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California Solar Incentives: Tax Credits & Rebates Guide 2023

Written by Caitlin Ritchie/

Edited by Jamie Cesanek

Last updated 05/18/2023

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Key Points

  • The average 5-kilowatt solar panel system in California costs $19,650.
  • California residents pay higher electric rates and could save more than $700 each year on energy bills with solar panels.
  • NEM 3.0 is California’s revised net metering program that lowers the amount residents receive for sending excess solar to the grid.

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California solar power FAQs

  • Yes, California’s solar mandate requires that new construction single-family and multi-family homes up to three stories high have a solar system installed. The mandate went into effect at the beginning of 2020. Some homes may be exempt, including those with a roof too small for solar panels or in a heavily shaded area.

  • Currently, solar equipment is exempt from sales and use tax in California. This exemption will expire in 2030 unless it is renewed. Some solar systems will also qualify for an exclusion from property taxes.

  • California has enough solar capacity installed to power more than 10.7 million homes, according to the SEIA. The Golden State currently has almost 40,000 MW of solar capacity, and the SEIA expects the state will continue to add capacity in the next several years.

  • Solar power can be an excellent investment, especially if you live somewhere with plenty of sunshine, such as California. Not only will you lower your monthly electricity bill, but you can also increase the resale value of your home. In California, you will be exempt from increases on your property tax if you install solar panels on your home, which has incentivized many homeowners.

  • The right solar installer for you will depend on several factors, including the installer’s service areas, warranty terms, and financing options. Of course, the price will also play a role in narrowing down your choices because you will need to find an installer that works for your budget. If you are searching for a solar installer in your area, SaveOnEnergy can help match you with a top-tier installation company. Fill out the form on this page or call the number on your screen to speak with one of our solar energy experts.

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