Yuba City, 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. Since California property tax rates average around 0.75% of assessed value, and solar systems can add $15,000-$30,000+ in property value, this exclusion typically saves homeowners $100-$225+ per year. 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 doesn’t cover solar pool heaters, hot tub heaters, or passive solar features.

Most homeowners don’t need to file any paperwork – the exclusion is automatically applied when the county assessor receives your building permit. The program is currently set to expire on January 1, 2027, so systems must be installed before this sunset date. If you’re buying a newly constructed home with solar already installed, you may need to file a special form (BOE-64-SES) to claim the exclusion, but only if the home was completed after January 1, 2008, and you purchase it before it’s assessed for property taxes.

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 households.

Eligible homeowners can receive up to $3 per watt in fixed, capacity-based incentives. For example, if you install a 5-kilowatt solar system, you could receive up to $15,000 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 designed to make solar energy storage more affordable for low-income households and disadvantaged communities. This $630 million fund provides rebates specifically for battery storage systems, addressing the criticism that previous solar programs mainly benefited higher-income families. The program operates under the Self-Generation Incentive Program (SGIP) and was established through Assembly Bill 209 in 2022.

The rebate amounts vary based on your location and income status, ranging from $150 to $1,000 per kilowatt-hour of battery capacity installed. Higher rebate amounts of $850 or $1,000 per kWh are available for customers enrolled in CARE or FERA utility assistance programs, those living in disadvantaged communities, California tribal areas, or regions with high fire risk or frequent power outages. To qualify, you must be enrolled in California’s CARE/FERA program, live in a designated disadvantaged community, or reside in a California tribal area. Additionally, customers in these qualifying groups 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 programs.

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 the electricity is sent to the grid.

The financial benefits depend on your utility provider. Most major California utilities (PG&E, SCE, and SDG&E) operate under ‘NEM 3.0,’ which began April 15, 2023. Under NEM 3.0, export credits change every hour based on the grid’s avoided costs, typically ranging from 3-5 cents per kWh during annual true-ups. Some utilities offer different rates: Imperial Irrigation District pays $0.0698 per kWh monthly, while Sacramento Municipal Utility District provides 7.4 cents per kWh. Los Angeles Department of Water & Power still offers 1:1 net metering, crediting exports at full retail rates.

Important timing considerations affect your benefits. If you submitted a complete interconnection application before April 14, 2023, you may qualify for the more favorable NEM 2.0 program. However, you cannot increase your system size or decrease it by more than 20% without losing this grandfathered status. Most utilities settle excess credits annually during your anniversary month, though some like Imperial Irrigation District settle monthly. LADWP allows credits to roll over indefinitely without expiration.