California and the federal government offer homeowners incentives to adopt residential solar panels and/or home solar batteries. California is the #1 state in the US for solar and offers some of the best solar incentives. As a local San Francisco Bay Area company, we understand our state’s solar incentive programs and are ready to help guide you.

Federal Solar Incentives

The Solar Investment Tax Credit (ITC)

Installing a solar energy system on your property not only helps the environment but can also provide significant financial benefits through the Federal Investment Tax Credit (ITC). This incentive allows you to deduct 30% of the cost of your solar installation from your federal income taxes. Thanks to the Inflation Reduction Act of 2022, the 30% tax credit has been extended for systems installed between 2022 and 2032.

Importantly, starting in 2023, this credit also applies to standalone battery storage systems, even if they are not paired with solar panels. By leveraging the ITC, you can substantially reduce the upfront costs of your solar or battery storage project, accelerating your return on investment.

This tax credit is available for both residential and commercial installations, making it an excellent opportunity for homeowners and businesses alike to transition to clean energy. To maximize your savings and ensure eligibility, we recommend consulting with a tax professional or your solar consultant.

California Solar Incentives

Solar Energy System Property Tax Exclusion

In California, the Solar Energy System Property Tax Exclusion allows property owners to install solar energy systems without increasing their property taxes due to the added value of the system. This incentive means that when you add a qualifying solar energy system to your residential or commercial property, the added value from this installation is excluded from your property's assessed value for taxation purposes. The exclusion covers systems that generate electricity (like photovoltaic panels), heat water, or provide space heating and cooling.
Currently, this valuable tax exclusion is set to expire on January 1, 2027, unless extended by new legislation. To take full advantage of this incentive, it's advisable to install your solar energy system before this date. The exclusion remains in effect as long as the solar system is operational and continues until there is a change in property ownership.
By leveraging the Solar Energy System Property Tax Exclusion, you can significantly reduce the overall cost of going solar. Not only does this help you save on energy bills, but it also contributes to a more sustainable future without the concern of increased property taxes. For more information or to confirm eligibility, please contact your local County Assessor's Office or consult with a tax professional.

Self-Generation Incentive Program (SGIP)

SGIP offers financial incentives to homeowners who install new clean energy technologies that meet some or all of their family’s electricity needs such as a home solar battery. Customers of the following utilities are eligible: PG&E, SCE, SoCalGas, and SDG&E. The SGIP program was created to help reduce greenhouse gas emissions and create a more reliable electric grid in California.

SGIP rebates for homeowners are dispersed in a strict step system that requires early application and a comprehensive monitoring program.

Solar Storage Credit offered by MCE (Marin Clean Energy)

Homeowners with solar installations are eligible for programs like the Solar Storage Credit offered by MCE (Marin Clean Energy) present an excellent opportunity to further incentivize sustainable practices. By automating battery discharge from 4-9 p.m. and maintaining a reasonable battery reserve, participants can earn up to $20 per month in bill credits! This savings demonstrates MCE's commitment to rewarding renewable energy adopters.

Rural Energy for America Program (REAP)

Farmers and rural businesses can take advantage of the USDA’s Rural Energy for America Program (REAP) grants and loans for energy efficiency improvements. By combining federal tax credits and depreciation with REAP grants, recipients can slash initial costs significantly, making renewable energy solutions more accessible in rural areas.

Direct Pay

Non-profit organizations, including churches and mosques, can benefit from renewable energy incentives through the Direct Pay provision. This initiative allows tax-exempt entities to receive the 30% federal tax credit as a direct payment, empowering them to invest in sustainable infrastructure without financial constraints.

Get A Solar Quote

Do You Qualify for Federal and California Solar Panel Incentives?

Do you have questions about solar panel incentives in California? Call Sun Light & Power for answers today. We’re here to help make your solar journey as smooth as possible.

Sun Light & Power is a 100% employee-owned Benefit Corp, committed to being a force for good in our community. Our goal is to help California homeowners achieve their dream of going solar and ensure they have an exceptional customer experience.

Save on your solar panel installation with solar rebates and incentives. Call Sun Light & Power at 510.845.2997 or contact us online to get started.

As a GoGreen Financing contractor, Sun Light & Power can offer financing for bundled solar PV + battery storage, EV chargers, and battery storage for pre-existing solar! Financing can include panel upgrades, roof repair, battery enclosure mitigation, permit costs and other necessary work. For solar + storage projects, there is a new lending cap of $75,000 and terms to 20 years.

Interested in GoGreen Business or Multifamily? Learn more about the other program's eligibility and guidelines here.

* Only available for customers who receive electricity from PG&E, SCE or SDG&E.

What is GoGreen Financing?

GoGreen Financing is part of the California Hub for Energy Efficiency Financing (CHEEF), a state-administered program working towards a cleaner and more energy-efficient California. Funds from investor-owned utility ratepayers power the program, and GoGreen partners with finance providers and local contractors to make it happen.

CHEEF is administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), which is housed in the California State Treasurer’s Office. Learn more on the CAEATFA website. The CHEEF and a series of energy efficiency financing pilot programs were authorized by the California Public Utilities Commission (CPUC) and developed in collaboration with the investor-owned utilities:

☀️ Pacific Gas and Electric Company (PG&E®)	☀️ Southern California Edison (SCE®)
☀️ Southern California Gas Company (SoCalGas®)	☀️ San Diego Gas & Electric Company (SDG&E®)

GoGreen Home

GoGreen Home Energy Financing is designed to help California homeowners and renters find attractive financing for their energy efficiency projects.

No home equity needed
Competitive rates
No closing costs or fees
No money down
Can be used to fund other non energy improvements, such as landscaping or home renovations and repairs
Available to borrowers with a wide range of credit scores and incomes
Broad list of energy efficiency projects available

GoGreen's Program Goals

The State of California has ambitious goals to reduce greenhouse gas emissions and address climate change. An important part of achieving these goals and improving air quality is reducing energy use in existing buildings. Billions of dollars are needed for the upgrades, and there is simply not enough government or utility company funding to pay for these investments. The energy efficiency financing programs seek to:

bring about broader and deeper energy savings than can be realized through traditional utility rebate and incentive programs
make more private capital available for energy upgrades, so customers have access to financing to make their homes and businesses more comfortable and efficient
help traditionally underserved customers access attractive financing

Benefits of GoGreen Financing

☀️ Customers can enjoy affordable financing rates and terms.	☀️ Contractors and energy service companies (ESCOs) can access broader energy efficiency projects.
☀️ Finance companies attract new members and customers.	☀️ The State of California reaches its energy savings goals.

Program features

The programs offer finance companies a credit enhancement in the form of a loss reserve. The loss reserve helps mitigate the risk for finance companies because they can access these funds in the case of a default. This allows the finance companies to offer more attractive terms – like lower rates, larger amounts to borrow, or longer time periods for repayment – than they otherwise could. The credit enhancement also allows finance companies to approve financing for a wider base of borrowers than they otherwise could, like homeowners with lower credit scores or small businesses with only a few years of operating history. Additionally, the small business program offers an on-bill repayment option. This allows customers to make, and finance companies to receive, convenient payments for financing charges through the bills of all four investor-owned utilities using the CHEEF infrastructure.

Learn more about program eligibility and guidelines on the GoGreen Financing website at the following links:

☀️ GoGreen Home

☀️ GoGreen Business

☀️ GoGreen Multifamily

Why Go Solar?

When it comes to combining solar energy with your business operation, think of solar as an investment that actually provides a return. A custom designed solar PV system or solar thermal hot water heating system will reduce your operating expenses, protect you from volatile utility costs, show your commitment to the environment and the green business movement, and can even increase the reliability of your electrical system.