California Solar Incentives in 2026 (After the 30% Tax Credit Expired)

The 30% federal tax credit for buyers is gone

The One Big Beautiful Bill terminated the federal Residential Clean Energy Credit (IRC §25D) for systems placed in service after December 31, 2025. If you buy a system with cash or a loan in 2026, there is no longer a 30% federal tax credit. Any company still advertising one to homeowners is out of date — and that should make you question what else they're not keeping current.

Where the 30% value went: $0-down lease and PPA

The credit didn't fully disappear — it migrated. On third-party-owned systems (leases, PPAs, and prepaid plans), the financing company owns the system and claims the commercial §48E credit, then passes the value to you as a lower payment. That federal benefit is available through roughly 2027. It is a price benefit baked into your financing — not a tax credit you file for. Our no-credit-check prepaid solar plan is built on exactly this mechanism, and our financing page compares it against a loan and cash side by side.

Is there a California solar tax credit in 2026?

No — and this is one of the most-searched misconceptions. California has never offered a state solar income-tax credit, in 2026 or before. The state's incentives take other forms: the permanent property-tax exclusion described below, NEM 3.0 net-billing rules that reward battery pairing, and certain utility or local programs. If a company implies a 'California solar tax credit' will offset your purchase, ask them to show it to you in writing — they can't.

Can I still get the solar tax credit in California?

Only indirectly. If you buy a system with cash or a loan, no — the federal residential credit (§25D) expired December 31, 2025, and there is no state credit to replace it. But if you go solar on a lease, PPA, or prepaid plan, the financing company claims the commercial §48E credit and passes roughly 30% of federal value through as a lower price, through about 2027. You file nothing and need no tax liability — the benefit arrives as a better price, not a refund. For the mechanics, see our guide comparing a solar PPA vs prepaid vs cash in California.

California's property-tax exclusion (lock it in before 2027)

California excludes the added home value from solar from your property taxes — and SB 710 made that exclusion permanent for systems that qualify before January 1, 2027. In plain terms: add solar without raising your property tax bill, locked in until you sell. This is a real, time-sensitive reason to act in 2026.

The real 2026 math: NEM 3.0 + a battery

Under NEM 3.0, utilities pay far less for exported solar than they charge you in the evening. So the savings now come from storing your own daytime solar in a battery and using it during the expensive 4–9 PM peak. That's why a battery is now standard, and why a correctly sized solar-plus-battery system typically pays back in about 7–9 years.

A note on SGIP: California's general battery rebate budgets closed at the end of 2025. Only a limited income-qualified pathway remains, so don't count on a broad SGIP rebate in 2026.