Does California have a solar tax credit?

No. California offers exemptions and utility programs instead of a state income tax credit; see the list above.

Can I still get the federal solar tax credit?

No, not if you buy the system and installation is completed after December 31, 2025 ( Federal Residential Clean Energy Credit (25D)). If a company leases you the panels or sells you the power, that company may still claim a business credit and may pass some value on through the price.

California Solar Incentives and Rebates (2026)

Federal incentives

Federal · tax creditClosed

Federal Residential Clean Energy Credit (25D)

30% for systems installed 2022–2025; not available for installations completed after December 31, 2025^[1]

The 30% federal credit for homeowners who bought solar ended with Public Law 119-21. A system counts in the year its installation is completed, so paying in 2025 for a 2026 installation does not qualify.

Who: Homeowners who bought and installed a system by December 31, 2025 claim it on IRS Form 5695 for that tax year.
Deadline: December 31, 2025
Checked: November 5, 2026

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027^[2]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who: Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline: December 31, 2027
Checked: November 5, 2026

State incentives in California

State · tax exemptionEnding soon

Active solar energy system new-construction property tax exclusion (Rev. & Tax. Code 73)

Adding an active solar energy system (including storage devices that are part of it) is not treated as 'new construction', so it does not raise the assessed value. Ends January 1, 2027. Systems that qualify before then stay excluded until the property changes hands.^[3]

Subd. (i)(2): systems that qualify for an exclusion before January 1, 2027 continue to be excluded until there is a subsequent change in ownership. Subd. (g) says the section applies to lien dates for fiscal years 1999-2000 through 2025-26. The leginfo cross-reference list shows no 2026 chaptered bill amending section 73. The BOE analysis of SB 710 (https://boe.ca.gov/legdiv/pdf/0710sb090525ml.pdf) says 'any solar installation post January 1, 2027 would be considered new construction and would…

Who: Owners who add an active solar energy system to property. The system must qualify before January 1, 2027. The exclusion lasts until the next change in ownership.
Deadline: January 1, 2027
Checked: November 5, 2026

State · rebateAvailable

Disadvantaged Communities - Single-family Solar Homes (DAC-SASH)

$3/watt incentive for rooftop solar for income-qualified homeowners in disadvantaged communities^[4]

Budget: '$120 million total ($10 million per year 2019 - 2030)'. SDG&E's Solar Billing Plan page still lists DAC-SASH as a current assistance program. I could not confirm current intake on the administrator page (gridalternatives.org returned 403).

Who: Income-qualified (CARE/FERA-eligible) single-family homeowners in CalEnviroScreen disadvantaged communities or San Joaquin Valley pilot communities, in IOU territory. GRID Alternatives administers the program.
Deadline: Program budget is $10 million per year for 2019-2030 ($120 million total).
Checked: November 5, 2026

State · rebateClosed

SGIP Equity Resiliency (storage)

$1.00/Wh ($1,000/kWh) for storage (step 5). Closed.^[5]

This text is a flattened table row from the CPUC SGIP budget table (incentive in $/kWh). Closed status comes from https://www.selfgenca.com/home/program_metrics/ (Equity Resiliency Step Status: Closed for CSE, SCE, SCG and PG&E as of 11/5/2026).

Who: IOU residential or non-residential customers who meet extra eligibility criteria (equity and resiliency).
Deadline: CPUC page lists this budget as 'available through 2025'. The step tracker shows Closed in all territories as of 11/5/2026.
Checked: November 5, 2026

State · rebateWaitlist

SGIP Residential Solar and Storage Equity (RSSE)

$1.10/Wh for storage plus $3.10/W for solar (current step 6), for low-income households^[5]

The CPUC budget table lists RSSE at 'Storage: 1,100' ($/kWh) and 'Solar: 3,100/kW'. Rates and status were confirmed on the SGIP step tracker (https://www.selfgenca.com/home/program_metrics/) as of 11/5/2026, which lists 'Solar $3.10/W' and 'Energy Storage $1.10/Wh' at Step 6. RSSE AB 209: CSE, SCG and LADWP on Waitlist. AB 209 Non-POU: SCE and PG&E on Waitlist. AB 209 POU: SCE 'Open' ($1,000,000 available), PG&E Waitlist. RSSE Ratepayer: Closed in all four IOU territories. The $280M figure is…

Who: Low-income residential customers installing paired solar and storage. The CPUC has authorized $280 million for this budget.
Deadline: Ends when funds run out. As of 11/5/2026 the AB 209 sub-budgets are on waitlist in most administrator territories.
Checked: November 5, 2026

State · rebateClosed

SGIP Small Residential Storage

$0.15/Wh ($150/kWh) of battery capacity (step 7). Closed to new applications.^[6]

Step Status row for Small Residential Storage: Closed for CSE, SCE, SCG and PG&E. The incentive-rate table lists 'Small Residential Storage Step 7, Energy Storage $0.15/Wh'.

Who: IOU (PG&E, SCE, SoCalGas, SDG&E/CSE) residential customers installing battery storage.
Deadline: CPUC page lists this budget as 'available through 2025'. The step tracker shows Closed in all territories as of 11/5/2026.
Checked: November 5, 2026

State · rebateAvailable

Solar on Multifamily Affordable Housing (SOMAH)

Up to $3.50 per AC watt for capacity serving tenants and $1.19 per AC watt for common areas^[7]

Activity status comes from https://calsomah.org/ ('175+ apps in 2026, on pace for a post-launch record'). The CPUC page says the budget is 'up to $100 Million annually, collected through June 2026'.

Who: Owners of multifamily affordable housing properties. This is not a program for single-family homeowners.
Deadline: Funding was collected through June 2026. The program reports 175+ applications in 2026. Integrated storage incentives are paused (waitlist) in PG&E and SDG&E territories.
Checked: November 5, 2026

Utility incentives in California

Utility · rebateWaitlist

LADWP Self-Generation Incentive Program (Residential Solar and Storage Equity)

State SGIP RSSE incentives for income-qualified LADWP customers: $3.10/W solar plus $1.10/Wh storage (step 6). Waitlist.^[8]

The SGIP step tracker (https://www.selfgenca.com/home/program_metrics/) shows LADWP 'Residential Solar and Storage Equity - AB 209' at Step 6, Waitlist, as of 11/5/2026.

Who: Single-family households at or below 80% of Area Median Income, or qualifying deed-restricted low-income multifamily properties, in LADWP territory. The project must include both solar and storage, or add storage to existing solar.
Deadline: Ends when funds run out. LADWP says it cannot guarantee that waitlisted customers will receive an incentive.
Checked: November 5, 2026

Only for Los Angeles Department of Water and Power customers.

Utility · performance paymentAvailable

LADWP Solar Rooftops Program

LADWP installs and owns a 1-10 kW system on your roof and pays you $360-$900 per year for up to 20 years ($7,200-$18,000 total)^[9]

amount_usd is the maximum annual payment. cap_usd is the maximum 20-year total. The page is currently accepting applications (online, email or mail).

Who: Owner-occupied LADWP residential customers on rate schedules R1-A, R1-B, R1-D or R1-E whose roof passes LADWP inspection. LADWP keeps all the energy produced. The homeowner gets a fixed rooftop-lease payment, not bill savings.
Maximum: $18,000
Deadline: No end date stated. The program 'shall at all times be subject to change or termination without notice.'
Checked: November 5, 2026

Only for Los Angeles Department of Water and Power customers.

Utility · bill creditEnding soon

PG&E Solar Billing Plan Energy Export Bonus Credit (ACC Plus adder)

Extra credit per exported kWh, locked for 9 years from PTO. Value depends on the year the interconnection application was completed: 2026 = $0.0088/kWh (low-income $0.036). 2027 = $0.0044/kWh (low-income $0.018).^[10]

Tariff table 'Adopted Avoided Cost Calculator Plus Adder': Residential 2023 $0.02200, 2024 $0.01760, 2025 $0.01320, 2026 $0.00880, 2027 $0.00440. Residential Low Income: $0.09000, $0.07200, $0.05400, $0.03600, $0.01800. Non-Residential: Not Eligible. PG&E calls this the 'Energy Export Bonus Credit' in customer materials.

Who: New residential PG&E Solar Billing Plan customers. Not available to customers moving over from NEM/NEM2 at the end of their legacy period, buyers of homes with existing systems, non-residential customers, or customers required to add solar (e.g., by the building code).
Deadline: December 31, 2027
Checked: November 5, 2026

Only for Pacific Gas and Electric Company customers.

Utility · bill creditEnding soon

SCE Solar Billing Plan Energy Export Bonus Credit (ACC Plus adder)

Extra credit per exported kWh for residential customers who enroll before 2028. First-year enrollees got $0.04/kWh (low-income $0.09/kWh). Later vintages receive less.^[11]

sce.com could not be reached directly (DNS failure and bot block), so I used the archived copy of the canonical page https://www.sce.com/clean-energy-efficiency/solar-generating-your-own-power/billing-incentives/solar-billing-plan. I could not verify SCE's adder values for the 2026 and 2027 vintages from an SCE source. The CPUC NEM page confirms the adder applies to PG&E and SCE but not SDG&E.

Who: New residential SCE Solar Billing Plan customers. Low-income means CARE/FERA customers, owners of single-family homes in disadvantaged communities, and residents of Tribal communities.
Deadline: December 31, 2027
Checked: November 5, 2026

Only for Southern California Edison customers.

Utility · rebateAvailable

SMUD My Energy Optimizer Partner+ battery enrollment incentive

$300 per kWh of battery, up to $6,000 per household, for interconnection applications submitted on or after Sept. 23, 2026. Earlier projects got $500/kWh up to $10,000 if enrolled by Dec. 31, 2026. Tesla owners also receive quarterly payments.^[12]

Quarterly incentives are currently Tesla-only: 1 battery $110, 2 batteries $220, 3+ batteries $330. SMUD offers no solar rebates: 'SMUD does not offer rebates for solar installations but battery storage incentives are available.' (https://www.smud.org/Going-Green/Solar-for-Your-Home).

Who: SMUD residential customers with a qualifying battery who are on the Solar and Storage Rate. They must enroll within 90 days of permission to operate. MED Rate customers are not eligible.
Maximum: $6,000
Deadline: No end date stated. The higher $500/kWh tier requires an interconnection application by Sept. 22 and program enrollment by Dec. 31, 2026.
Checked: November 5, 2026

Only for Sacramento Municipal Utility District customers.

Local incentives in California

Local · rebateAvailable

San Diego Solar Equity Program (SDSEP)

Cash help toward rooftop solar for income-qualified homeowners in the City of San Diego. $10 million total over 10 years ($1 million per year).^[13]

SDG&E's Solar Billing Plan page (https://www.sdge.com/solar/solar-billing-plan) lists SDSEP as a current assistance program. I could not verify the per-household incentive amount or whether this year's funding remains.

Who: Income-qualifying single-family homeowners within the City of San Diego who are SDG&E customers. It is funded by SDG&E shareholders under the City-SDG&E franchise agreement.
Deadline: 10-year program funded at $1 million per year. Annual funds may run out.
Checked: November 5, 2026

Only for San Diego Gas & Electric customers.

How these incentives stack

Cash rebates are paid first and usually reduce the cost a tax credit is based on. State tax credits only help if you owe enough state income tax. Exemptions (sales and property tax) apply automatically or through a form, and they do not reduce what you owe the installer on paper, so check that a quote does not charge tax that the law exempts. The calculator applies the programs it can model and lets you switch utility rebates on or off.

California Solar Incentives, Rebates and Tax Breaks