Incentives · Updated 2026

Government Incentives for Solar Roof Installations

What California homeowners can still claim in 2026 after the federal tax-credit change, from battery rebates to net billing and property tax rules.

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By Green Conception·Updated September 10, 2026·8 min read

In 2026, the biggest change is federal: the 30 percent residential solar tax credit ended for homeowner-owned systems placed in service after December 31, 2025. A federal credit still applies to third-party-owned systems such as leases and power purchase agreements. At the state level, California homeowners may still benefit from battery storage incentives through SGIP, the net billing tariff for exported power, low-income solar programs, and a property tax exclusion that runs through 2026.

What Changed Federally in 2026

The Section 25D residential clean energy credit, worth 30 percent of system cost, applied to systems placed in service through December 31, 2025. It is no longer available for systems you own, whether purchased with cash or a solar loan. Importantly, the credit is tied to when installation is completed, so a deposit paid in 2025 does not qualify a system finished in 2026. A federal credit still exists for third-party-owned systems, where the leasing company or power purchase provider claims it. If keeping a federal incentive matters to you, a lease or power purchase agreement is the structure to discuss.

California Incentives That Still Help

Battery Storage Incentives (SGIP)

California's Self-Generation Incentive Program offers rebates for home battery storage, with larger incentives reserved for income-qualified and equity applicants. Availability varies by utility and program tier, so eligibility should be checked case by case.

Net Billing for Exported Power

Under California's net billing tariff, the power your system sends to the grid earns a credit. Customers of PG&E and SCE who interconnect before the end of 2027 can receive higher export credits for nine years.

Low-Income Solar Programs

Programs such as DAC-SASH provide upfront incentives, around 3 dollars per watt, for qualifying households in disadvantaged communities, running through 2030.

Property Tax Exclusion

California excludes the added value of a qualifying solar system from your property assessment. This exclusion applies to systems qualifying before January 1, 2027.

Act While the Timing Favors You

Several California incentives are time-sensitive. The property tax exclusion applies to systems qualifying before January 1, 2027, and the higher net billing export credits for PG&E and SCE customers depend on interconnecting before the end of 2027. Battery incentive tiers open and close as budgets are used. A free assessment identifies exactly which incentives your household qualifies for and builds them into your quote and financing.

Frequently Asked Questions

What government incentives are available for new solar roof installations?

In 2026, California homeowners may benefit from battery storage rebates through SGIP, credits for exported power under the net billing tariff, low-income programs such as DAC-SASH, and a property tax exclusion for systems qualifying before January 1, 2027. The 30 percent federal residential tax credit ended for owned systems after December 31, 2025.

Is the 30 percent federal solar tax credit still available in 2026?

Not for systems you own. The federal residential credit ended for homeowner-owned systems placed in service after December 31, 2025, including cash and loan purchases. A federal credit still applies to third-party-owned systems such as leases and power purchase agreements, claimed by the system owner.

Are there battery storage incentives in California?

Yes. California's Self-Generation Incentive Program offers rebates for home battery storage, with the largest incentives reserved for income-qualified and equity households. Availability depends on your utility and the program tier, so eligibility should be confirmed for your address.

Does solar increase my property taxes in California?

No, not through 2026. California excludes the added value of a qualifying active solar energy system from your property assessment, so installing solar does not raise your assessed value. This exclusion applies to systems qualifying before January 1, 2027.

How does net billing affect my savings?

Under California's net billing tariff, exported power earns a credit at a lower rate than the retail price you pay, which makes using your own production, often with a battery, more valuable. PG&E and SCE customers who interconnect before the end of 2027 can receive higher export credits for nine years.