California Solar Tax Credits, Incentives and Rebates (May 2024) – MarketWatch

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Based on our research into state solar incentives, California offers the following programs to help homeowners save on solar installations.

Disadvantaged Communities—Single-family Solar Homes (DAC-SASH)

Incentive value: $3 per watt of solar capacity ($3,000 per kilowatt)

Frequency: Single-use

The DAC-SASH program offers solar incentives for low-income households that meet certain eligibility requirements. The average cost of installing solar in California is $2.51 per watt, while this program offers an incentive of $3 per watt. In other words, the DAC-SASH incentive can cover the full cost of most solar panel systems.


The DAC-SASH incentive is available for households that meet the following requirements:

  • The home is located in one of the state’s top 25% most disadvantaged communities, as identified by the California Communities Environmental Health Screening Tool.
  • The homeowner is a customer of Pacific Gas & Electric (PG&E), San Diego Gas & Electric (SDG&E) or Southern California Edison (SCE).
  • The applicant has a household income below the CARE Income Guidelines. For June 2023 through May 2024, the limit is $39,440 for a one- or two-person household and increases for larger households.

How To Apply

The DAC-SASH program is managed by GRID Alternatives in California as part of its broader Energy for All program. You can apply directly online. This program will remain available through 2030.

Self-Generation Incentive Program (SGIP): Small Residential Storage

Incentive value: $0.15 per watt-hour (Wh) of battery storage capacity

Frequency: Single-use

The Self-Generation Incentive Program (SGIP) provides rebates for energy storage systems in California. Homeowners can install battery banks along with solar panels to create a 24/7 power supply, which you can use at night, on cloudy days or during blackouts. Combining your battery with solar panels is not required to qualify for the SGIP, but state officials recommend it. California has some of the highest electric rates in the country so recharging batteries without solar panels can become expensive.

SGIP has a program budget with a series of steps, where the incentive rate decreases as SGIP allocates more funds. As of January 2024 the SGIP dashboard specified an incentive rate of $0.15 per watt-hour for small-scale residential batteries. For example, a Tesla Powerwall with an energy storage capacity of 13.5 kWh (or 13,500 Wh) could result in an incentive of $2,025.


To qualify for the SGIP energy storage incentive, you must be a customer of one of the following utility companies:

  • PG&E
  • SDG&E
  • SCE
  • Southern California Gas (SoCalGas)

The SGIP incentive is available for both homeowners and renters (with landlord approval).

How To Apply

SGIP offers energy storage incentives through approved installers. The program has an online tool you can use to find and contact qualified battery installers in your area.

SGIP: Residential Storage Equity

Incentive value: $0.85 per watt-hour of battery storage capacity

Frequency: Single-use

The SGIP has a “Residential Storage Equity” category for low-income households, medically vulnerable users and communities at risk of fire. This category has a higher incentive rate of $0.85 per watt-hour. This means a 13,500-Wh battery, the Tesla Powerwall for instance, could qualify for an incentive worth $11,475.


The Residential Storage Equity incentive has the same requirements as the SGIP incentive described above. However, it is only available for electricity consumers in need, including:

  • Low-income households
  • Medically vulnerable households
  • Communities at risk of power outages because of wildfires

SGIP’s residential brochure has a detailed description of all household types that qualify for the increased incentive of $0.85 per watt-hour. You can also check the disadvantaged communities map, developed by the California Office of Environmental Health Hazard Assessment (OEHHA), to see if you may qualify based on location.

How To Apply

Just like the standard SGIP incentive, the Residential Storage Equity program is offered through approved battery installers. You can contact the program online for more information.

Solar Energy System Property Tax Exclusion

Incentive value: $0 property tax on the value of a solar energy systems

Frequency: Ongoing

California has a property tax exclusion for solar energy systems installed before 2025. The exclusion not only applies to solar panels but also to lithium-ion batteries and many types of solar heating systems.

As a quick example, assume you own a $700,000 home in California. Considering a 0.7% rate, you would pay $4,900 in property taxes per year. If you install a solar panel and battery system for $30,000, the assessed value of your home and its property taxes would stay the same. Without the tax exclusion, a $30,000 home value increase would represent a $210 property tax increase.


  • The property tax exclusion is available for solar energy systems installed before January 2025. Energy storage systems are also eligible if paired with solar panels.
  • The tax exclusion is not available for solar swimming pool heaters, hot tub heaters, passive energy systems and wind energy systems.
  • The tax exclusion is available for homeowners who live on their property and home builders or owners who intend to sell the property.

How To Apply

The solar energy property tax exclusion is automatically applied when you get a building permit.

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