Fresno, CA

California’s Active Solar Energy System Property Tax Exclusion protects homeowners from property tax increases when they install solar panels or other qualifying solar energy systems. This state incentive works as a “new construction exclusion,” meaning your property taxes won’t go up even though you’ve added valuable solar equipment to your home. The exclusion applies to systems used for electricity production, water heating, space conditioning, and other energy needs.

The financial benefit varies by home but can save thousands of dollars annually in property taxes. Since California property taxes are based on assessed value, and solar systems can add $15,000-$40,000+ in value to a home, this exclusion prevents that added value from increasing your tax bill. The exclusion is automatic when you install solar on an existing home – no forms or applications required. However, if you buy a newly constructed home with solar already installed (completed after January 1, 2008), you may need to file form BOE-64-SES to claim the exclusion. The program is currently extended through the 2025-26 fiscal year and will sunset on January 1, 2027, so systems must be installed before this deadline to qualify.

The Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program is a California state initiative designed to make solar energy more accessible to homeowners in underserved communities. This program provides upfront cash incentives to help offset the cost of installing a solar energy system, making clean energy more affordable for qualifying families.

Eligible homeowners can receive up to $3 per watt in fixed, capacity-based incentives. For example, if you install a 6-kilowatt solar system, you could receive up to $18,000 in upfront incentives to reduce your installation costs.

To qualify for DAC-SASH, you must own and live in your home, receive electricity service from PG&E, Southern California Edison, or San Diego Gas & Electric, and be enrolled in or eligible for the CARE or FERA income-qualified utility programs. Additionally, your property must be located in a designated disadvantaged community area. If you think you might qualify, you can visit the GRID Alternatives website to learn more about the application process and check your eligibility.

California’s Equity Fund is a state program designed to make solar energy storage more accessible to low-income households and disadvantaged communities. This $630 million initiative, established under Assembly Bill 209 in 2022, provides rebates specifically for battery storage systems to help qualifying homeowners better utilize their solar energy and maintain power during outages.

The program offers rebates of $150, $850, or $1,000 per kilowatt-hour of battery capacity installed, with higher rebate amounts available for customers who qualify for special programs or live in high-risk areas. To be eligible, homeowners must be enrolled in California’s CARE or FERA low-income utility programs, live in designated Disadvantaged Communities, reside in California tribal areas, or live in areas with high fire risk or frequent power outages. Additionally, participants in this program receive enhanced net billing credits under California’s NEM 3.0 program and can save approximately 18-35% on their electric bills through CARE or FERA enrollment.

The Equity Fund addresses a key criticism of previous solar programs by specifically targeting communities that have historically had less access to clean energy benefits. This program works alongside California’s Self-Generation Incentive Program (SGIP) and is available to customers of the state’s three major utilities: Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric.

Net Billing in California is the current compensation system for solar customers who send excess electricity back to the grid. Under this program, homeowners receive credits for the solar power they export, but the value of these credits varies significantly depending on your utility company and when your solar system was installed.

For customers with the major investor-owned utilities (PG&E, SCE, and SDG&E), new solar installations after April 15, 2023 fall under ‘NEM 3.0,’ which provides hourly export credits that change throughout the day based on grid demand. These credits are typically worth much less than your retail electricity rate – around 3-5 cents per kWh during annual true-ups. However, if you submitted a complete interconnection application before April 15, 2023, you may be grandfathered under the more favorable NEM 2.0 rules, but you cannot increase your system size or decrease it by more than 20% without losing this benefit.

Municipal utilities like LADWP offer different terms, with LADWP providing 1:1 net metering where credits can roll over indefinitely. SMUD offers a fixed export rate of 7.4 cents per kWh, while Imperial Irrigation District settles excess credits monthly at about 7 cents per kWh. The key consideration for homeowners is that newer Net Billing programs generally provide lower compensation for excess solar production, making battery storage and energy efficiency improvements more valuable for maximizing your solar investment.