December 1


California Solar Incentives, Tax Credits [2021]


December 1, 2020

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When we think about the State of California, what do we think of? Sunshine, beaches, and warm weather. And while the plentiful sunshine allows homes to run on solar energy, this is only one of the many reasons to go solar in the Golden State. 

If you are still undecided, read on to learn more about the key benefits of solar energy in California, as well as some of the excellent rebates and incentives on offer.

  • California is perfect for solar energy, due to high levels of sunshine
  • The cost of solar panels has dropped by 38%
  • 100% of electricity generation in California is expected to be generated by renewable energy sources by 2045

What are the available California solar incentives and tax credits?

Self-Generation Incentive Program (SGIP)

After you buy a battery system along with your rooftop solar panels in California, you can get a refund for your home solar battery installation. For more information, visit the SGIP’s Program Metrics to see how much funding is currently available.

Single-Family Affordable Solar Housing (SASH)

You may not be aware, but if you are an eligible low-income household, you can receive a one-time up-front, capacity-based incentive of $3,00 for every kW of home solar installed. However, to qualify for SASH, the home must be occupant by the homeowner and/or applicant. 

Note: You must also receive electrical services from PG&E, SCE, or SDG&E. Furthermore, the household’s total income must be 8-% if the Area Median Income.

Local Utility Company Rebates

Residents can get a cash incentive of $100 to $2,000 per kW of home solar installed for up to 4 kW through the City of San Francisco’s GoSolarSF program. However, incentive varies by system size, location, and applicant income so be sure to check this out before applying. 

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Solar Energy System Property Tax Exclusion

Adding a new home solar installation in California or building a house with a solar panel system will ensure your property taxes do not increase until the end of 2024. Furthermore, there is the added benefit of increasing your home value by a massive 3%.

Federal Solar Tax Credit*

If you can buy your solar home system outright, you’re eligible to apply for the federal solar tax credit. What’s more, any homeowners who have a solar energy system installed through December 31, 2020 will be eligible for the 26% federal solar tax credit for the final cost of the system.


The DAC-SASH - Disadvantaged Communities - Single-family Solar Homes program - offers upfront rebates to single-family homeowners in a specific income bracket when they elect to instal solar panels. It’s designed to help people who might not otherwise be able to afford solar panels. 

To be eligible, homeowners must be customers of California Edison (SCE), Pacific Gas and Electric (PG&E), Southern, or San Diego Gas and Electric (SDG&E). 

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Federal ITC Solar Tax Credit

Do not forget about the federal solar incentive. While the State of California has so many state-specific benefits to offer their residents, this incentive can be accidentally overlooked but is a great alternative to any and all of the above. 

The Investment Tax Credit (ITC) is being continued until 2021. So, every homeowner investing in a solar panel system can enjoy a 26% discount in addition to state incentives and rebates. 

The State of California can be a wonderful place to live, especially if you care about the environment and are interested in investing in renewable energy. The above initiatives were created to help us lead greener lives, so be sure to take advantage of them.

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