CaliforniaSolar Incentives 2026: Tax Credits, Rebates & Net Metering

California does not offer a state income tax credit specifically for residential solar. Most homeowners rely on the 30% federal Residential Clean Energy Credit as the primary up-front incentive.

Even without a state income credit, California's property tax exemption on solar equipment significantly reduce effective lifetime cost.

California requires investor-owned utilities to offer net metering on residential solar systems. The credit rate is a modified rate (typically retail rate minus a small grid utilization fee).

In practice, this means a properly sized California system can drive net annual electricity costs to within tens of dollars of zero. Top utilities operating under CA net metering rules include PG&E, SCE, SDG&E.

3 major utilities operate in California: PG&E, SCE, SDG&E. Specific rebate availability varies year to year and is typically distributed first-come, first-served until annual budget caps are reached.

Before scheduling any installation, verify current rebate status directly with your utility — programs open and close throughout the year. Most California installers will pull up-to-date rebate data during a site assessment.

California excludes the added value of a residential solar system from property tax assessments. A homeowner whose property gains $15,000 in assessed value from a solar install pays no additional property tax on that increase, saving roughly $250 to $400 annually depending on local mill rates.

California does not exempt solar equipment from sales tax, so installation invoices include standard sales tax on hardware components.

Compare California's solar incentive package side-by-side with adjacent states to see whether you live in a relatively high- or low-incentive market.