California Solar Incentives
California Solar Tax Incentives Top the Charts
With one of the sunniest climates in the world, it’s no surprise that California is the No. 1 solar state in the country.1 The Golden State is setting the gold standard for clean energy policy,2 with an ambitious goal to run on 100% carbon-free energy by 2045.
California Solar Incentives, Rebates & Tax Credits
| Solar Savings Types | Value of Savings |
|---|---|
| Federal Solar Tax Credit | 26% of the final cost of the solar system |
| Local utility solar rebates | $0.20 to $1.25 per watt |
**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 solar system from Sunrun.
Home Solar Battery Rebate: Self-Generation Incentive Program (SGIP)
There’s no better place to purchase a solar battery than California and no better time than now. The state’s Self-Generation Incentive Program (SGIP) offers rebates to California households for a solar battery and has been extended to 2025.3
Customers of PG&E, SCE, SoCalGas and SDG&E utilities are eligible for this rebate, which can be as high as $400 per kilowatt-hour.4 Rebate amounts will depend on battery size and time of purchase. As more batteries are installed, the rebate amount will decline. Visit the SGIP Program Metrics dashboard to see how much funding is currently available. To get the most out of California’s SGIP, the time to go solar is now. Learn more about Sunrun’s Brightbox home battery.
California Net Energy Metering: NEM 2.0
Net energy metering is a compensation mechanism that helps you go solar. Simply put, your electric company will credit you for any excess electricity your panels produce. These credits can go towards paying for your next monthly utility bill.5
Recently, California has been shifting to Time-of-Use (TOU) rates under the recently passed Net Metering 2.0 policy.6 TOU rates make electricity more expensive during peak hours like late afternoon and early evening, the times when households need electricity most and when solar customers may have to rely on some grid power.
Sunrun has a way to help you manage California’s TOU rates. Our home solar battery system, Brightbox, provides power during peak demand times so that you don’t need to rely on grid electricity when rates are highest. Even better, our smart battery storage can maximize your energy credits by dispatching power during peak times when electricity is the most expensive. By buffering you from unpredictable utility bills while maximizing your energy credits, Sunrun’s premium battery storage is the optimal solution for NEM 2.0. Learn more about solar battery storage in California.
Extra Rebates From Your Local Utility
Some municipal utilities like Sacramento Municipal Utility District (SMUD)7 offer solar rebates based on the estimated performance of the home solar system. Go Solar California lists electric companies that provide solar panels and/or solar battery storage incentive programs.
Property Tax Exemption for Residential Solar Systems
Homeowners understand the value of property tax exemptions, so it’s good news that California is offering a tax exemption for residential solar systems until the end of 2024.8 And since purchased solar systems may increase the value of your home by up to $15,000 on average,9 you’ll get even more bang for your buck if you decide to move.
Sales and Use Tax Exemption
The Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment10 is a welcome addition to the other incentives available in the Golden State. That means you can pocket the extra 7.25% state sales tax you would normally pay when you buy a home solar system and battery.
Federal Solar Tax Credit*
You’re also eligible for the federal solar tax credit if you buy your own home solar system outright. Homeowners who have a solar energy system installed through December 31, 2020 will be eligible for the 30% federal solar tax credit for the final cost of the system.12 That means if you purchase a 6-kilowatt system for $18,300, you’ll pay $12,810 after you receive your tax credit.
The federal solar tax credit is scheduled to step down to 26% in 2020, then 22% in 2021. After 2021, the tax credit for residential solar ends. Learn more about federal solar incentives.
Go Solar Your Way with Sunrun
At Sunrun, we understand that everyone's financial situation is different. Whether you want to own your system and your solar incentives or simplify them with a solar lease for as little as $0 down, we offer a range of flexible financing options—all of which help you claim your slice of California sun.
Join over a quarter million American households who have gone solar with Sunrun. Whenever you’re ready, our solar advisors are here for you. To get started, get your free quote today.