Taxation Code section 73 stops working on January 1, 2027. A system completed before that date keeps the exclusion until the home changes owner. A system completed later gets none unless a new law passes.
Does California Still Have Net Metering?
Not for new PG&E, SCE or SDG&E homes. Applications from April 15, 2023 go on the Solar Billing Plan, which pays an hourly price for extra power. Older systems keep net metering for 20 years. LADWP still credits extra power at your energy price. SMUD pays 9.6 cents per kWh.
Can I Still Get an SGIP Battery Rebate in California?
Only if your household has a lower income. The general budgets closed after December 31, 2025. The remaining budget pays $3.10 per watt of solar and $1,100 per kWh of battery to homes at or below 80% of the area median income, and most of its budgets were on a waitlist when we checked.
What Is the Best Solar Incentive in California Right Now?
It depends on your utility and income. For most homes it is the bill credit for extra power plus the property tax exclusion. SMUD pays $300 per kWh for a battery, up to $6,000. PG&E pays $7,500 at outage-prone addresses. Lower-income owners can get solar at no cost through DAC-SASH.
How Much Does PG&E Pay for Extra Solar Power?
A price that changes every hour, plus a bonus of 0.88 cents per kWh for 2026 applications. The bonus is fixed for 9 years. On 1,000 extra kWh it adds $8.80. Leftover credits at the yearly true-up are paid at PG&E’s monthly rate: 2.74 cents per kWh in October 2026.
Can My HOA Block Solar Panels in California?
No. Under the Solar Rights Act, a homeowners association may only set rules that add no more than $1,000 to the cost of your system or cut its output by no more than 10%. If it does not deny your application in writing within 45 days, the application counts as approved.
Do Renters Get Any California Solar Incentive?
Some do. Homes on CARE or FERA, the state’s bill-discount programs, in a community the state lists as disadvantaged can get a 20% bill discount with no panels. Renters can also use the lower-income SGIP rebate with the owner’s written approval.
Sources (25)
- California Public Utilities Commission, Net Energy Metering and Net Billing: cpuc.ca.gov
- PG&E, Electric Schedule NBT (Net Billing Tariff): pge.com
- PG&E, Solar Billing Plan: pge.com
- PG&E, Permanent Battery Storage Rebate: pge.com
- Self-Generation Incentive Program, Program Metrics: selfgenca.com
- California Public Utilities Commission, Self-Generation Incentive Program: cpuc.ca.gov
- California Public Utilities Commission, Solar in Disadvantaged Communities: cpuc.ca.gov
- California Public Utilities Commission, Disadvantaged Communities Green Tariff: cpuc.ca.gov
- California Public Utilities Commission, Emergency Load Reduction Program: cpuc.ca.gov
- GRID Alternatives, DAC-SASH: gridalternatives.org
- SMUD, Solar and Storage Rate: smud.org
- SMUD, Battery storage for homeowners: smud.org
- LADWP, Residential rates and Service Rider NEM: ladwp.com
- LADWP, Solar Rooftops: ladwp.com
- LADWP, Shared Solar: ladwp.com
- Clean Power Alliance, Sun Storage Rebate: cleanpoweralliance.org
- Clean Power Alliance, Solar: cleanpoweralliance.org
- California Revenue and Taxation Code section 73: leginfo.legislature.ca.gov
- California State Board of Equalization, Active Solar Energy System Exclusion: boe.ca.gov
- California State Board of Equalization, Active Solar Energy System Exclusion FAQ: boe.ca.gov
- California Department of Tax and Fee Administration, Regulation 1521: cdtfa.ca.gov
- California Franchise Tax Board, 2025 Instructions for Schedule P (540): ftb.ca.gov
- California Civil Code section 714 (Solar Rights Act): leginfo.legislature.ca.gov
- IRS, Residential Clean Energy Credit: irs.gov
- PG&E, Net Surplus Compensation Rates by true-up month (checked October 1, 2026): pge.com
