Incentives, NEM 3.0 analysis, install costs, and installer data — independent research, no industry affiliations
| Incentive | Type | Amount | Status | Expires |
|---|---|---|---|---|
| Federal ITC (Solar Tax Credit) | Federal tax credit | 30% of system cost | Active | Dec 2032 (steps down) |
| Self-Generation Incentive Program (SGIP) | Battery rebate | $150–$1,000/kWh | Active | Budget-limited |
| Net Energy Metering (NEM 3.0) | Export credit | ~$0.04–0.08/kWh avg | Reduced Apr 2023 | Ongoing |
| Property Tax Exclusion | Tax exemption | 100% of solar added value | Active | Through 2027 (renewable expected) |
| Sales Tax Exemption | Tax exemption | None — CA taxes solar equipment | Not available | — |
| PACE Financing | Property-linked financing | $0 down, repaid via property tax | Available | Ongoing |
DSIRE = Database of State Incentives for Renewables and Efficiency. Amounts shown are maximums; actual incentive depends on system size and income tier.
California's Net Energy Metering 3.0 took effect April 15, 2023 for new solar customers of PG&E, SCE, and SDG&E. The core change: export rates for excess solar energy dropped by approximately 75% compared to NEM 2.0, from near-retail rates to so-called "avoided cost" rates.
Solar still makes a strong financial case in California. The state has the highest electricity rates in the continental US at ~27¢/kWh, and self-consumption — using solar power directly in your home — saves at the full retail rate regardless of NEM version. The key shift: system design now prioritises consumption over production.
Practical implications: Size the system to cover daytime consumption, not to maximise export. Pair with battery storage (Tesla Powerwall, Enphase IQ Battery, or equivalent) to shift evening consumption to stored solar. A well-designed 6–8 kW system with a 13.5 kWh battery can still deliver a 7–9 year payback and a positive 25-year return.
| System size | Gross cost | After 30% ITC | Annual savings est. | Payback (est.) |
|---|---|---|---|---|
| 4 kW (small home) | $12,000 | $8,400 | ~$1,000/yr | ~8.4 years |
| 6 kW (average home) | $18,000 | $12,600 | ~$1,500/yr | ~8.4 years |
| 8 kW (typical larger home) | $24,000 | $16,800 | ~$2,000/yr | ~8.4 years |
| 10 kW (large home) | $30,000 | $21,000 | ~$2,500/yr | ~8.4 years |
| + Battery storage (13.5 kWh) | +$12,000–$16,000 | +$8,400–$11,200 | +$400–$800/yr | Extended 2–3 yrs |
Savings estimated on NEM 3.0 self-consumption model, 27¢/kWh retail rate. Battery SGIP rebate ($150–$1,000/kWh) not included. Payback will shorten if SGIP rebate is secured. Consult your installer for system-specific projections.
| Installer | Coverage | Avg rating | CSLB licensed | Notes |
|---|---|---|---|---|
| Sunrun | Statewide | 4.1/5 (18k reviews) | Verified | Largest US residential installer. Lease and PPA financing available. |
| SunPower (Maxeon) | Statewide | 4.3/5 (12k reviews) | Verified | Premium panel efficiency. 25-year comprehensive product and labor warranty. |
| Tesla Energy | Statewide | 3.8/5 (8k reviews) | Verified | Best choice for Powerwall battery integration. Online-only quote process. |
| Baker Electric Solar | Southern California | 4.7/5 (3k reviews) | Verified | Highest-rated regional installer. Exceptional post-install customer service record. |
| Semper Solaris | SoCal · NorCal | 4.6/5 (2k reviews) | Verified | Veteran-owned. Strong battery storage integration offering. |
Rating data aggregated from Google Reviews, Yelp, and EnergySage installer marketplace. Updated Q1 2026. Compare bids from multiple installers via EnergySage — free and non-binding.
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Install cost data is sourced from EnergySage's quarterly market data report, which aggregates quote data from its installer marketplace. Electricity rates from US EIA monthly electric power industry data. Peak sun hours from NREL's PVWatts calculator state averages. Net metering rules from DSIRE and CPUC filings. Installer ratings are aggregated from public review platforms; no installer has paid for inclusion or ranking. This page was last updated March 15, 2026.