California Solar Incentives in 2026: What's Still Available, Who Qualifies, and What Changed
- California Solar Incentives at a Glance (October 2026)
- Is There a California Solar Tax Credit in 2026?
- Solar Plus Storage for Self-Use and Backup: EcoFlow TITAN Plus as a Candidate to Verify
- SGIP Battery Rebates in 2026: What's Open, Waitlisted, or Closed
- Low-Income Solar Programs: DAC-SASH, SOMAH, and Bill Discounts for Renters
- Net billing in California: How solar exports are credited now
- Equipment Lists, Installers, and Permits: Requirements Before You Apply
- Conclusion
- FAQs
If you're planning to install solar in California, don't count on the 30% federal tax credit many older guides still mention. It no longer applies to home solar property placed in service after December 31, 2025. California still offers solar incentives, but most target specific groups. The state's solar property tax exclusion also has a deadline: January 1, 2027. This guide covers available programs, who runs them, and what to check before signing an installation contract. Funding and eligibility rules can change, so confirm the details with the program administrator before including an incentive in your budget.
California Solar Incentives at a Glance (October 2026)
California still supports solar and battery storage, but the options depend on your income, housing type, utility, and equipment. Several general-market storage rebates closed at the end of 2025. Here's where to start.
Incentive | Who runs it | What it offers | Who qualifies | Status |
Federal Residential Clean Energy Credit (Section 25D) | IRS | Was 30% of qualified costs, including batteries of at least 3 kWh | Homeowners | Ended: "not available for any property placed in service after December 31, 2025" (IRS) |
California state income tax credit for home solar | Franchise Tax Board | None current | N/A | FTB's 2025 Form 3540 instructions list solar credits only as carryovers from credits whose "repeal dates have passed" |
Active solar energy system new construction exclusion (Revenue and Taxation Code §73) | County assessors, guided by the Board of Equalization | Qualifying solar isn't counted as new construction for property tax reassessment | Systems completed before January 1, 2027 | Becomes inoperative January 1, 2027 (SB 710, Chapter 328, Statutes of 2025). The continued exclusion for previously qualifying systems, including the effect of a change in ownership, requires confirmation against the final enacted text. |
Self-Generation Incentive Program (SGIP) | CPUC; administered by PG&E, SCE, SoCalGas, Center for Sustainable Energy (SDG&E area), and LADWP | Battery (and, for the equity budget, solar) incentives | Mainly low-income households in 2026 (Residential Solar and Storage Equity budget) | Ratepayer budgets closed to new submissions December 31, 2025; equity budget open or waitlisted by territory (H2 #4) |
DAC-SASH | CPUC; GRID Alternatives administers | "$3/watt incentives to install an onsite solar system" | Income-qualified single-family homeowners in disadvantaged communities in PG&E, SCE, or SDG&E territory | Budget of $10 million per year, 2019 to 2030 |
SOMAH | CPUC; program administrators | Solar incentives for multifamily affordable housing, with bill credits for residents | Deed-restricted affordable properties with at least five rental units | Runs through 2032 under SB 355; storage paused in PG&E and SDG&E areas in 2026 |
Net Billing Tariff | CPUC (PG&E, SCE, SDG&E customers) | Bill credits for exported solar at export values that are "usually lower than the retail rate" | New solar customers since April 15, 2023 | In effect (H2 #6) |
SMUD Solar and Storage Rate and My Energy Optimizer Partner+ | Sacramento Municipal Utility District (SMUD) | Export rate increased to 9.6¢/kWh on June 1, 2026. One-time battery incentive: $300/kWh, up to $6,000, after a 20% reserve capacity deduction. | Eligible SMUD customers with qualifying batteries. Fully SMUD-funded projects, MED rates, and separately rented units are ineligible. | New tier applies to interconnection applications submitted on or after September 23, 2026. Enroll within 90 days of PTO. Earlier applications may qualify for the old tier if enrolled by December 31, 2026, subject to the 90-day rule. Confirm eligibility with SMUD. |
This table is a starting point, not an eligibility decision. Check current funding, application steps, and equipment rules before relying on an incentive. If you use a municipal utility, check its solar policies, as the rules for PG&E, SCE, and SDG&E may not apply. Electricity costs also affect the value of solar, so compare local utility rates and export credits when estimating your potential savings.
Is There a California Solar Tax Credit in 2026?
For home solar systems installed in 2026, the federal residential clean energy credit is no longer available. California also has no current state income tax credit for new installations. However, qualifying systems completed before January 1, 2027, may still qualify for the state's property tax exclusion.
The federal Residential Clean Energy Credit
The IRS Residential Clean Energy Credit states that the federal credit does not apply to property placed in service after December 31, 2025. For qualifying systems placed in service from 2022 through 2025, the credit was generally 30% of eligible costs. If your system was placed in service in 2025, you may claim the credit on your 2025 tax return using Form 5695, subject to IRS requirements. For state-level filing instructions in California, refer to the FTB Form 3540 Instructions, and review property tax exclusions via the Board of Equalization Active Solar Energy System Program.
California's state income tax rules
California does not currently offer a personal state income tax credit for new home solar installations. Older state credits listed in Franchise Tax Board materials are carryovers from programs whose repeal dates have passed. Don't include a state income tax credit in your 2026 solar budget. Other incentives may be available to eligible households, but they are separate programs.
The property tax exclusion ends with 2026 completions
California's Section 73 property tax exclusion covers qualifying solar systems completed before January 1, 2027. The exclusion ends on that date under Senate Bill 710. Ask your installer and county assessor if your system qualifies. Check the deadline and required records. Keep your installation and tax documents, and consult a tax professional if needed. Without the federal tax credit for new 2026 installations, savings depend more on your electricity rates and how much solar power you use or export. EcoFlow TITAN Plus may help you use stored solar power in the evening and provide backup. Ask your installer to confirm compatibility and compare the total installed cost before deciding.
Solar Plus Storage for Self-Use and Backup: EcoFlow TITAN Plus as a Candidate to Verify
A home battery can help you use more of your own solar electricity after sunset and keep selected circuits running during an outage. Whether it qualifies for an incentive is a separate question. Don't assume that a program covering solar panels also covers a battery, or that a particular battery qualifies just because it is available for sale.
What to confirm before counting on an incentive
Before choosing equipment, check these details with the program administrator and your installer:
Program eligibility: Confirm that the specific battery, configuration, and applicant meet the program's rules. EcoFlow TITAN Plus is not confirmed as eligible for SGIP, SMUD, or another California incentive.
Solar versus storage: A solar incentive may cover only the equipment named in its rules. Battery storage can have separate requirements.
System compatibility: Ask your installer to confirm that your solar array is compatible with the battery's solar input and intended no-export operation.
Installation requirements: A qualified electrician must handle the required Smart Home Panel 10 and circuit work. Local permits and utility requirements also apply.
California's Net Billing Tariff usually pays less for exported solar than the retail electricity rate. A battery can help you save by storing solar power for later use. The California Public Utilities Commission notes this potential benefit. With a compatible battery in no-export mode, your home can use stored solar power instead of sending it to the grid. You won't earn export credits for that energy. The value comes from using your own power and having backup during outages.
Where EcoFlow TITAN Plus fits
EcoFlow TITAN Plus may suit California homes with compatible solar that want to use more stored energy in the evening and back up selected circuits. It does not earn export credits or guarantee eligibility for SGIP, SMUD, or other incentives. Confirm equipment compatibility with your installer and incentive eligibility with the program administrator.
Estimated usable energy: The 5,000 Wh base capacity provides approximately 4,250 Wh per full cycle, assuming 85% efficiency after conversion and storage losses. This is a planning estimate, not a savings claim. Request an installed quote and compare it with your electricity rate. Wildfire season can bring planned power shutoffs across California. Learn how to prepare for California's Public Safety Power Shutoffs and decide how much backup power your home needs. SGIP is California's main battery rebate program. Funding is limited, and much of the available support goes to eligible low-income households.
SGIP Battery Rebates in 2026: What's Open, Waitlisted, or Closed
California's Self-Generation Incentive Program (SGIP) supports home batteries and other energy resources. Many older articles still mention residential rebates that closed on December 31, 2025. In 2026, the main open residential option focuses on eligible low-income households. Funding can change, so check the current program status before applying.
Budget | Rate (current step) | Status |
Small Residential Storage | $0.15/Wh (Step 7) | Closed in all four IOU-area administrators |
Equity Resiliency | $1.00/Wh (Step 5) | Closed in all four IOU-area administrators |
Residential Solar and Storage Equity, ratepayer-funded | $1.10/Wh storage (Step 6) | Closed |
Residential Solar and Storage Equity, AB 209 | $1.10/Wh storage; $3.10/W solar (Step 6) | Waitlist (CSE, SoCalGas, LADWP; SCE and PG&E non-POU); open for the SCE and PG&E POU allocations |
The California Public Utilities Commission approved $280 million for the Residential Solar and Storage Equity (RSSE) budget. Reservations opened on June 2, 2025, for eligible low-income customers. Check the SelfGenCA program tracker for current funding before buying a system. Single-family projects also have a 30 kWh incentive cap under storage rules introduced in February 2025. SGIP recommends using an installer from its Approved SGIP Developer List. The installer can explain the application process and technical requirements. Not every battery qualifies. The program administrator must confirm that your equipment and installation meet the rules, including EcoFlow TITAN Plus. For more details, review the RSSE equity budget information. Check current funding before relying on an advertised incentive or waitlist position.
Low-Income Solar Programs: DAC-SASH, SOMAH, and Bill Discounts for Renters
California offers programs to help households afford rooftop solar. The best option depends on your housing situation. You may own a single-family home, live in affordable housing, or rent in an eligible community.
DAC-SASH for qualifying homeowners
The DAC-SASH program helps eligible low-income homeowners install solar in disadvantaged communities. Applicants generally must qualify for CARE or FERA. Those in eligible San Joaquin Valley pilot communities may also qualify. The home must be served by a participating utility. The program offers $3 per watt in incentives. GRID Alternatives manages the program statewide. Check the eligibility criteria before applying.
SOMAH for affordable multifamily properties
The SOMAH program supports solar installations at qualifying affordable multifamily properties. Per SOMAH Program Handbook §2.2.1, eligible properties must have at least 5 units, separate metering compliant with VNEM, and be located in PG&E, SCE, SDG&E, Pacific Power, or Liberty territories with at least 10 years remaining on deed-restricted affordability. Under the income path, at least 66% of residents must earn 80% or less of the area median income (AMI). SB 355 targets 300 MW of solar capacity by December 31, 2032. Storage incentive pauses (PG&E on May 22, 2026; SDG&E on July 15, 2026) mean new requests may be waitlisted.
DAC-GT and CSGT for eligible renters
Renters without a suitable rooftop may still qualify for solar bill discounts. Two options are DAC-GT and CSGT. Both offer eligible households in disadvantaged communities a 20% discount on electricity bills. They offer an alternative to installing rooftop panels. Community solar for renters and apartments offers another way to benefit from shared solar projects. These projects can help lower electricity bills. Each program has its own rules. Your household income, utility provider, and enrollment status determine whether you qualify. Check the program administrator's criteria to identify available options.
Net billing in California: How solar exports are credited now
New solar customers of PG&E, SCE, and SDG&E generally fall under the Net Billing Tariff if they applied for interconnection on or after April 15, 2023. This tariff is also called NEM 3.0. Instead of earning retail-rate credits, customers receive credits based on the value of electricity they send to the grid. As a result, using more solar power at home becomes more important. Customers must also use specific time-of-use (TOU) rates: E-ELEC for PG&E, TOU-D-PRIME for SCE, and EV-TOU-5 for SDG&E. The original customer is guaranteed the tariff for nine years, while export values are periodically updated. Municipal utilities such as LADWP and SMUD follow their own rules. For a clearer picture of how these credits appear on your bill, see EcoFlow's guide to understanding PG&E solar billing. Next, check the equipment and installation requirements for your incentive.
Equipment Lists, Installers, and Permits: Requirements Before You Apply
Even if you appear to qualify for an incentive, your equipment and installation must meet the program's requirements. Check these rules before choosing a system, not after you've signed a contract or paid a deposit.
Verify equipment and installer requirements
Before choosing a solar or battery system, check the equipment, installer, and permitting rules that apply to your project. These requirements can affect both incentive eligibility and utility approval.
Check equipment listings. The California Energy Commission maintains lists of solar modules, inverters, meters, batteries, and energy storage systems. It updates these lists three times a month. Utilities and local governments may use them for interconnection and permitting. Ask your installer to verify every relevant component.
Use an approved program installer when required. SGIP recommends an installer from its Approved SGIP Developer List. DAC-SASH is administered by GRID Alternatives.
Confirm permits and electrical work. A licensed electrician should handle the required panel, battery, and circuit work. Local permits and utility interconnection steps may also apply.
Ask about the property tax exclusion. Contact your county assessor about the records needed to document eligibility under Section 73 before January 1, 2027. Don't assume a battery is automatically excluded.
Keep project records. Save invoices, permits, sign-off documents, and permission-to-operate dates. Different rules can depend on completion or interconnection dates.
The California Energy Commission says it may not verify all manufacturer-submitted equipment information. Ask your installer to check the current equipment list and any extra requirements from your utility or local permitting office. Don't assume a product is approved simply because a manufacturer says it meets a standard. Upfront cost is another part of the decision. Before comparing quotes, check rooftop solar installation costs in your area. Make sure each quote covers similar equipment, labor, permits, and electrical work.
Conclusion
California solar incentives in 2026 are more limited than many older guides suggest. The federal residential clean energy credit ended for systems placed in service after December 31, 2025. California also has no current state income tax credit for new home solar. Qualifying systems may still receive California's property tax exclusion. They must be completed before January 1, 2027. Programs such as SGIP, DAC-SASH, and SOMAH support eligible households and properties. Before signing a contract, check current funding, utility rules, equipment requirements, and deadlines. If you're considering EcoFlow TITAN Plus, ask your installer to check compatibility. Confirm incentive eligibility with the program administrator.
FAQs
Is there a California solar tax credit in 2026?
No. The federal 30% residential clean energy credit ended for systems placed in service after December 31, 2025. California also has no current state income tax credit for home solar.
What solar rebates does California offer in 2026?
Potential options include SGIP rebates for eligible low-income households. DAC-SASH also supports qualifying homeowners in disadvantaged communities. SOMAH supports eligible affordable multifamily properties. Municipal utilities such as SMUD may also offer their own programs. Availability depends on current funding and program rules.
Do solar panels raise property taxes in California?
A qualifying solar system may qualify for California's Section 73 property tax exclusion. It must be completed before January 1, 2027. Systems installed after the exclusion becomes inoperative may be assessed as new construction. Confirm your project's status with your county assessor.
Does California still have net metering?
New PG&E, SCE, and SDG&E solar customers who applied for interconnection on or after April 15, 2023, generally fall under the Net Billing Tariff. Exported electricity is usually credited below the retail rate. Municipal utilities have their own rules.
Does a home battery qualify for SGIP?
The program administrator must verify that the applicant qualifies. The battery and installation must also meet the program's requirements. In 2026, open residential SGIP funding primarily serves eligible low-income customers. Don't assume EcoFlow TITAN Plus qualifies without confirmation.
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