California is known for its sunny weather and its commitment to renewable energy, but it also offers a wealth of financial incentives that make going solar more affordable than ever before. Whether you’re looking to reduce your monthly energy bills, improve your home’s value, or take advantage of environmental benefits, these federal, state, and local programs are designed to help you save. And the best part? We’re here to help you navigate them all!
Federal Solar Incentives
The federal government offers one of the most significant financial incentives for homeowners making the switch to solar:
The Federal Solar Tax Credit (ITC)
The Federal Solar Tax Credit (Investment Tax Credit, or ITC) allows homeowners to deduct 30% of their solar system installation costs from their federal taxes. This applies to both solar panels and battery storage systems (such as solar batteries).
For example, if your solar system costs $20,000, you could receive a $6,000 tax credit, which significantly reduces your out-of-pocket expense.
This credit is available for homeowners who install solar systems and is valid for systems installed before the end of 2025.
State-Level Solar Incentives in California
California offers a variety of state incentives to help homeowners reduce the upfront cost of solar panel installation. These programs are aimed at making solar energy more accessible to a wider range of homeowners, particularly seniors and low-income families.
California Solar Initiative (CSI)
The California Solar Initiative (CSI) offers rebates for residential solar system installations, which are designed to reduce installation costs. Though funding for CSI has been reduced over time, it’s still a valuable resource for homeowners who qualify.
Self-Generation Incentive Program (SGIP)
For homeowners who install solar batteries alongside their solar panels, the Self-Generation Incentive Program (SGIP) offers rebates that can offset the cost of a solar battery. This program is particularly valuable for those looking to have backup power in case of outages, which is especially important in California due to wildfires and grid reliability issues.
Property Tax Exclusion
One of the best financial incentives for homeowners in California is the property tax exclusion for solar systems. Under this program, installing solar panels won’t increase your property taxes, allowing you to enjoy the full value of your system without any added tax burden.
Local & Private Programs for Additional Savings
In addition to federal and state incentives, private and local programs are available in many California communities. These programs often include additional perks like free batteries, cash-back offers, debt forgiveness, and no-cost home upgrades. Many of these programs are aimed at making solar more affordable for seniors and low-income households.
Here are just a few of the local benefits and programs available:
Free Solar Batteries & Cash-Back Programs
Certain private programs offer free solar batteries when you install solar panels, which provide backup power in case of emergencies. These can be particularly important for homeowners who rely on medical equipment that needs uninterrupted power. Additionally, some programs offer cash-back incentives to help offset the cost of installation.
Debt Forgiveness & Free Weather Stripping
Some local programs provide debt forgiveness or financial assistance to help families cover the cost of solar installation. These programs are especially helpful for seniors, low-income families, or those who might otherwise find it difficult to pay for the system.
Also, many programs offer free weather stripping to increase your home’s energy efficiency, ensuring that your new solar system works even more efficiently.
No-Cost Appliance Upgrades
A few programs in California also offer no-cost upgrades for outdated home appliances, such as replacing old refrigerators, air conditioners, or heaters with more energy-efficient models. These upgrades not only reduce your energy consumption but also improve the overall efficiency of your home—maximizing the benefits of your new solar system.
Solar + New Roof with No Upfront Cost
One of the best-kept secrets in California is that some programs allow homeowners to switch to solar AND get a new roof—all with no upfront cost. If your roof needs repairs or replacement before installing solar panels, this program can encompass both expenses, making it easy for you to start saving without worrying about additional home repairs.
Client Highlight:
Sandy, a senior in Long Beach, was able to take advantage of the roof replacement and solar installation with a battery through a local program. She’s now enjoying backup power for her medical equipment during power outages and has already noticed a significant decrease in her electricity bill—all without paying a dime upfront.
Navigating Solar Incentives: We’re Here to Help
With so many programs available, navigating these incentives can be overwhelming. But we’re here to help you every step of the way. Our team works closely with local and state agencies, as well as private programs, to make sure you qualify for every available rebate, tax credit, and incentive.
Whether you’re a homeowner looking to go solar for the first time, a senior citizen looking for additional assistance, or someone who wants to combine solar with a roof replacement, we’ll make sure you get the best deal possible.
Take Advantage of These Incentives Today
The financial incentives available to California homeowners make going solar more affordable than ever. With federal tax credits, state rebates, and local programs providing thousands in savings, there’s never been a better time to switch.📞 Contact us today to see which programs you qualify for, and let’s start helping you save!