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California Solar Incentives (2026)

California homeowners qualify for the 30% federal solar tax credit. Net metering policy: Full Net Metering. Average payback period: 5.5 years.

30%

Federal ITC

None

State Tax Credit

None

State Rebate

Full Net Metering

Net Metering

Federal Solar Incentives (Available in California)

Federal Solar Investment Tax Credit (ITC)

Tax Credit

30% of system cost

The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.

Expires: 2034-12-31

California-Specific Solar Incentives

California Net Energy Metering (NEM 3.0)

Net Metering

Time-of-use export rates

California's NEM 3.0 credits solar exports at time-of-use rates. Paired with battery storage, homeowners can maximize savings.

Self-Generation Incentive Program (SGIP)

Rebate

Up to $1,000/kWh for battery

SGIP provides incentives for installing energy storage systems paired with solar panels.

California Solar Overview

Peak Sun Hours

5.8 hrs/day

Avg Payback Period

5.5 years

20-Year Savings

$58,200

Electricity Rate

31.22¢/kWh

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Data verified March 2026 · Source: DSIRE, NREL, EIA