Solar incentives / California
Federal, state and utility programs that reduce the cost of a home solar or battery system in California. Each record links to its source. Programs change often and can run out of annual funding — confirm current terms before relying on a number.
| Program | Value | Type | Expires | Source |
|---|---|---|---|---|
| Federal Residential Clean Energy Credit (Section 25D) federal · United States |
30% of eligible system cost for property placed in service 2022–2025; 0% for installs after 2025-12-31 (terminated by the 2025 budget-reconciliation law). | tax credit | 2025-12-31 | IRS — Residential Clean Energy Credit ↗ verified 2026-08-30 |
| Self-Generation Incentive Program (SGIP) — storage state · California |
Rebate per kWh of installed storage; equity tiers can cover most of the cost. | rebate | — | California PUC — SGIP ↗ verified 2026-08-30 |
| Active Solar Energy System Property-Tax Exclusion state · California |
System's added value is excluded from property-tax assessment. | exemption | 2026-12-31 | California BOE ↗ verified 2026-08-30 |
Self-Generation Incentive Program (SGIP) — storage: Rebate per kWh of installed storage; equity tiers can cover most of the cost. Active Solar Energy System Property-Tax Exclusion: System's added value is excluded from property-tax assessment.
For an average California bill, a whole-home system runs about $16,528 net of modeled incentives, with roughly a 6.4-year payback. Run it with your own bill in the Solar Decision Engine.
Self-Generation Incentive Program (SGIP) — storage: Rebate per kWh of installed storage; equity tiers can cover most of the cost. Active Solar Energy System Property-Tax Exclusion: System's added value is excluded from property-tax assessment. The federal residential tax credit is 30% for systems placed in service through 2025 and 0% afterward.
No state income-tax credit for solar is modeled for California. Utility rebates and tax exemptions may still apply.
Only for residential systems placed in service on or before 2025-12-31. A 2026+ residential install does not qualify for the Section 25D credit. Details →