State guide · facts checked July 2026
California is the biggest solar market in the country and, right now, the most confusing one to buy in. The federal tax credit for purchased systems ended December 31, 2025. Export credits were cut roughly 75% under NEM 3.0. A lot of sales pitches have not caught up with either fact.
Here is the honest picture as of July 2026, with sources at the bottom.
The price
Competitive quotes in California average about $2.45 per watt before incentives right now (EnergySage marketplace data, July 2026). Los Angeles runs around $2.41, San Diego $2.56, San Francisco $2.61.
Door-to-door and lease quotes routinely land at $3.50 to $5.00 per watt for the same hardware. If your quote is above $3.00, get two more quotes before you sign anything.
Check your quote against this, freeExports
If you go solar with PG&E, SCE, or SDG&E today, you are on the Net Billing Tariff (NEM 3.0). You buy power at retail time-of-use rates, commonly $0.35 to $0.50+ per kWh, but your exports earn avoided-cost values that average only about $0.05 to $0.08 per kWh. That is roughly a 75% cut versus the old NEM 2.0 retail crediting, and it is settled law: the court challenge ended June 10, 2026, when the California Supreme Court declined to hear the case.
This is why nearly every serious California quote now includes a battery. Midday exports are close to worthless, but evening power is expensive, so storing your own solar and using it after sunset is where the savings actually live. The CPUC's own numbers show about 70% of new solar customers pair storage.
Two more things the rep may not mention: your export rate schedule locks for 9 years from interconnection, and the new Base Services Charge (about $24 a month on the big three utilities) cannot be offset by solar. A well-designed system gets your bill low, not zero.
Incentives
Ended December 31, 2025 under the July 2025 federal law. What counts is when installation is completed: a system finished in 2026 gets $0 even if you signed in 2025. Any rep promising "30% back" on a 2026 purchase is wrong about the single biggest number in the deal.
Leasing companies can still capture a federal credit on systems they own, on a winding-down schedule. That credit goes to the finance company, not you, and passing the savings through is their pricing choice. Do not let anyone count it as money in your pocket.
The state battery program is real but largely waitlisted for new residential applicants as of mid-2026, including the equity budgets. Check live status at selfgenca.com before believing any rebate number in a quote. A waitlist position is not a sign-tonight deadline.
Solar does not raise your assessed property value, but this exclusion sunsets January 1, 2027 for new installs. If a rep cites this as a reason to move in 2026, that one is actually true. It is also months away, not tonight.
If your income qualifies (CARE/FERA level) and you live in a designated disadvantaged community, GRID Alternatives can cover most or all of a system. Authorized through 2030 and accepting applications. No commissioned salesperson will lead with this; check gridalternatives.org yourself.
Does not exist. California has no state income tax credit for solar and no sales tax exemption either. If a quote's savings math includes a "state credit," the math is wrong.
What they gloss over
What you hear
"You still qualify for the 30% federal tax credit."
What's true
Not on a purchase installed in 2026 or later. It ended December 31, 2025. On a lease, the finance company gets a credit, not you.
What you hear
"The utility buys back your extra power at full price."
What's true
NEM 3.0 pays roughly $0.05 to $0.08 per kWh for exports while you buy at $0.35 to $0.50. Anyone sizing your system to "sell the extra back" is designing it to lose money.
What you hear
"Your electric bill will be zero."
What's true
The Base Services Charge, about $24 a month, cannot be offset by solar, and imports carry non-bypassable charges. Low is achievable. Zero is not.
What you hear
"NEM 3.0 is about to be overturned, get in now."
What's true
The legal fight is over. The California Supreme Court declined the case on June 10, 2026. NEM 3.0 stands, and your real protection is the 9-year export rate lock you get when you interconnect.
What you hear
"This price is only good if you sign tonight."
What's true
California law gives you at least 3 business days to cancel after signing, the CPUC requires you to receive and sign its Solar Consumer Protection Guide first, and the contract's cover page must be the CSLB disclosure. In February 2026, Vivint Solar paid a $4.3M settlement over exactly these pressure tactics. No honest deal expires tonight.
Your city and utility
Permitting and interconnection are local. We keep a plain-English database of both for California:
Sources
Every claim above was checked against a primary source in July 2026. Policies change; if you spot something stale, trust the source over us and tell us.
Educational guidance for your own research, not financial, tax, or engineering advice. Verify current rates and program status with your utility and a licensed professional before signing anything.