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California Solar Incentives & Tax Credits (2025)

Comprehensive guide to federal tax credits, state rebates, net metering policies, and utility programmes available to California solar customers. Maximize your savings with the latest incentive information.

Available Incentives

💰 Available Incentives

🇺🇸

Federal Investment Tax Credit (ITC)

Federal

Available for all residential solar installations through 2032. Reduces system costs by nearly one-third.

30% of system cost
🏛️

California Property Tax Exemption

State

Solar installations don't increase property tax assessments, saving thousands over time.

100% exemption
🔋

SGIP Battery Storage Rebates

State

Self-Generation Incentive Program provides substantial rebates for battery storage systems.

Up to $1,000/kWh
💳

Sales Tax Exemption

State

No sales tax on solar equipment purchases, varying by local tax rates.

7.5-10% savings

Important: Incentives are subject to change. Always verify current rates and availability with your installer and local authorities.

Federal Solar Tax Credit (ITC)

Current Rate

30%

Of total system cost including installation

Timeline

  • • 2022-2032: 30% credit
  • • 2033: 26% credit
  • • 2034: 22% credit
  • • 2035+: No federal credit

California State Incentives

Net Metering Policy

Credit Rate

Retail rate compensation for excess energy sent to the grid

System Size Limit

Up to 100% of annual energy usage in most utilities

State Rebate Programmes

Residential Solar Rebate

Additional rebates available through state energy office and utility partners

Property Tax Exemption

Solar installations may be exempt from property tax increases

Utility Programmes

Time-of-Use Rates

Many utilities offer time-of-use pricing that can increase solar savings by paying more for energy produced during peak hours.

Peak hours:4-9 PM
Off-peak hours:9 PM - 4 PM

Interconnection

Streamlined interconnection processes help reduce installation time and costs for residential solar systems.

Timeline:2-6 weeks
Application fee:$0-$500

Calculate Your Incentives

Get personalized incentive calculations and current programme availability from qualified installers in California.

Important Deadlines

Act Soon to Secure Incentives

  • • Federal tax credit remains at 30% through 2032
  • • State rebate programmes may have funding limits
  • • Utility incentives can change with little notice
  • • Net metering policies may be updated annually

Incentives FAQ

What solar incentives are available in California?
California residents can access the 30% federal tax credit, plus state-specific rebates, net metering programmes, and utility incentives. Some areas also offer property tax exemptions and accelerated depreciation.
California's net metering policy allows you to sell excess solar energy back to the grid. You receive credits on your electricity bill that can offset future energy usage.
The federal tax credit has no income limits. Some California state programmes may have income requirements or provide additional benefits for low-to-moderate income households.
Yes, you can typically combine federal tax credits with state rebates and utility programmes. This can significantly reduce your total solar system cost.
Federal tax credits can be carried forward, but many state and utility incentives have deadlines or funding limits. It's best to act quickly to secure available incentives.

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