California Solar Incentives in 2026: What’s Left
If you’re searching for California solar incentives in 2026, start with the hard truth: the federal 30% tax credit ended December 31, 2025. But a few things are still on the table — a property-tax exclusion most owners get, and income-qualified programs that can cover much of the cost for those who qualify. Here’s what remains, who it’s for, and why the Net Billing Tariff is not an incentive.
Get a free estimate
- The federal 30% credit ended for systems placed in service after Dec 31, 2025.
- The property-tax exclusion (a system generally doesn’t raise your assessed value) is scheduled through Jan 1, 2027 — confirm current law.
- Income-qualified programs (DAC-SASH, SGIP Equity) can be significant — but eligibility and open budgets vary.
- Net Billing (NEM 3.0) is a tariff, not an incentive — it sets your export credit, not a rebate.
The one that ended: the federal tax credit
For years the headline incentive was the federal Residential Clean Energy Credit — 30% of an owner-bought system’s cost back on your taxes. It ended for property placed in service after December 31, 2025. A 2026 cash or loan buyer pays a gross, unsubsidized price. (A lease/PPA provider may still claim a separate business credit and reflect it in pricing, but you don’t file for it.) See what the end of the federal credit means.
The one almost every owner gets: the property-tax exclusion
California’s Active Solar Energy System Exclusion (Revenue & Taxation Code §73) means a qualifying new solar system generally does not increase your assessed value or property tax, even though it can raise your home’s market value. It’s currently scheduled to sunset on January 1, 2027 (with grandfathering for systems that qualify before then), and an extension bill has been discussed — so confirm the current law. This is a tax exclusion, not a check. See the property-tax exclusion explained.
Income-qualified programs: the big ones left
The most substantial dollars in 2026 are targeted at income-qualified households:
DAC-SASH — up to $3/W
For income-qualified homeowners in disadvantaged communities within participating investor-owned utility territories (SCE, PG&E, SDG&E), scheduled through 2030. Amounts and eligibility are program-defined — check the official page.
SGIP — battery rebates
The Self-Generation Incentive Program funds storage, but availability is category- and utility-specific. Income-qualified (Equity) budgets differ from the general market, and any budget may be open, closed, reserved or waitlisted when you apply. See SGIP battery incentives.
Which programs may be relevant to you?
Pick your utility and situation. The tool lists programs that may apply and links to the official page for each — it does not determine your eligibility, and program budgets and rules change, so always confirm on the live source.
2026 incentive finder
Potentially relevant programs — verify each on the official page.
Educational tool, not an eligibility determination or tax/financial advice. Program availability, budgets and deadlines change frequently — confirm current status on each official page before including any program in your project economics.
Net Billing (NEM 3.0) is not an incentive
People often list “net metering” as a solar incentive. It isn’t a rebate or credit toward your purchase — it’s the tariff that sets how much you’re paid for the electricity you export. Under NEM 3.0 export credits are time-varying and often low during solar-heavy midday hours, which is why batteries matter now. It affects your ongoing bill, not your upfront cost. See NEM 3.0 explained.
LADWP is different
Most of the programs above are CPUC programs for the investor-owned utilities. LADWP is a municipal utility and runs its own solar and battery programs on its own terms — DAC-SASH (a CPUC program) does not apply to LADWP customers; SGIP may — LADWP is itself an SGIP program administrator — so check the live SGIP tracker. If you’re served by LADWP, check the current LADWP offerings directly. See LADWP solar & battery incentives.
What this means for an LA homeowner
Don’t bank on the federal credit
It’s gone. Whether solar pencils out now depends far more on your electricity rate than on incentives.
Verify every program on the day
Budgets, deadlines and eligibility change often. Treat any rebate as real only after you confirm it on the official page — never let a quote assume one.
Know your utility first
Your options differ sharply between an IOU (SCE) and LADWP. Start there.
Sources & methodology
Primary and authoritative sources for this page: IRS — Residential Clean Energy Credit · CA BOE — Active Solar Energy System Exclusion · CPUC — Solar in Disadvantaged Communities (DAC-SASH) · SGIP — live program metrics / tracker · DSIRE — California incentive database. Figures and program statuses are current as of publication — verify time-sensitive items (rates, tariffs, incentive budgets) on the official source before relying on them.
Frequently asked
Is there still a solar tax credit in California in 2026?
The federal 30% Residential Clean Energy Credit ended for systems placed in service after Dec 31, 2025, so systems placed in service after Dec 31, 2025 aren’t eligible (an eligible system placed in service during 2025 may still be claimed on the applicable 2025 tax return). California has no equivalent statewide cash credit, but it does have a property-tax exclusion and income-qualified programs. Always confirm the current status of any program before relying on it.
Does solar raise my property taxes in California?
Generally no. Under the Active Solar Energy System Exclusion (R&T §73), a qualifying new solar system doesn’t increase your assessed value or property tax, even if it raises market value. The exclusion is currently scheduled to sunset on January 1, 2027 — confirm the current law. See the property-tax exclusion explained.
What is DAC-SASH and can I get it?
DAC-SASH offers up to $3 per watt to income-qualified homeowners in disadvantaged communities within participating investor-owned utility territories (SCE, PG&E, SDG&E), scheduled through 2030. Eligibility is program-defined, so check the official CPUC page. It generally does not apply to LADWP customers.
Are SGIP battery rebates available in 2026?
It depends. SGIP availability is category- and utility-specific — income-qualified (Equity) budgets differ from the general market, and any budget may be open, closed, reserved or waitlisted when you apply. Check the live SGIP tracker before including a rebate in your numbers. See SGIP battery incentives.
Is net metering an incentive?
No. Net metering and the Net Billing Tariff (NEM 3.0) are billing methods that set how your exported solar is credited — not a rebate or credit toward your purchase price. Under NEM 3.0 export credits are time-varying and often low during solar-heavy midday hours, which is why batteries matter. It affects your ongoing bill, not your upfront cost.
Related reading
Sources & methodology
Figures on this page come from the primary sources below and, where noted, from Cali Energy calculations using the stated assumptions. Rates, incentives, and program terms change; each was verified August 4, 2026.
See what actually applies to you
Get an itemized 2026 estimate from a licensed local installer — with any incentive verified on the official source, not assumed.
Get a free estimatePrepared by Cali Energy, August 4, 2026. This article is for general educational purposes only and is not legal, tax, financial, engineering, or utility advice. Rates, incentives, codes, permit requirements, equipment specifications, prices, and program terms may change; figures and timelines are estimates, not guarantees. Confirm current requirements with the applicable utility, AHJ, program administrator, manufacturer, or a licensed professional. See our Content Disclaimer. Cali Energy · 19201 Parthenia St Unit E, Northridge, CA 91324 · CSLB #1032379 (B, C-10, C-39)