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California continues to lead the country in solar energy adoption. With the ever-rising cost of electricity in the Golden State, Californians are wondering if there are ways to invest for less. Fortunately, there are plenty of old and new incentives to encourage residents to invest in clean, renewable energy to reduce their reliance on the electrical grid and save money on rising electrical bills. Understanding the available tax credits, rebates, and programs can help homeowners make informed decisions to reduce their electricity bills and contribute to a sustainable future. Let’s dive in and start saving money.
California Solar Incentives and Rebates
Here’s a summary of California’s rebates and incentives to help you control your rising electrical bills.
| Incentive | Average Savings | Eligibility | Description |
| Federal solar tax credit | $5,400 | All tax-paying U.S. citizens | A federal tax credit equal to 30% of installation costs |
| Property tax exclusion | Less than $50 annually | All homeowners with photovoltaic panels | The value added by a new photovoltaic installation is excluded from property tax reassessment |
| Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) | All or nearly all costs are covered | Residential customers of PG&E, SCE, or SDG&E who live in the top 25% of most disadvantaged communities | Helps low-income homeowners in specific disadvantaged communities get solar panels installed for low/no cost through GRID Alternatives Energy for All Program |
| Self-Generation Incentive Program (SGIP) | $2,025 | PG&E, SCE, SDG&E, SoCalGas, and certain people in high fire threat districts, Indian Country, or low-income housing | Incentives for installing battery storage of between $150 and $1,000 per kWh, based on qualifying factors |
| Demand Side Grid Support (DSGS) Program | $350 per year | Tesla Powerwall owners | Customers who allow their batteries to be remotely controlled at certain times of the year can earn payments |
Federal Solar Tax Credit
The Inflation Reduction Act 2022 extends the federal solar tax credit until 2032. This program gives you 30% of the total cost of your solar installation, also called photovoltaics, back to you as federal tax credits. For example, if your system costs $18,000, you will earn $5,400 in federal tax credits. If you owe less than that in taxes, it will be carried over to the following year. The rates will decrease to 26% in 2033, 22% in 2034, and end in 2035.
Property Tax Exclusion for Solar Energy
The California Active Solar Energy System Exclusion prevents a re-assessment of a property with a newly installed photovoltaic system. Even though your home’s value will increase by around 6.8%, you will not be assessed the 0.75% California state property tax on that increase. Note that this isn’t an exemption since it only temporarily excludes the reassessment. It also only applies to the home’s original owner; the property is reassessed if they sell.
California DAC-SASH Program
The DAC-SASH program is a fantastic incentive available to low-income people who own and live in certain disadvantaged communities served by the state’s largest electric utility companies: PG&E, SCE, and SDG&E. The nonprofit GRID Alternatives program administers the program, which provides workforce development, policy advocacy, and photovoltaic job skills training to perform installations. You can even combine this with other local incentives to mostly or even fully cover the installation cost, potentially allowing you to end up with free solar panels.
California Self-Generation Incentive Program (SGIP)
The SGIP allows utility customers of San Diego Gas & Electric, SoCalGas, Southern California Edison, and Pacific Gas & Electric to receive rebates for installing photovoltaic batteries. The California Public Utilities Commission will provide a $150 rebate for each kWh of photovoltaic storage or up to $1000 per kWh for those in certain areas who meet income requirements, significantly cutting the installation cost.
You can use these rebates to purchase one of the EcoFlow Solar Generators to lower your electricity bills. Then, you can calculate solar ROI to determine when you’ll pay off your system and get free energy for years to come.
California Net Metering Incentives
Net metering has become complicated in California since the Net Energy Metering (NEM) 2.0 ended in 2023. The state’s major utilities, Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E), are now offering Net Billing, or NEM 3.0, which has reduced the payments to about ¼ of the retail rate, with different rates depending on the hour of the day, the day of the week, and the month of the year.
The complexity makes it challenging to calculate your savings, but you’ll still earn money from the excess energy you export to the grid. You’ll benefit from having the cheapest energy option while reducing your reliance on the grid.
The EcoFlow DELTA Pro 3 Solar Generator (PV400W) offers 4000W output and a 400W photovoltaic panel. However, it has two photovoltaic inputs, so you can add multiple solar panels to achieve up to 2600W of photovoltaic input. Any excess you produce, you can sell back to the grid. Moreover, the batteries are expandable up to 48kW, which is large enough for a whole-home generator solution.
Local Solar Tax Credits and Incentives
Many cities, towns, and municipalities also incentivize residents to invest in photovoltaics.
Alameda Municipal Power Income-Qualified Rebate
Alameda Municipal Power’s residential customers can get $500 back for any qualifying installation if their income is less than $106,000 and their home was built before 2020.
CleanPowerSF Solar Inverter Replacement Program
The San Francisco Public Utilities Commission and CleanPowerSF help customers replace old, damaged photovoltaic inverters. To be eligible, you must be an existing GoSolarSF customer with a 10-year or older installation no longer covered by warranty. If eligible, you could qualify for up to $3,000 to cover the replacement cost.
Lancaster Energy Power Choice
Residential customers of Lancaster Energy can get free Tesla installations through the Power Choice program. Tesla will install rooftop panels and a battery for no money, and customers will pay for energy usage and storage through their electric bill. However, you won’t own the system, are ineligible for tax credits and rebates, and can only get out of it if you buy out their equipment.
Los Angeles Department of Water and Power Solar Rooftops Program
LADWP will install and maintain photovoltaic panels on a homeowner’s property at no cost, paying the homeowner $240 to $600 yearly for 20 years. However, your electricity bill will be unaffected, and you will be ineligible for tax credits and rebates.
Sacramento Municipal Utility District Battery Storage Incentive
SMUD has ended its photovoltaic panel rebate but is now offering $5,000 in incentives per battery, up to a maximum of $10,000 for those who install two or more. Incentives vary depending on which pricing plan you opt for and how much control over your battery you give to SMUD.
San Diego Green Building Incentive Program
The city of San Diego is waiving building permit fees and plan check fees through their Green Building Incentive Program for those installing residential photovoltaics.
Silicon Valley Power Low Income Solar Grant Program
Silicon Valley Power provides grants to residential customers enrolled in its Financial Rate Assistance Program. Eligible customers who own photovoltaics can get $3.50 per watt for systems up to 3 kW that produce at least 3,800 kWh annually.
SoCalGas Solar Thermal Water Heating System Rebate
SoCalGas customers can get $2,500 to $4,500 back on qualifying photovoltaic water heaters with a Solar Uniform Energy Factor of 1.8 or higher. You must also install a new Energy Star-certified water heater.
Solar Battery and Storage Incentives in California
SGIP Equity Resiliency and Storage Rebates
The SGIP rebate offers $150 per kWh of energy storage for customers of the three main utility companies when installing residential photovoltaic batteries.
Additional incentives are available to qualifying individuals under the Equity requirement for low-income in disadvantaged communities and under Equity Resiliency for low-income households in high-risk fire areas.
The EcoFlow DELTA Series Generators come in a wide range of battery capacities to suit your needs, from those that can supplement your grid energy to systems with expandable batteries to go off-grid altogether.
Demand Side Grid Support (DSGS) Program
The DSGS program compensates homeowners up to $350 annually who use PG&E, SCE, or SDG&E with Tesla Powerwall batteries for allowing their batteries to be partially discharged to supply the grid during peak electricity demand. However, owners must allow Tesla to control their batteries remotely.
PACE Financing for Solar Panels
Property Assessed Clean Energy or PACE is an option for financing photovoltaic installations tied to their property rather than the homeowners. Residents repay the loans through increased property tax payments over 10 to 30-year terms. No down payment is required, but it does place a lien on your home until the loan is paid off, which could present problems for those who plan to sell. However, if you don’t intend to sell, it can be a good option for those who can’t pay for their system upfront.
You can use the PACE program to purchase and install the EcoFlow DELTA 3 Plus, which has an 1800W output. You recharge it with the super-efficient EcoFlow Rigid Solar Panels.
Are Solar Incentives in California Ending?
While some programs have ended, and the SGIP is scheduled to end after 2025, new incentives have also opened up, especially for battery storage. In addition to state incentives, many local incentives are available, making it a great time to invest.
Frequently Asked Questions
Through the DAC-SASH program, low-income individuals in certain disadvantaged communities could get free photovoltaic installations. Other programs will install photovoltaic panels on your home for free, but you don’t own them, are ineligible for tax credits and rebates, and your electrical bills don’t change.
Numerous rebates exist in California, including the DAC-SASH program, SGIP, Alameda Municipal Power rebate, CleanPowerSF Solar Inverter Replacement Program, and other rebates for batteries and thermal water heating.
California does not have a solar tax credit for 2024. However, all US citizens are eligible for the federal tax credit, which gives you 30% of your installation cost as a credit against your federal taxes.
Final Thoughts
Investing in solar energy in California remains a financially and environmentally sound decision. By leveraging federal tax credits, state property tax exclusions, local incentives, and rebates, homeowners can significantly offset installation costs and enjoy long-term savings. Staying informed about current programs ensures you maximize these benefits and contribute to a greener future. Ready to start saving money? Investing in EcoFlow Solar Generators will provide eligibility for incentives while saving you money for decades by reducing your reliance on increasingly more expensive grid power.