Solar Incentives Available in California (2026)
Southern California homeowners can still take advantage of meaningful incentives that lower the cost of going solar — especially when you combine solar panels with battery storage. While the federal homeowner tax credit is no longer available for new solar systems installed in 2026, several state and local programs help make solar + storage affordable and valuable.
Federal Solar Tax Credit
- What’s Current -
The federal Residential Solar Investment Tax Credit (ITC) that once let homeowners deduct 30% of solar installation costs no longer applies to systems installed after December 31, 2025. That means if a solar system is installed in 2026 and owned by the homeowner, the traditional federal tax credit is not available.
However, some companies offering lease or subscription models may still access federal tax incentives because the company owns the system, not the homeowner. If your company does not offer these products, you should not represent this as a homeowner benefit.
California Property Tax Exclusion (Active Solar Energy System)
California offers a property tax exclusion for solar installations: the value added to your home by installing solar panels is not added to your property’s assessed value, meaning your property tax won’t go up because of your solar system.
This incentive is scheduled to be in effect for systems installed through at least the end of 2026, with a current sunset date of January 1, 2027.
SGIP — Self-Generation Incentive Program (Battery Rebates)
The Self-Generation Incentive Program (SGIP) offers rebates for residential battery storage systems. This is one of the most significant incentives still available for homeowners adding batteries (with or without solar).
Key SGIP Highlights:
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Helps cover the cost of battery storage installations
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Rebates vary by program category (general, equity, resiliency)
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Can significantly reduce upfront battery costs
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Eligibility includes most utility customers (PG&E, SDG&E, SCE) with varying terms based on income level and location
Some categories can cover a very large portion of the battery cost for qualifying homeowners (e.g., income-qualified or resilience categories).
San Diego Community Power — Solar Battery Savings Program
San Diego Community Power offers Solar Battery Savings, a program that helps reduce the upfront cost of installing a solar + battery system (or just a battery) and provides ongoing savings.
What You Get:
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Upfront rebates to lower initial installation costs
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Performance payments when your battery discharges during high-demand weekday hours
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Backup power and increased self-consumption of solar energy
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Savings throughout peak pricing periods and during outages
This local incentive can be stacked with statewide rebates for greater overall value.
Disadvantaged Community Solar (DAC-SASH)
The DAC-SASH program helps eligible low-income homeowners living in certain disadvantaged communities get rooftop solar at greatly reduced cost — often covering most or all of the system cost.
This is administered through nonprofit partners and can work alongside other rebates and incentives to make solar virtually free for qualified households.
Other Local + Utility Programs
Depending on your city or utility, additional small rebates or offers may be available, such as:
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Green building permit fee reductions
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Municipal utility solar incentives
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Demand response savings programs (Ask our team for local opportunities in your area.)
Why Solar + Storage Still Makes Sense
Even without the federal homeowner tax credit for new installs:
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Solar + storage can meaningfully reduce your electric bills
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High retail electricity rates (especially with SDG&E) make self-generation valuable
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Batteries increase self-consumption value under modern net billing
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Incentives like SGIP and SDCP rebates still deliver substantial savings
Frequently Asked Questions (FAQ)
Is the federal solar tax credit still available?
No — the homeowner federal tax credit (30%) no longer applies to systems installed after Dec 31, 2025.
What if I install in 2025?
Systems installed and placed in service by Dec 31, 2025, may still qualify under old rules.
Does California offer a solar tax credit?
California does not currently offer a direct income tax credit for solar installations, but it does offer a property tax exclusion and other rebate programs.
Can I still get rebates for batteries?
Yes — programs like SGIP and San Diego Community Power rebates continue to offer significant incentives for residential battery storage.
Are there income-based rebate programs?
Yes — SGIP has enhanced rebates for income-qualified households and resiliency categories, and programs like DAC-SASH provide deep discounts for eligible homes.