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California Solar Incentives & Tax Credits
Every solar incentive available to California homeowners in 2026.
30%
Federal Investment Tax Credit (ITC)
The Residential Clean Energy Credit lets you claim 30% of your total solar installation cost as a credit against your federal income taxes. On a $12,539 system, that's a $3,762 credit.
- ✅ No dollar cap — applies to full system cost including installation
- ✅ Available through December 31, 2032
- ✅ Unused credit can carry forward to future tax years
- ✅ Applies to batteries added at the same time as solar
$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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