Redding, 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 that when you add solar to your existing home, your property’s assessed value won’t increase due to the solar installation. Essentially, the county assessor treats your solar system as if it has no value for property tax purposes, keeping your annual property tax bill the same as before installation.

The financial benefit varies by home but can save homeowners hundreds to thousands of dollars annually in property taxes. For example, if your solar system adds $30,000 in value to your home and your local property tax rate is 1.2%, this exclusion would save you $360 per year in property taxes. The exclusion applies to various types of active solar energy systems including rooftop solar panels for electricity, solar water heating systems, and solar space conditioning systems. However, it does not cover solar pool heaters, hot tub heaters, or passive solar features.

Most homeowners don’t need to file any paperwork to receive this benefit – the exclusion is automatically applied when your county assessor receives your solar installation building permit. The program is currently extended through the 2025-26 fiscal year and is scheduled to sunset on January 1, 2027. There are no residency requirements, income limits, or restrictions on system size. If you purchase a newly built home that already includes solar, you may be eligible for the exclusion as the initial purchaser if you file the appropriate form (BOE-64-SES) and meet specific timing requirements.

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, SCE, or SDG&E, be enrolled in or eligible for the CARE or FERA income-qualified utility programs, and live 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 if your area is eligible.

California’s Equity Fund is a state program that provides battery storage rebates specifically designed to help low-income households and disadvantaged communities access clean energy storage. This $630 million fund was created in 2022 under Assembly Bill 209 to address the fact that previous solar incentive programs primarily benefited higher-income households.

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

The rebates are administered through the Self-Generation Incentive Program (SGIP) and are available to customers of the three major California utilities: Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). This program makes battery storage more affordable for communities that have historically faced barriers to accessing clean energy technology.

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 system was installed.

For customers with systems installed after April 15, 2023, most major utilities (PG&E, SCE, and SDG&E) use ‘NEM 3.0’ which provides hourly export credits that change based on grid demand and time of day. These credits are typically worth much less than what you pay for electricity – roughly 3-5 cents per kWh during annual true-up periods. However, some utilities offer better rates: Imperial Irrigation District pays $0.0698 per kWh monthly, SMUD pays 7.4 cents per kWh, and LADWP still offers 1:1 net metering where exports are valued the same as what you pay for electricity.

Important considerations include that customers who submitted complete applications before April 14, 2023 may be grandfathered under the more favorable NEM 2.0 rules, but any system size changes could disqualify this benefit. Most utilities settle excess credits annually, though some like IID and SMUD settle monthly. LADWP customers can roll credits indefinitely, while others receive minimal compensation for unused credits during their annual true-up period.