California Solar Panels

California’s Net Billing Tariff (NBT), also known as NEM 3.0, went into effect on April 14, 2023, and applies to all new solar customers served by Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). Under this policy, excess solar energy exported to the grid earns bill credits based on time-varying wholesale rates — on average worth about 25% of retail electricity rates — rather than the full retail rate offered under the older NEM 2.0 program.

Residential PG&E and SCE customers who apply to interconnect before the end of 2027 are eligible for a temporary export adder, which provides slightly higher-than-normal bill credits for exported energy for nine years. To maximize savings under NEM 3.0, pairing solar with a battery storage system is strongly recommended, as stored energy can be used or exported during high-value evening hours when export credits are worth the most.

Customers who were grandfathered into NEM 1.0 or NEM 2.0 retain their original tariff terms, though under proposed AB 942, customers on older NEM tariffs for 10 or more years may be transitioned to NEM 3.0 starting July 1, 2026. If you purchase a home with an existing solar system installed under an older NEM program, you will be required to enroll in the current NEM tariff as of January 1, 2026.

The Self-Generation Incentive Program (SGIP), administered by the California Public Utilities Commission (CPUC), provides rebates to residential and non-residential customers who install qualifying battery storage systems on their side of the utility meter. For general-market residential customers of PG&E, SCE, SoCalGas, or SDG&E, the standard rebate is approximately $150 per kWh of storage capacity, which can cover roughly 15% of the cost of a typical home battery installation. For a 10 kWh battery, this could translate to $1,500 or more depending on current step levels.

To qualify, the battery storage system must be wired to function during a power outage (i.e., configured for backup power). The rebate amount is tiered and decreases as more customers claim it, so applying sooner is advantageous. Most residential systems are eligible for up to 30 kWh of storage under the general market program.

SGIP also offers an Advanced Payment option, allowing eligible customers to receive 50% of their incentive upfront before installation is complete, reducing out-of-pocket costs. You can check current program availability, find an approved developer, and start your application at the official SGIP website: www.selfgenca.com. Program administrators include PG&E ([email protected]), SCE ([email protected]), SoCalGas ([email protected]), and the Center for Sustainable Energy ([email protected]).

California’s SGIP program provides significantly higher rebates for income-qualified customers and those living in high fire-risk areas. Under the Equity category, eligible customers can receive $850 per kWh of battery storage capacity, while those qualifying under the Equity Resiliency category can receive $1,000 per kWh. These enhanced rebates can cover 80% to 100% of the total cost of installing a battery storage system, making it essentially free for many qualifying households.

To qualify for the Equity Resiliency category, customers must live in a Tier 2 or Tier 3 High Fire-Threat District (HFTD) as designated by the CPUC, or have experienced more than two Public Safety Power Shutoff (PSPS) events. Customers do not need to prove fire damage — only their address and location on the CPUC fire risk map are required. Medically vulnerable customers may also qualify for enhanced rebates.

These rebates are available to customers of PG&E, SCE, SoCalGas, SDG&E, and the Los Angeles Department of Water and Power (LADWP). Because SGIP uses a tiered rate structure, rebate values decrease as more customers enroll, so applying as early as possible is strongly encouraged. Visit www.selfgenca.com to check eligibility and begin your application.

The Residential Solar and Storage Equity (RSSE) program is a dedicated budget category within California’s SGIP, backed by $280 million in CPUC-authorized funding. Available for reservation beginning June 2, 2025, the RSSE program is designed to help low-income Californians access solar and battery storage at little to no cost. For an average-sized system — approximately 7 kW of solar and 10 kWh of battery storage — qualifying households can receive up to $21,700 toward solar and $11,000 toward battery storage, potentially covering 100% of installation costs.

To qualify, applicants must be California residential customers whose household income is at or below 80% of the Area Median Income (AMI) for their county, or who live in a designated disadvantaged community. Eligibility is also extended to customers enrolled in CARE, FERA, or other approved community-based low-income programs. Importantly, customer ownership of the system is not required — leases, Power Purchase Agreements (PPAs), and prepaid systems can all qualify for RSSE incentives.

The program allows a single-family household to receive incentives for up to a 15 kWh battery and a 5 kW solar system. An Advanced Payment option is available, allowing eligible customers to receive 50% of their incentive upfront to reduce out-of-pocket costs during installation. To check eligibility and apply, visit the official SGIP portal at www.selfgenca.com.

The Disadvantaged Communities – Single-Family Affordable Solar Homes (DAC-SASH) program provides $3 per watt in solar installation incentives to eligible low-income homeowners, up to a maximum system size of 5 kilowatts (kW). For a 5 kW system, this translates to a $15,000 incentive that can cover a significant portion — or in some cases the entirety — of installation costs. The program is funded at $8.5 million annually and runs through 2030.

To qualify, homeowners must live in one of the top 25% most disadvantaged communities statewide as identified by the CalEnviroScreen tool, and must be a billing customer of PG&E, SCE, or SDG&E. Income qualification is also required. The program is administered by the non-profit GRID Alternatives, which also provides workforce development and solar job skills training as part of its mission.

DAC-SASH is currently accepting applications. Homeowners can visit gridalternatives.org or www.gridsolar.org to check eligibility and apply. This program is an excellent option for qualifying homeowners who want to go solar at little to no cost while also benefiting from reduced electricity bills under California’s net billing tariff.

The Solar on Multifamily Affordable Housing (SOMAH) program provides financial incentives for installing solar systems and paired energy storage at multifamily affordable housing properties throughout California. The program is specifically designed to deliver clean energy benefits directly to low-income tenants who have historically lacked access to rooftop solar. Incentives are available at up to $3.50 per AC Watt for solar generation that serves tenant loads, and up to $1.19 per AC Watt for systems serving common areas.

SOMAH is available to property owners of income-restricted multifamily housing (typically affordable housing with deed restrictions) served by PG&E, SCE, SDG&E, or SoCalGas. The program is structured so that a meaningful portion of the solar bill savings must flow directly to the low-income tenants living in the building, not just to the property owner.

Scheduled funding collections continue through June 30, 2026, and incentives will remain available until funding is exhausted, with availability projected through 2032. Property owners and managers interested in applying should visit the official SOMAH program website at calsomah.org for eligibility details, approved contractors, and application instructions.

California’s Active Solar Energy System Exclusion ensures that homeowners who install solar panels will not see an increase in their property taxes as a result of the added value the system brings to their home. Normally, home improvements that increase a property’s assessed value trigger higher property tax bills — but qualifying solar energy systems are explicitly excluded from this reassessment under California law.

This exclusion applies to active solar energy systems completed before January 1, 2027. An “active solar energy system” includes solar panels used for electricity generation (photovoltaic systems), as well as solar water heating and space heating/cooling systems. The exclusion covers the full value of the solar installation, meaning there is no cap on the dollar amount of the exclusion.

This benefit is automatic and does not require a separate application in most cases — the exclusion is applied at the county assessor level when a building permit is filed for a solar installation. For official details and county-specific guidance, visit the California State Board of Equalization website at boe.ca.gov. This is a valuable long-term benefit, as it preserves your property tax savings for the life of the system.

Property Assessed Clean Energy (PACE) financing is a unique funding mechanism available to California homeowners that allows them to install solar panels and battery storage systems with no money down. California is one of only a handful of states that offers PACE financing, making it an important option for homeowners who may not qualify for traditional solar loans or who prefer not to use home equity. Under PACE, the cost of the solar installation is repaid as an addition to your annual property tax bill over a term of 10 to 20 years.

Because the loan is secured by the property rather than the individual borrower, PACE financing is generally easier to qualify for than a conventional loan. The repayment obligation transfers with the home if it is sold, which can be a consideration for homeowners who may move before the loan is paid off. Interest rates are typically competitive, and the structured repayment schedule is designed so that energy savings offset the added tax payment.

PACE financing can be used in combination with other incentives such as SGIP battery rebates and the DAC-SASH solar incentive, potentially reducing or eliminating out-of-pocket costs entirely for eligible homeowners. To find PACE programs available in your area, contact your local utility or visit the California Energy Commission at energy.ca.gov.

Alameda Municipal Power (AMP), the community-owned electric utility serving the City of Alameda, offers an Income Qualified Solar Rebate Program for eligible residential customers. The program provides a one-time $500 rebate to homeowners who are installing a new solar photovoltaic system on their home. This rebate is available to AMP customers with household incomes below $106,000 per year.

To be eligible, the solar system must be installed on a home that was built before 2020. The rebate is designed to help make solar more accessible to moderate-income households in the Alameda service territory who may face financial barriers to going solar. The $500 rebate can be combined with other available incentives, such as SGIP battery rebates, to further reduce the overall cost of a solar-plus-storage system.

Homeowners interested in this program should contact Alameda Municipal Power directly to confirm current availability, application requirements, and any additional program details. Visit the official AMP website at alamedamp.com for the most up-to-date information.

The Sacramento Municipal Utility District (SMUD) provides additional rebates and incentives to its residential customers who install battery storage systems in conjunction with solar panels. Rebates can total up to approximately $2,500, helping to offset the upfront cost of adding battery backup to a home solar system. SMUD serves the greater Sacramento area and is one of California’s largest community-owned electric utilities.

Battery storage systems paired with solar allow homeowners to store excess daytime solar generation and use it during evening hours or during grid outages, maximizing energy independence and bill savings. SMUD’s battery incentive is designed to encourage this kind of paired solar-plus-storage adoption among its customers, supporting both grid reliability and individual energy resilience.

Eligibility requirements, current rebate amounts, and application instructions may change as program funding is allocated. SMUD customers should visit the official SMUD website at smud.org or contact SMUD directly to confirm the latest program details and apply. This rebate can be stacked with California’s SGIP program for additional savings.

The Disadvantaged Communities – Green Tariff (DAC-GT) program is a California initiative that enables income-qualified residential customers in disadvantaged communities to benefit from clean, renewable energy even if they are unable to install rooftop solar — for example, renters or homeowners with shaded or unsuitable rooftops. Participants receive a 20% discount on their electricity bill by being connected to utility-scale solar generation, making clean energy more accessible and affordable.

To be eligible, customers must meet the income requirements for either the California Alternate Rates for Energy (CARE) program or the Family Electric Rate Assistance (FERA) program, and must reside in a designated disadvantaged community. The program is available through the major investor-owned utilities — PG&E, SCE, and SDG&E — in their respective service territories.

DAC-GT is an important option for low-income Californians who want to reduce their energy costs and support clean energy but cannot participate in rooftop solar programs. The 20% bill discount is applied directly to monthly utility bills, providing immediate and ongoing financial relief. For more information and to apply, contact your utility or visit the CPUC’s solar in disadvantaged communities page.