California Solar Incentives in 2026 — What Is Still Available

The Federal Tax Credit — What Changed

The 30% federal Investment Tax Credit (ITC) for customer-owned residential solar systems expired at the end of 2025. Systems purchased outright with cash or financed with a solar loan in 2026 no longer qualify for the homeowner-claimed 30% credit that defined the past several years of solar economics.

Systems installed in 2026 may still benefit from the 48E federal tax credit, but that credit applies to residential leases and PPAs — where the solar company owns the system — not to cash purchases or loans. The benefit shows up indirectly in the lease or PPA pricing rather than as a credit on your tax return.

This is a significant change from previous years. Homeowners who waited for “a better deal” missed the full 30% homeowner credit. We recommend talking to a qualified tax professional about how your specific situation interacts with current federal rules.

California Property Tax Exclusion

California allows homeowners to install qualifying solar without triggering a property tax reassessment. Without this exclusion, adding a solar system would typically increase your assessed value and your annual property taxes — meaningfully eating into your savings.

The current exclusion is set to expire after 2026. Systems installed before January 1, 2027 lock in the property tax exclusion under existing law. For homeowners considering solar, that timing is worth knowing.

DAC-SASH Program for Low Income Homeowners

The Disadvantaged Communities Single-family Affordable Solar Homes (DAC-SASH) program offers an incentive of $3.00 per watt for solar systems between 1 and 5 kW for qualifying low-income homeowners who are PG&E, SCE, or SDG&E customers.

Income limits run roughly $52,875 for one- to two-person households and $94,125 for larger families through May 2026. For homeowners who qualify, DAC-SASH is one of the strongest remaining solar incentives in the state.

SGIP Battery Rebates — Limited Availability

The Self Generation Incentive Program (SGIP) historically offered meaningful rebates for home battery storage. In 2026, most general-population SGIP funding has been reserved or is no longer available to typical homeowners.

New applications are now generally limited to the Residential Solar and Storage Equity (RSSE) program funded by AB 209. RSSE is primarily available to low-income households and customers in disadvantaged or high fire-risk areas.

Even within those eligibility groups, much of the funding is already reserved and applications are commonly added to a waitlist. Honest summary: SGIP is largely unavailable to most homeowners in 2026.

Local Utility Programs

Some local utilities and municipalities offer their own programs. SMUD customers in the Sacramento area, for example, generally have stronger options than PG&E customers. Some cities also offer permit fee waivers worth $200 to $800.

Availability varies significantly by location and programs change frequently. Contact your utility and your city’s building department directly to verify what is currently offered in your specific area.

What This Means for Fresno and Madera Homeowners

The loss of the federal tax credit makes solar economics more dependent on your specific home and bill than in previous years. There is no longer a single big federal subsidy doing the heavy lifting for everyone.

That said, with PG&E rates among the highest in the country and Central Valley summers driving electricity bills to $300–$500 per month, the underlying economics still work for many homeowners. The key now is getting an honest assessment of your specific situation rather than relying on general estimates.