Updated September 14, 2026. Incentive rules change often; every figure below is stated as of September 2026.
Solar incentives in California changed more between 2025 and 2026 than in the previous decade. The federal homeowner tax credit is gone, state battery rebates are waitlisted, and a California property tax break has a hard deadline at the end of this year. This guide covers what Los Angeles homeowners and businesses can still use, what is no longer available, and how to check your own eligibility before you sign anything.
Is the 30% federal solar tax credit still available for homeowners?
No. The Residential Clean Energy Credit (Section 25D), which let homeowners claim 30% of the cost of a system they bought with cash or a loan, expired on December 31, 2025 under the One Big Beautiful Bill Act. Systems placed in service in 2026 or later do not qualify for it.
That means any savings estimate for a home system purchased today should be calculated without a federal credit. If a quote still subtracts 30% from the price of a system you would own, ask the seller to explain it in writing. See the IRS page on the Residential Clean Energy Credit.
Can I still benefit from a federal credit with a solar lease or PPA?
Indirectly, yes. When a third party owns the system (a lease or power purchase agreement), the owner may be able to claim the business-side Clean Electricity Investment Credit (Section 48E) and pass part of that value to you through a lower monthly payment.
Under current law, solar projects that begin construction after July 4, 2026 generally must be placed in service by December 31, 2027 to qualify, and new “foreign entity of concern” sourcing rules apply to equipment. Before signing, ask the provider how the credit is reflected in your price, what happens if the project misses the deadline, and what the payment escalator and end-of-term options are. Compare that offer against buying the system outright.
What federal incentives are still available for businesses?
Businesses that own their system can still claim the Section 48E investment credit, subject to the same construction and placed-in-service deadlines described above, plus prevailing wage, apprenticeship and sourcing requirements for larger projects. The 2027 deadline makes timing the main planning issue for commercial solar projects.
Solar equipment is also depreciable business property, and the One Big Beautiful Bill Act restored 100% bonus depreciation for qualifying property acquired after January 19, 2025. How the credit and depreciation combine depends on your tax situation, so review the numbers with your CPA. See the IRS page on the Clean Electricity Investment Credit.
Does California offer a state solar tax credit or sales tax exemption?
No. California has no state income tax credit for home solar, no general sales tax exemption for residential solar equipment, and no Solar Renewable Energy Certificate (SREC) market like some East Coast states. If you read about those incentives elsewhere, they almost certainly apply to another state.
Will adding solar raise my property taxes in California?
Not if your system is completed before January 1, 2027. California excludes qualifying active solar energy systems from property tax reassessment, and SB 710 (signed in 2025) keeps that exclusion in place for systems completed before the deadline until the property changes ownership.
For systems completed on or after January 1, 2027, the exclusion is scheduled to end, so the added value of new solar could be assessed. A bill to extend it for smaller residential systems, AB 2389, was held in committee in May 2026 and had not passed as of September 2026. If you are considering solar, allow enough time for design, permitting and inspection to finish before the end of the year. Read SB 710 and AB 2389 on the California Legislature’s site.
How is net metering different for LADWP and SCE customers?
It depends on your utility, and it is the single biggest factor in your solar savings. LADWP, which serves the City of Los Angeles, still offers net metering that credits exported solar power against the energy you use from the grid. Southern California Edison customers who installed after April 2023 are on the CPUC’s Net Billing Tariff (often called NEM 3.0), where exported power earns much less than the retail rate.
For SCE customers, that usually means sizing the system to your own usage and pairing it with a battery so you use more of your solar power at home. For LADWP customers, solar alone can still deliver strong bill offsets. See LADWP solar programs and the CPUC net billing page.
Are there rebates for home batteries in California?
There is a state program, but do not count on it for a typical home. The Self-Generation Incentive Program (SGIP) offers battery rebates, yet as of September 2026 its residential budgets, including the budget for income-qualified households, are fully reserved with new applications going to a waitlist. Live budget status is posted on the SGIP program metrics page.
Battery payment programs that pay you to share stored energy with the grid also have limited funding in 2026. The more dependable value of a home battery today is backup power during outages and, for SCE customers, getting more value from your own solar production.
Are there solar programs for income-qualified households?
Yes, in some areas. The Disadvantaged Communities Single-Family Solar Homes program (DAC-SASH), administered by GRID Alternatives, provides no-cost or low-cost solar to income-qualified homeowners in designated disadvantaged communities served by the large investor-owned utilities, including SCE. Funding and availability vary, so check the CPUC page on solar in disadvantaged communities.
How can I check which incentives apply to my home or business?
Start with official sources rather than sales material, and confirm the date on anything you read:
- DSIRE, the national database of incentives, lists California programs and whether they are still active.
- The CPUC California Solar Consumer Protection Guide explains what a solar contract must disclose.
- Your utility’s website (LADWP or SCE) has current interconnection and billing rules.
- Ask us. We will check your utility, your address and your usage, and show you the numbers with and without any incentive.
This is general information, not tax advice. Consult a licensed tax professional about your specific situation.
Get an honest incentive check for your project
PV Sky USA designs and installs residential solar, commercial systems and battery backup across Los Angeles, and we are a Certified Tesla Installer. Call (818) 378-9204 or request a free consultation, and we will tell you which incentives you actually qualify for, including whether your project can be completed before the January 1, 2027 property tax deadline.
Related: The Real Cost of Solar Panels in Los Angeles (2026)