California Solar Incentives and Rebates in 2025: Complete Guide

California continues to lead the nation in solar adoption, thanks in part to generous incentive programs. Here's everything you need to know about the incentives available in 2025.

Federal Incentives

Investment Tax Credit (ITC)

The most significant solar incentive is the federal Investment Tax Credit:

Example: A $25,000 solar system qualifies for a $7,500 federal tax credit.

Important ITC Details

California State Incentives

Net Energy Metering (NEM 3.0)

California's net metering program allows you to:

NEM 3.0 Changes:

Self-Generation Incentive Program (SGIP)

For battery storage systems:

Property Tax Exclusion

Solar energy systems are excluded from property tax assessments through 2024 (often extended). This means:

Sales Tax Exemption

Solar equipment is exempt from California sales tax, saving you approximately 7.25-10.25% depending on your location.

Local Utility Incentives

SMUD (Sacramento)

LADWP (Los Angeles)

SDG&E (San Diego)

PG&E

Special Programs

Low-Income Solar Programs

SASH (Single-family Affordable Solar Homes)

DAC-SASH (Disadvantaged Communities)

PACE Financing

Property Assessed Clean Energy programs allow you to:

Maximizing Your Incentives

Step 1: Claim the Federal ITC

Ensure you have sufficient tax liability or can carry credits forward.

Step 2: Apply for SGIP (if adding batteries)

Submit applications early—funding can be limited.

Step 3: Verify Property Tax Exclusion

Confirm your county is participating in the exclusion program.

Step 4: Explore Local Programs

Check with your utility for additional rebates or special rate plans.

How BlueSky Energy Helps

We navigate the incentive landscape for you:

Act Now

Some incentives have funding limits or expiration dates. The federal ITC is guaranteed through 2032, but state and local programs can change. Contact BlueSky Energy today to lock in current incentives and start saving.