The Best California Solar Tax Credits, Incentives & Rebates for 2026

California has long been a leader in solar energy adoption, thanks in part to generous incentives, strong net metering policies, and an overall commitment to renewable energy. While the solar landscape has changed in recent years—particularly with the transition to NEM 3.0—there are still solar tax credits, rebates, and financing programs that make going solar a smart financial decision.

In this updated guide, we break down the most important residential solar incentives available in California in 2025. 

Let’s dive into what’s available and how you can take full advantage of California’s solar incentives this year.

California Solar Tax Credits & Incentives 

Active Solar Energy System Property Tax Exclusion

Installing solar panels can and usually does increase the value of your home, but it won’t increase your property taxes. California offers a property tax exclusion for solar panel installations. This exclusion means your solar panels are not included in your property tax assessment, ensuring they don’t increase what you owe. The Active Solar Energy System Exclusion will be available for systems installed before January 1, 2027, which is coming up fast! If you don’t want to miss out, start your solar installation soon. 

California Solar Rebate Programs 

Self-Generation Incentive Program (SGIP)

The SGIP provides rebates to help Californians install energy storage devices, including solar batteries. 

The rebates are available to  electric and/or gas customers of PG&E, SCE, SoCalGas, and SDG&E, but you must meet program requirements to qualify for rebates. Income-eligible customers and those who are medically vulnerable or live in a high-risk fire area are prioritized and will receive higher rebate amounts. 

If you’re interested in SGIP rebates for solar battery storage, reach out to Premo Solar! We can help you determine whether you qualify for this incentive. 

Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) Program

The DAC-SASH program offers incentives to low-income homeowners in disadvantaged communities. Eligible homeowners can receive $3 per watt for solar installations up to 5 kilowatts (kW). This can cover a significant portion of the installation cost. To be eligible, recipients must live in a designated disadvantaged community and meet income qualifications.

Net Metering in California: What’s Happening in 2026?

As of April 2023, California no longer offers net metering. Instead, solar customers can participate in net billing (commonly referred to as Net Energy Metering or NEM 3.0).  

NEM 3.0 allows solar customers to export the excess power they generate to the electric grid. Solar customers are credited for the power they send to the grid—but not at the same rate the grid sells it for. Instead, they’re credited at a much lower rate that’s calculated based on wholesale electricity cost predictions instead of retail rates. 

Since wholesale electricity rates vary based on supply and demand, so do net billing rates. Your exact rate will vary depending on the time of day, the day of the week, and the month. 

Is Solar Still Worth it with NEM 3.0 in California? 

We won’t pretend the shift to NEM 3.0 didn’t reduce the value of solar panels for California homeowners. But it didn’t eliminate them. Solar is still a worthwhile investment that will significantly reduce your monthly electric bills and protect you against rising costs. If you install solar battery storage, you’ll be able to store and use excess electricity yourself instead of sending it to the grid at a reduced rate, increasing your savings and speeding up your return on investment. 

How Much Can You Save with California Solar Incentives in 2026? 

Premo Solar can help you take advantage of solar incentives to maximize your savings when you install a home solar system. We’re a local solar company installing sleek, premium-quality solar energy systems in Monterey, Carmel, Santa Cruz, and Salinas, California. If you have questions about California solar rebates and incentives in 2026, reach out to us today. We’re here to help make your solar journey as simple, stress-free, and profitable as possible!

Don’t miss out on solar incentives in 2026! Call 831-901-3352 or contact us a free consultation.