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California Solar Incentives & Tax Credits
Every solar incentive available to California homeowners in 2026.
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Federal Tax Credit — Expired for Purchases
The 30% federal Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. Homeowners who buy a system with cash or a loan in 2026 can no longer claim it — a $12,539 system that once carried a $3,762 credit now has none.
- ✅ Solar leases and PPAs can still capture a federal credit through 2027 — the installer claims it and lowers your monthly payment
- ✅ State incentives and net metering below still apply to purchased systems
- ✕ No federal credit for cash or financed purchases placed in service after Dec 31, 2025
$2,000
California State Incentive
California offers property tax exclusion for solar installations.
Net Metering in California
California has Modified Net Metering net metering. Your top utility, Pacific Gas & Electric, credits you for excess solar power fed to the grid.
Policy Type
Modified Net Metering
Electricity Rate
$0.220/kWh
Top Utility
Pacific Gas & Electric
Utility Net Metering Policies in California
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| Pacific Gas & Electric | $0.220 | Modified Net Metering | No overall limit |
| Southern California Edison | $0.220 | Modified Net Metering | No overall limit |
| San Diego Gas & Electric | $0.220 | Modified Net Metering | No overall limit |
| Pacific Gas & Electric (PG&E) | $0.220 | Modified Net Metering | No overall limit |
| SMUD | $0.180 | Full Retail | No overall limit |
| Los Angeles DWP | $0.220 | Full Retail | No overall limit |
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