Going solar is a smart investment, and there are several programs available to help make it more affordable. With federal tax credits, state incentive programs, and flexible financing options, you can reduce your solar installation costs and increase your long-term savings.
Six Rivers Solar is here to help you take full advantage of these opportunities. We’ve been the North Coast’s leader in renewable energy for over 40 years and can guide you through your options to maximize your savings.
Incentives for Solar Installation in California
There are several California solar incentives available for residential and commercial solar installation. You may also be eligible for additional rebates and incentives through your utility company. Reach out to Six Rivers Solar today for personalized information about the rebates and incentives you qualify for!
| Incentive | Description | Who’s Eligible? |
| Federal Solar Tax Credit | Reduces your federal income tax liability by 30% of your solar installation costs. | Homeowners & businesses with federal income tax liability |
| Direct Pay Solar Tax Credit | Direct payment worth 30% of your solar installation costs. | Governments, non-profits & rural electric cooperatives |
| Self-Generation Incentive Program | Offers rebates for solar plus battery backup installation to income-qualified homeowners. | Customers of PG&E, SCE, SDG&E, and SoCalGas who meet income requirements |
| MACRS Depreciation | Accelerated depreciation method that allows businesses to recover their solar installation costs sooner. | Businesses |
| Property Tax Exclusion | Excludes solar energy systems from property tax assessments. | Homeowners & Businesses |
Federal Solar Tax Credit
The federal solar tax credit, also known as the solar Investment Tax Credit or ITC, is the best solar incentive available in California. It allows homeowners and businesses to reduce their federal tax liability by a percentage of their total solar installation costs for the year they install their system. The solar tax credit in 2025 is worth 30% of your solar installation costs. If your credit is worth more than you owe, you can roll the remainder over to the following year. The ITC is on a step-down schedule, however. It will be reduced in 2033 and eliminated for residential solar in 2035.
Direct Pay Solar Tax Credit
Tax-exempt organizations including governments, non-profits, and rural electric cooperatives are not eligible for the solar tax credit since they don’t pay taxes. You can, however, still benefit from the solar tax credit thanks to a new direct pay (also called elective pay) option. With direct pay, your organization will receive a direct payment worth 30% of its total solar installation costs.
Self-Generation Incentive Program (SGIP)
The Self-Generation Incentive Program helps income-qualified homeowners and businesses install solar battery storage systems. Through the program, customers of PG&E, SCE, SDG&E, and SoCalGas who meet income requirements can receive rebates for solar battery installation. There are enhanced rebates available for customers living in high fire-threat areas, customers who have experienced two or more utility Public Safety Power Shut-offs (PSPSs), as well as low-income and medically vulnerable customers.
MACRS Depreciation for Commercial Solar
MACRS depreciation is a commercial solar incentive that allows businesses to recover some of the costs of their solar installation through accelerated depreciation. Qualifying solar equipment is eligible for a cost recovery period of five years as opposed to the usual ten-year depreciation period. If the ITC is also claimed, the solar owner must reduce the project’s depreciable basis by half the value of the ITC.
Active Solar Energy System Property Tax Exclusion
Solar panels typically increase the value of your home, but in California, they won’t increase your property taxes. Solar energy systems are excluded from property tax assessments and will not affect your existing assessment. This incentive is scheduled to sunset on January 1, 2027, so don’t wait too long to go solar or you could miss out.
Solar Buyback Plans & Net Metering in California
As of April 15, 2023, California is operating under the Net Billing Tariff (NBT)—often referred to as NEM 3.0. With NEM 3.0, customers who install solar will:
- Be compensated for the excess power their system exports back to the grid using an “Avoided Cost Calculator,” rather than retail rates.
- Be billed for electricity usage using new “electrification” rates.
- Be locked into the same energy credit value & incentives for nine years after their signup date.
To maximize the value of your solar energy system under NEM 3.0, we highly recommend installing solar battery storage. With a battery system, you can store your excess power instead of sending it to the grid and use it when the sun goes down and peak electricity rates switch on.
Solar Financing
When it comes to solar financing in California, you have a few different options to choose from:
Home Equity Line of Credit (HELOC)
A home equity line of credit (HELOC) is a loan that lets you borrow money using your home as collateral. It’s one of the most common options for solar panel financing. Coast Central Credit Union’s HELOC, for example, is an excellent option from a local bank that can be used to finance your solar installation. To find the right fit solar loan, we encourage you to reach out to your own bank, the benefit being that you likely already have an established relationship with them that will make securing financing for your system simple and easy.
Sungage Financial Solar Loans
If you would like to explore solar financing outside of your bank, Sungage Financial is a great option. Sungage makes solar financing simple and convenient for homeowners, offering:
- Zero-down solar financing
- Low monthly payments
- Easy online application
- On-the-spot approval
Cash Payment
Cash is always an option in addition to financing. We do not require a down payment or deposit, and we only request funds once your system has been installed.
We Make It Easy to Finance Your Solar Purchase
If you want to learn more about the solar loans and financing options that may be available to you, give us a call and we’ll be happy to provide additional information and help you make the best decision for your solar installation. We offer free, no-obligation consultations so you can talk to an expert without any pressure.
