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California Solar Incentives

With Sunrun, You Can Harness the Benefits of Solar in California

#1

California is the best state for solar in the U.S.1

-11%

California solar panel price drop over the last five years.1

100%

California electricity generation that will come from clean and renewable energy sources by 2045.2​

California is well-known for its year-round sunny climate.3 But that’s just one of the many reasons homeowners choose to go solar in the Golden State. California also has some of the best solar incentives in the country. As the nation’s leading home solar and energy storage company,4 Sunrun can help you create and store your own clean, affordable energy at home while ensuring you make the most out of the state’s solar incentives.

Solar Incentives, Tax Credits, and Rebates in California*

Incentive

Value

Federal Solar Investment Tax Credit (ITC)**

The 26% federal tax credit is available for purchased home solar systems installed by December 31, 2022.5

Self-Generation Incentive Program (SGIP)

Rebate for buying and installing a solar battery along with a rooftop panel system. (Varies by utility and battery storage capacity)6

Solar Energy System Property Tax Exclusion

Property tax exclusion on the added home value from the rooftop solar system.7

Single-Family Affordable Solar Housing (SASH) Program

Eligible low-income homeowners who get their electricity from PG&E, SCE, or SDG&E could qualify for cash incentives for every kilowatt (kW) of solar power installed.8

Local Utility Company Rebates

(San Francisco and Sacramento only)

Cash incentives for installing solar panels in California. (Varies by utility)9,10

Find out If You Qualify for California Solar Incentives

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Learn the Details of California Solar Incentives

Buy and install a new home solar system in California in 2022, with or without a home battery, and you could qualify for the 26% federal tax credit. The residential ITC drops to 22% in 2023 and ends in 2024.5

Average-sized 5-kW system cost in California: $20,301

Approximate system cost in California after the 26% ITC in 2022: $15,02311

Buy a home battery along with your rooftop panels in California, and you could get a rebate for the installation of the energy storage system.

PG&E, SCE, and SDG&E customers may be eligible for this rebate, which can be as high as $1,000 per kilowatt-hour (kWh).6

Add a new home solar installation in California or build a house with a solar panel system, and your property taxes won’t increase until the end of 2024.7

Installing a system could also help you build home value. Depending on which California city you live in, your home value increase can be from 3 to 4.4%12

Eligible low-income households can receive a one-time up-front, capacity-based incentive of $3,000 for every kW of home solar installed.8

To qualify for SASH, the home must receive electrical service from PG&E, SCE, or SDG&E and be occupied by the homeowner/applicant.8

The household's total income must be 80% of the Area Median Income (AMI) or less based on its most recent income tax return.8

Through the City of San Francisco’s GoSolarSF program, residents can get a cash incentive of $100 to $2,000 per kW of home solar installed for up to 4 kW. Incentive varies by system size, location, and applicant income.9

Sacramento Municipal Utility District’s (SMUD) solar rebate program offers a solar incentive of $300 to residential customers in Sacramento who choose to install a new rooftop solar system.10 

Start Your Solar Journey off on the Right Foot

On top of all these excellent solar incentive programs, our home solar plans, with or without battery storage, start at $0 down. What's more, Pacific Gas and Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), and other California utility companies offer net energy metering (NEM) programs. These NEM programs could let you earn credits on your electric bill for the excess solar energy you produce.13 Net metering in California could help you save money on future energy costs.

Now could be an ideal time to make the switch with a California solar company like Sunrun. To check if our solar and storage products and services are a good fit for your home energy needs, use Product Selector or request a quote to get one-on-one service from our expert Solar Advisors.

Solar made better

Federal Tax Credit (ITC) schedule: 26% in 2022, 22% in 2023, and ends in 2024.

 

  • Learn about the federal tax credit
  • Find your ideal system and battery
  • Get your cost to make the switch

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*Customer’s ability to monetize rebates, incentives, and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sunrun product type, and whether a customer purchases or leases a home solar system from Sunrun.

**We recommend contacting a tax professional to most accurately determine the impact of the solar Investment Tax Credit (ITC) on your federal taxes.

 

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