California Solar Incentives 2026

Q: How do I find local solar installers in California?

Search 'solar installer near [your city]' on Google, or use Energy.gov's installer locator. Get 3+ quotes before deciding.

Federal & State Tax Credits

Incentive	Value	Who Qualifies	Notes
Federal Residential Tax Credit (Section 25D)	Expired	N/A (expired 12/31/2025)	The One Big Beautiful Bill Act eliminated this credit. No longer available for residential systems.
California state rebates	Varies	Income-qualified households	SOMAH, REAP, and SASH programs. Check DSireUSA.org for current amounts.
Property Tax Exemption	100%	Homeowners	Solar systems exempt from CA property tax increases.
Sales Tax Exemption	7.25%+	All consumers	Varies by county. Some offer partial exemptions on solar equipment.

Net Metering in California

Net Metering 3.0 (NEM 3.0)

California's net metering rules changed on April 14, 2023. Customers who installed systems before April 14, 2023 stay on favorable net metering rates. New systems fall under NEM 3.0, which offers lower per-kWh credits.

Utility	Service Area	NEM Credit Rate (2026)
PG&E	Northern/Central CA	~$0.082/kWh (varies by rate schedule)
SCE	Southern CA	~$0.078/kWh (varies by rate schedule)
SDG&E	San Diego	~$0.084/kWh (varies by rate schedule)

Pro tip: If you own a home and can install before rates become less favorable, lock in grandfathered rates.

Plug-and-Play Solar Laws in California

California's Solar Rights Act (Civil Code §714) prevents HOAs and property owners from outright prohibiting solar energy systems. This protects homeowners from HOA bans, but does not by itself give renters an automatic right to install panels without landlord permission.

SB 868 (Wiener, 2026 — Plug and Play Solar Act): A bill currently moving through the California legislature (passed Senate Energy Committee 12-0 in March 2026) would exempt portable solar devices up to 1,200W from interconnection requirements. As of March 2026 this bill has not yet been signed into law. Watch SB 868 on leginfo.legislature.ca.gov for updates.

Current Best Approach for Renters:

Portable (non-permanent) solar panels that don't modify the property are generally permitted without landlord approval in most states
Check your lease — most leases prohibit "permanent alterations," not portable devices
California's existing Civil Code §714 limits HOA solar restrictions
Community solar programs let renters subscribe without installing anything

Best for renters: Portable 400-800W balcony solar kits from Amazon, EcoFlow, or Renogy.

HOA Rules in California

California's solar access rights law (CC&R) protects homeowners' right to install solar despite HOA restrictions—but HOAs can still regulate aesthetics.

What HOAs Can't Do:

Prohibit solar installation altogether
Charge unreasonable approval fees
Require non-glare roofing when standard options exist

What HOAs Can Require:

System design that minimizes visual impact (e.g., rear-roof placement)
Professional installation and permitting
Reasonable design review (max 45 days)

Strategy: If your HOA denies solar, contact the California Energy Commission or review Civil Code §714 for your rights.

Community Solar Programs in California

If you can't install on your own property (renter, no roof space, shade), community solar lets you buy shares of a shared solar garden.

Programs:

Sunrun Community Solar: Bay Area, LA, San Diego. Typical savings 5-15% on electricity.
Sunshare: Northern CA. Subscription model ($30-60/month).
Local utility programs: Check PG&E, SCE, SDG&E websites for pilot programs.

California Solar Installation Costs (2026)

System Size	Avg. Cost	Est. Cost (No Federal Credit)	Payback (years)
3 kW	$9,000	$6,300	7-9
6 kW	$16,500	$11,550	7-9
10 kW	$26,000	$18,200	7-9

Costs vary by region, installer, and equipment. These are 2026 averages for California.

Best Solar Products for California (UL 3700 Certified)

For Renters (Balcony/Portable):

EcoFlow Delta 2: 1024Wh battery, 400W panels. Check price
Jackery Solar Generator 1000 Plus: Expandable. Check price
Renogy 400W Balcony Kit: Affordable, plug-and-play. Check price

For Homeowners (Rooftop):

Sunrun: Full-service lease/buy option. Typical cost $16.5K for 6kW.
Vivint Solar: Financing + monitoring. ~$16K for 6kW.
Tesla Powerwall + Solar: Premium option with battery backup. ~$25K+ for 6kW system.

Frequently Asked Questions

❓ Can I install solar as a renter in California?

It depends. California's Solar Rights Act (Civil Code §714) prevents outright HOA bans on solar, but does not automatically give renters the right to install without landlord permission. Portable plug-in panels that don't permanently modify the property are generally acceptable — check your lease. SB 868 (the Plug and Play Solar Act), pending in 2026, would explicitly legalize small plug-in solar for renters if signed into law. Community solar is available today with no installation required.

❓ What's the difference between NEM 2.0 and NEM 3.0?

NEM 2.0 (grandfathered): ~$0.30/kWh export rate. NEM 3.0 (new systems after Apr 2023): ~$0.08/kWh. Huge difference! If your home qualifies for NEM 2.0, install ASAP.

❓ Will my HOA block my solar installation?

California law protects your right to solar. HOAs can't prohibit it, but can require reasonable design review. Worst case: place panels on rear roof or use black frames to minimize visibility.

❓ How much will my electricity bill decrease?

Depends on system size and usage. Average: 50-100% reduction. A 6kW system in California typically saves $1,200-2,000/year. Check your current bill to estimate.

❓ Is balcony solar worth it for renters?

Yes if you plan to stay 3+ years. A 400W kit costs $800-1,200 and saves $200-400/year. Payback: 2-6 years. Plus you can take it with you when you move.

❓ What happened to the federal solar tax credit?

The federal residential solar tax credit (Section 25D) expired at the end of 2025 after the One Big Beautiful Bill Act was signed into law. It is no longer available for residential installations. Focus on state rebates, net metering, and community solar programs instead.

❓ How long do solar panels last?

25-30 years typical. Most warranties cover 25 years at 80%+ output. Inverters last 10-15 years and may need replacement mid-life.

❓ Will solar panels damage my roof?

Professional installation doesn't damage roofs. Installers use flashing + weatherproofing. If replacing your roof, do it before solar. If your roof is old, replace first, then install solar.

❓ Can I go fully off-grid with solar in California?

Yes, but it's expensive. You'd need: large battery bank ($10K+), oversized solar array, backup generator. Grid-tied with battery backup is cheaper ($3-5K extra).

❓ How do I find local solar installers in California?

Search "solar installer near [your city]" on Google, or use Energy.gov's installer locator. Get 3+ quotes before deciding.

Explore More Solar Resources

Interested in other states? Check out our guides: