Every incentive a California homeowner can actually use, what each one is worth, and the ones that no longer exist. Sourced and dated.
California moved new solar customers onto the Net Billing Tariff (NEM 3.0) in April 2023, and the NEM 2.0 grandfathering window closed permanently on April 15, 2026.
Exported power now earns an avoided-cost rate of roughly 5 to 8¢ per kWh rather than the ~30¢ it earned before — a reduction of about 75%. Imported power still costs 30 to 55¢ at peak.
The ACC Plus adder softens this for PG&E and SCE customers but not SDG&E, and it declines 20% each year through 2028. For 2026 PG&E interconnections it is roughly $0.0088 per kWh, with CARE/FERA households receiving about $0.036. It locks for nine years from your permission to operate.
SGIP battery rebates range from about $2,700 to $13,500 depending on eligibility, and California excludes solar from property tax reassessment through 2027. LADWP, SMUD and other municipal utilities set their own rules and are not on NEM 3.0.
Sources: California Public Utilities Commission Net Billing Tariff decision; SGIP program terms.
The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy with cash or a loan in 2026, you cannot claim it. Any site still advertising a 30% federal credit for a homeowner purchase is running outdated information.
What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible.
EnergyPros does not provide tax advice — confirm your situation with a tax professional.
Incentives only matter against the rate you are paying now. California moved new solar customers onto the Net Billing Tariff (NEM 3.0) in April 2023, and the NEM 2.0 grandfathering window closed permanently on April 15, 2026. Exported power now earns an avoided-cost rate of roughly 5 to 8¢ per kWh rather than the ~30¢ it earned before — a reduction of about 75%. Meanwhile imported power still costs 30 to 55¢ at peak. That gap is why a battery is no longer optional in California: the value is in using your own production during the 4pm–9pm peak rather than exporting it.
See the full breakdown of every California utility rate on our California solar page.
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No, not on a purchase. The Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. Section 48E still applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it. That is what makes $0-down possible.
Yes. Any rebate paid to your installer should appear on your contract as a reduction in price, not as a savings claim. Ask for an itemised quote showing the gross price, each incentive applied, and the net. If an installer will not itemise, that is worth noticing.
It depends on the incentive. Rebates paid to the installer reduce your contract price either way. Tax credits and renewable energy certificates generally follow ownership — under a lease or PPA the system owner claims them, which is part of how the monthly payment is kept low. A few state credits are exceptions.
No. EnergyPros is a marketplace. We match you with vetted, licensed and insured contractors who work in your area, and you deal directly with them on the quote and the installation.
California solar guides