California Solar Incentives: What's Available in 2026

California has one of the most supportive environments for solar energy in the country. With state programs, local rebates, and utility incentives, homeowners can significantly reduce the cost of going solar. Here's a complete breakdown of every incentive available in 2026.

Self-Generation Incentive Program (SGIP)

SGIP is California's flagship battery storage incentive. It provides rebates for homeowners who install battery systems paired with solar. While general SGIP funds are limited, enhanced rebates are still available for qualifying groups:

• Low-income households: Up to $1,000/kWh in rebates (can cover 85%+ of battery cost)
• Customers in high fire-risk areas: Enhanced incentive of up to $400/kWh
• Medical baseline customers: Higher rebates for households dependent on electricity for medical needs
• Equity budget customers: Residents in disadvantaged communities

For a 13.5 kWh battery, SGIP equity rebates can provide up to $5,400–$13,500 — potentially making the battery nearly free.

California Net Energy Metering (NEM 3.0)

While not a direct rebate, NEM 3.0 determines how you're compensated for solar energy you send back to the grid. Under the current Net Billing Tariff, you receive export credits that vary by time of day, averaging $0.05–$0.08 per kWh.

The real value of NEM 3.0 comes from self-consumption — using your own solar energy (and stored battery energy) saves you the full retail rate of $0.30–$0.60 per kWh. This is why battery storage is now the key to maximizing your solar savings.

DAC-SASH Program

The Disadvantaged Communities — Single-family Solar Homes (DAC-SASH) program provides fully subsidized solar installations for qualifying low-income homeowners in disadvantaged communities. This can mean a completely free solar system — one of the most generous solar programs in the nation.

Eligibility is based on income level and home location. Check with your utility or a local solar installer to see if you qualify.

Property Tax Exemption

California's Active Solar Energy Systems Exclusion means that the value added to your home by solar panels is not subject to property tax reassessment.

This means if your solar system adds $20,000 in value to your home, you won't pay additional property taxes on that increase. Solar typically increases home value by 4.1% according to Zillow — on a $750,000 California home, that's over $30,000 in added value, tax-free.

California Solar Consumer Protection Act

While not a financial incentive, California's Solar Rights Act protects homeowners:

• HOAs cannot prohibit solar installations
• Cities must process solar permits efficiently
• Contractors must provide clear, standardized disclosures

Local Utility Rebates and Programs

Many California utilities offer additional programs:

Southern California Edison (SCE):

• Clean Energy Optimization Pilot — rebates for battery dispatch during grid emergencies
• Income-qualified programs for low-income customers

San Diego Gas & Electric (SDG&E):

• Power Your Drive — EV + solar programs
• Medical baseline rates for qualifying customers

Los Angeles Department of Water and Power (LADWP):

• Solar Incentive Program — $0.25/W for solar installations (up to $3,000+ for typical systems)
• Battery rebates available
• Not on NEM 3.0 — LADWP has its own, often more favorable, net metering program

EV Charger Incentives

If you're adding an EV charger with your solar installation, additional incentives may be available:

• Utility-specific EV charging rebates
• Some cities offer additional EV infrastructure incentives
• Many utility programs provide free or discounted Level 2 charger installations

Income-Qualified Programs

California offers enhanced incentives for low-to-moderate income households:

• DAC-SASH (Disadvantaged Communities — Single-family Solar Homes): Free solar installations for qualifying homeowners in disadvantaged communities
• SOMAH (Solar on Multifamily Affordable Housing): Incentives for solar on affordable housing
• CARE/FERA rates: Reduced utility rates that stack with solar savings

Maximize Your Incentives

At Everysun, we help you navigate every available incentive and ensure you claim everything you're entitled to. Our team handles all the paperwork — from SGIP applications to utility interconnection and rebate filings.

Get a free consultation and see exactly which incentives apply to your home, your utility, and your financial situation.