California’s $280 Million SGIP Program Offers Free Solar + Battery for CARE-Qualified Homeowners

Selva Arellano
Jun 10
9 min read

Effective May 20, 2025, California launched a major new incentive that can cover the full cost of solar panels and home battery systems for low-income households. If you’re a homeowner on a discounted CARE utility rate in California (like many San Diego families), this $280 million SGIP program could let you go solar with battery backup at no out-of-pocket cost – and Sunny Solar Power is here to help you seize this opportunity.

What Is the New SGIP Solar & Battery Program?

In late May 2025, the California Public Utilities Commission (CPUC) announced a $280 million statewide initiative to help low-income residents install solar panels and battery storage at home. This funding is part of the state’s Self-Generation Incentive Program (SGIP), under a new Residential Storage and Solar Equity (RSSE) budget. Starting June 2, 2025, the program began accepting applications across California. It’s designed so that when you pair the SGIP rebate with the federal 30% tax credit, it can cover 100% of the installation cost for an eligible solar+battery system. In other words, qualified low-income homeowners can essentially get a solar power system with home battery for free through this program.

This new SGIP effort expands on prior state clean energy programs. In the past, SGIP offered generous “Equity Resiliency” rebates that could make battery backups nearly free – but those were mainly limited to high wildfire-risk areas or households impacted by Public Safety Power Shutoff (PSPS) outages. Now, for the first time, similar incentives are available statewide based on income, regardless of whether you live in a fire threat zone. The goal is to give more Californians resilient, renewable energy at home, reducing strain on the grid and improving energy equity.

Huge Incentives Mean Little to No Cost Installation

How big are the incentives? Very generous. Eligible homeowners can receive up to $3,100 per kilowatt (kW) of solar panels installed, and $1,100 per kilowatt-hour (kWh) of battery storage. For a typical single-family home, the program will fund a system size of about 5 kW of solar and a 15 kWh battery. That works out to as much as ~$15,500 toward solar and ~$16,500 for a battery – around $32,000 of total incentive value. Combined with the federal Investment Tax Credit, it’s designed to cover the full cost of a standard solar+storage system for low-income households. In plain terms, that means you could go solar with backup power with no upfront cost.

A typical CARE customer’s monthly electric bill might drop from about $150 to roughly $58 after adding solar panels and a home battery under this program. By generating and storing your own energy, you can save an estimated 55–65% on electricity bills while still having reliable backup power during outages.

These incentives make solar extremely attractive for those who qualify. Some key benefits for homeowners include:

$0 Upfront Cost: With rebates covering most or all costs, no down payment is required to install solar and storage. Even credit checks are often not needed for program participants, removing financial barriers.
Lower Energy Bills: You’ll enjoy immediate savings on your utility bills. In fact, CARE customers who add solar + battery could cut their electric bills by more than half on average. You’ll generate your own cheaper solar power and use the battery to avoid expensive peak rates.
Backup Power in Outages: A home battery provides energy security. If there’s a blackout (for example, due to wildfires or grid issues), your battery can keep the lights on and critical appliances running.
Clean, Local Energy: By going solar, you’re reducing your reliance on the grid and fossil fuels. You’ll be contributing to a greener California and improving local air quality – all while benefiting from state assistance.
Grid Reliability Benefits: When thousands of homes have solar storage, it helps stabilize the overall grid. Your battery can reduce strain during peak demand, which is one reason the CPUC is funding this effort. (There may even be optional programs to earn extra incentives by sharing battery power at peak times down the road.)

Overall, the SGIP rebate program is a win–win: you save money and gain peace of mind, and the community gains more clean energy and a stronger grid.

Who Is Eligible to Claim This Funding?

The new $280 million SGIP funding is aimed squarely at low-income California homeowners. The CPUC set the eligibility as households at or below 80% of the Area Median Income, which can be verified in a few ways. In practice, the simplest way to qualify is if you’re already enrolled in an existing low-income energy program:

CARE (California Alternate Rates for Energy): If you receive the CARE discount on your gas/electric bill, you meet the income criteria. This program is for households generally <=200% of federal poverty level, which aligns closely with the SGIP’s income cap.
FERA (Family Electric Rate Assistance): FERA participants (who get an 18% bill discount for being just above CARE limits) also qualify for the SGIP incentives.
Other Qualifying Programs: Households that went through income verification for SASH or DAC-SASH solar programs or the ESA energy efficiency program are eligible too. Essentially, if you’ve been approved for any major low-income assistance program, you should be eligible for this solar+battery rebate.

Even if you’re not currently on CARE/FERA but think you might qualify (for example, based on income or if you reside in certain affordable housing), you can apply for those programs or discuss eligibility with us. Sunny Solar Power can help review your situation to see if you meet the requirements. Keep in mind that this incentive is geographically inclusive – it doesn’t matter where in California you live. Customers of investor-owned utilities like SDG&E, PG&E, SCE, as well as municipal utilities (LADWP, SMUD, etc.) and community choice aggregators, are all eligible to apply as long as the income criteria are met. In other words, any California homeowner with low-income status can qualify, including right here in San Diego.

One note: the program is primarily intended for households that do not already have solar panels installed. It’s about expanding solar access to new adopters who couldn’t afford it before. So if you’ve been unable to go solar due to cost, and you meet the income guidelines, now is the time!

How to Apply and What to Expect

Navigating incentive programs can be tricky, but that’s where Sunny Solar Power comes in (more on that below). In broad strokes, here’s how the SGIP solar+storage program works:

Verify Eligibility: First, confirm that you meet the income qualifications. If you’re on CARE or FERA, you’re already set. Otherwise, income documents may be needed to show you’re under 80% of the area median income. Sunny Solar Power can assist with this review.
Reserve Your Rebate: The SGIP program requires an application to reserve your share of the funding. Starting May 20, 2025, the program opened for customers to begin preparing applications, with official submissions accepted on June 2. Funding is first-come, first-served, so it’s crucial to submit as early as possible. An SGIP-approved developer/installer (like Sunny Solar Power) will help you file the paperwork electronically. We’ll handle the application process to secure your rebate.
Install Solar + Battery: Once your incentive reservation is confirmed, we proceed with designing and installing your solar panels and battery system. Under this program, a typical installation might be a ~5 kW solar array with a home battery (around 10–15 kWh capacity) – though we will customize it to your needs and usage. No money down is required from you in most cases, because the state incentive and tax credit cover the cost. (We’ll make sure you understand any fine print; for example, the SGIP rebate is often paid after installation, but as a qualified contractor we can install with minimal upfront cost and then collect the rebate on the back end.)
Enjoy the Benefits: After installation, you start saving with solar power and have backup protection in place. We’ll walk you through how to monitor your system’s performance. To fully comply with SGIP, you may need to enroll in a demand response program down the line (to help the grid during peak times), but this is generally straightforward and something we can assist with. Then simply reap the rewards: a dramatically lower electric bill and peace of mind that you have power even if the grid goes down.

Throughout this process, Sunny Solar Power will be your advocate – handling documents, answering questions, and ensuring you maximize the incentive. The application may sound technical, but don’t worry, we’ve got it covered.

Act Fast – Funds Are Limited (Don’t Miss Out!)

It’s important to emphasize that this program, while generous, has limited funding. The $280 million budget is expected to fund roughly a few thousand systems statewide. In fact, only an estimated 6,000 or so California homes will be able to get these SGIP solar+battery rebates under the current funding. Once the allocated funds are reserved, any additional applicants will be placed on a waitlist or have to wait for potential future funding.

Bottom line: if you think you qualify, do not delay. Programs like this can fill up quickly, sometimes within months or even weeks of opening. The SGIP incentives are available now (as of summer 2025), but there’s no guarantee how long the money will last. It could be exhausted well before the program’s official end date if demand is high. Historically, similar rebate programs for batteries in high-fire-risk areas were snapped up rapidly because the value was so high. This time, the opportunity is open to eligible homeowners across the entire state, so interest is expected to be enormous.

The good news is, if you’re reading this and think you might be eligible, you can get started with no risk or cost to find out. Sunny Solar Power offers a free consultation to any homeowner interested in the SGIP rebate. We’ll verify your eligibility, estimate how much system you can get covered, and even handle the application at no charge to you. There’s truly nothing to lose – even the call or visit is free.

Sunny Solar Power: Your Local SGIP Expert in San Diego

Sunny Solar Power is a San Diego-based solar company with over 15 years of experience helping local homeowners go solar. We’re not a fly-by-night operation; we’re a trusted local installer with deep roots in the community and a track record of quality service. Our team has the knowledge and know-how that homeowners can rely on for their solar needs. We’ve installed countless residential solar systems in San Diego and North County, and we understand the unique energy needs of Southern Californians – from high summer AC bills to the threat of wildfire-related outages.

Here’s how Sunny Solar Power makes your life easier when it comes to the SGIP program:

Expert Guidance: We stay up-to-date on the latest California solar incentives and policies. Our experts have studied the new SGIP guidelines inside and out, so we can clearly explain how the program works and answer all your questions. You’ll get honest advice on whether you qualify and how much funding you can receive.
Application Assistance: Paperwork can be intimidating. Our team will handle the SGIP application process on your behalf, ensuring all required documentation is submitted correctly to secure your rebate reservation. We are familiar with the program administrators and online portal, so we can fast-track your application and troubleshoot any issues.
Customized Solutions: We’ll design a solar + battery system tailored to your home’s needs. We’ll look at your current electricity usage (including your CARE discounted rates) and size the solar/battery setup to maximize your savings and resilience. And we’ll do it in a way that fits within the SGIP funding limits so that little to no money comes out of your pocket.
Professional Installation: With our long experience in San Diego, we handle the entire installation process from permits to commissioning. Our installers are seasoned professionals who take pride in quality workmanship. We’ll coordinate the installation at a time convenient for you, with minimal disruption.
Local Support and Service: Being locally owned and operated, we’re just a phone call away whenever you need support. Have a question about your system or billing after installation? Need maintenance down the road? We’re right here in San Diego to assist promptly – no call centers or long waits.

Most importantly, we offer a no-pressure, free consultation to get you started. We understand that investing in solar (even at no cost) is a big decision, and we want you to feel comfortable. Our energy consultants will assess your home’s suitability for solar, discuss your eligibility for the SGIP incentives, and provide a clear picture of the savings and benefits you can expect – all at no obligation.

Ready to Save? Call Now for Your Free Consultation!

The opportunity to install solar panels and a battery system essentially for free doesn’t come around often. California’s new SGIP funding is a game-changer for families who qualify, but the clock is ticking on these funds. If you are a CARE or FERA customer (or think you meet the income requirements) in the San Diego area, now is the time to act.

Sunny Solar Power is here to make the process easy from start to finish. Give us a call today to schedule your free home energy consultation and find out how much you could save. We’ll verify your SGIP program eligibility, answer all your questions, and provide a customized quote – with $0 down if you move forward under the program. Our team in San Diego is passionate about helping our neighbors benefit from clean energy savings, and we’ll handle everything to get you the maximum rebate available.

Don’t let this $280 million statewide program pass you by. Many Californians will jump at the chance for free solar and backup power, so claim your spot while funding lasts! Call Sunny Solar Power at (1888) SUNNY55 or contact us through our website to get started. Join the solar movement, save money, and gain energy independence – all with the help of your local experts at Sunny Solar Power. Let’s brighten your home’s future with solar energy today!