California Solar Guide 2026
Everything California homeowners need to know: costs, incentives, net metering policy, and what makes this state unique for solar.
Key fact about California solar
California has more installed solar than the next 5 states combined, but NEM 3.0 changed the economics significantly — batteries are now essential for maximum savings.
Peak sun hours
5.7
hrs/day avg
Avg electricity rate
28.0¢
per kWh
Median install cost
$3.1/W
before incentives
Typical payback
8 yrs
8 kW system, avg usage
Typical 8 kW system in California
Annual production
16,644 kWh
Year-1 savings
$4,660
System cost (est.)
$24,800
No federal tax credit — Section 25D expired December 31, 2025.
California Net Metering Policy
Net Billing (NEM 3.0)
NEM 3.0 (2023) credits exports at avoided-cost rates (~$0.05–$0.08/kWh), significantly lower than prior full-retail NEM 2.0. Batteries are now far more valuable for CA solar owners.
California Solar Incentives
Available in addition to any utility rebates. Federal 25D credit is $0 for homeowner-owned systems from 2026.
- ✓SGIP battery rebate ($0.15–$0.25/Wh)
- ✓Single-family Affordable Solar Homes (SASH)
- ✓PG&E/SCE/SDG&E low-income programs
Top Utilities in California
Interconnection timeline: 4–10 weeks (SGIP approval can add time)
Calculate your California solar economics
Our calculators are pre-filled with California data. Run any tool below.