✅ Federal Incentives
All federal benefits apply in California:
30% Investment Tax Credit (ITC)
MACRS + bonus depreciation
IRA Direct Pay for nonprofits
✅ State Incentives
⚡ Property Tax Exclusion
100% value exclusion on active solar & storage systems installed before Jan 1, 2027
Prevents solar from increasing property tax assessments (LINK)
⚡ Self-Generation Incentive Program (SGIP)
Rebates for installing battery storage with solar
Typically ~$2/W, tiered by capacity, income, and wildfire risk (LINK)
⚡Disadvantaged Communities – Single‑Family Solar Homes (DAC‑SASH)
Covers systems 1–5 kW in top 25% disadvantaged communities
$3/W incentive, up to ~$15,000 per household
Open through 2030 (LINK)
⚠ No State Tax Credit or Sales Tax Exemption
California does not offer other state-level tax credits or sales tax exemptions for solar installations.
🏛️ PACE Financing
Property-assessed financing available statewide- repayment via property taxes over 10–30 years (LINK)
✅ Utility & Local Incentives
Net Billing (NEM 3.0) – Replaced previous net metering as of April 15, 2023
Export compensation based on wholesale avoided-cost rates (~25% of retail), with import/export timing & location adders
Encourages battery use due to reduced buyback rates (LINK)
Local Programs
Alameda Municipal Power: $500 rebate for income-qualified homeowners
Rancho Mirage: rebates for residential battery storage ($500–$1,500)
San Diego County: permit fee waivers and expedited review
SMUD, LADWP, Burbank Water & Power, SoCalGas: various rebates or incentives (LINK)
✅ Policy & Standards
✅ Nonprofit Incentives
Nonprofits benefit via IRA Direct Pay, receiving up to 30% cash reimbursement regardless of tax liability.