Solar & Net Metering Policy
Net metering is available in California, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Net Billing Tariff (NEM 3.0) is in effect, significantly reducing export compensation compared to retail rates. California does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Additional savings are available through a property tax exemption on the added home value.
Net Metering Notes
Net Billing Tariff (NEM 3.0) is in effect, significantly reducing export compensation compared to retail rates.
Utility Rebate Details
Self-Generation Incentive Program (SGIP) available for battery storage.
Does California have net metering?
Yes. California has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Net Billing Tariff (NEM 3.0) is in effect, significantly reducing export compensation compared to retail rates.
What solar tax credits are available in California?
California does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in California?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in California for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in California?
Yes. California offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in California?
California does not currently offer a sales tax exemption for solar equipment. Sales tax applies to the purchase of solar panels and installation materials at the standard state rate.
Does California have an SREC market?
California does not currently have an active SREC market. Solar owners in California cannot generate additional income through SREC sales at this time.
Are there utility rebates for solar in California?
Yes. Utility rebates are available in California. Self-Generation Incentive Program (SGIP) available for battery storage.
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Official Source
California Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.