California and the federal government offer homeowners incentives to adopt residential solar panels and/or home solar batteries. California is the #1 state in the US for solar and offers some of the best solar incentives. As a local San Francisco Bay Area company, we understand our state’s solar incentive programs and are ready to help guide you.

Federal Solar Incentives

The Solar Investment Tax Credit (ITC)

The solar Investment Tax Credit (ITC) is the most lucrative federal solar tax credit incentive program available for homeowners. To be eligible for the ITC, the homeowner must own the residential solar panel and/or battery storage system and have been granted permission to operate it by their utility company.

Through 2022, the ITC will cover 30% of the total cost of your solar power system including batteries. You should start your solar project as soon as possible to qualify for the highest possible savings. The ITC must be applied to the tax year in which the solar system was placed in service. Any remaining ITC can be applied to subsequent tax years as long as tax is owed by the system owner in each of those years.

California Solar Incentives

Solar Energy System Property Tax Exemption

Under Section 73 of the California tax and revenue code, your home or residential property taxes will not increase if you install a new solar energy system by Dec 31, 2024. The value of the solar energy system is exempt and will not trigger a tax reassessment.

Self-Generation Incentive Program (SGIP)

SGIP offers financial incentives to homeowners who install new clean energy technologies that meet some or all of their family’s electricity needs such as a home solar battery. Customers of the following utilities are eligible: PG&E, SCE, SoCalGas, and SDG&E. The SGIP program was created to help reduce greenhouse gas emissions and create a more reliable electric grid in California.

SGIP rebates for homeowners are dispersed in a strict step system that requires early application and a comprehensive monitoring program. Sun Light & Power can tell you whether your solar battery storage system qualifies for a particular phase of the SGIP program and whether funds are available, exhausted, or expected to be refreshed.

Solar Storage Credit offered by MCE (Marin Clean Energy)

Homeowners with solar installations are eligible for programs like the Solar Storage Credit offered by MCE (Marin Clean Energy) present an excellent opportunity to further incentivize sustainable practices. By automating battery discharge from 4-9 p.m. and maintaining a reasonable battery reserve, participants can earn up to $20 per month in bill credits! This savings demonstrates MCE's commitment to rewarding renewable energy adopters.

Rural Energy for America Program (REAP)

Farmers and rural businesses can take advantage of the USDA’s Rural Energy for America Program (REAP) grants and loans for energy efficiency improvements. By combining federal tax credits and depreciation with REAP grants, recipients can slash initial costs significantly, making renewable energy solutions more accessible in rural areas.

Direct Pay

Non-profit organizations, including churches and mosques, can benefit from renewable energy incentives through the Direct Pay provision. This initiative allows tax-exempt entities to receive the 30% federal tax credit as a direct payment, empowering them to invest in sustainable infrastructure without financial constraints.

Get A Solar Quote

Do You Qualify for Federal and California Solar Panel Incentives?

Do you have questions about solar panel incentives in California? Call Sun Light & Power for answers today. We’re here to help make your solar journey as smooth as possible.

Sun Light & Power is a 100% employee-owned Benefit Corp, committed to being a force for good in our community. Our goal is to help California homeowners achieve their dream of going solar and ensure they have an exceptional customer experience.

Save on your solar panel installation with solar rebates and incentives. Call Sun Light & Power at 510.845.2997 or contact us online to get started.

As a GoGreen Financing contractor, Sun Light & Power can offer financing for bundled solar PV + battery storage, EV chargers, and battery storage for pre-existing solar! Financing can include panel upgrades, roof repair, battery enclosure mitigation, permit costs and other necessary work. For solar + storage projects, there is a new lending cap of $75,000 and terms to 20 years.

Interested in GoGreen Business or Multifamily? Learn more about the other program's eligibility and guidelines here.

* Only available for customers who receive electricity from PG&E, SCE or SDG&E.

What is GoGreen Financing?

GoGreen Financing is part of the California Hub for Energy Efficiency Financing (CHEEF), a state-administered program working towards a cleaner and more energy-efficient California. Funds from investor-owned utility ratepayers power the program, and GoGreen partners with finance providers and local contractors to make it happen.

CHEEF is administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), which is housed in the California State Treasurer’s Office. Learn more on the CAEATFA website. The CHEEF and a series of energy efficiency financing pilot programs were authorized by the California Public Utilities Commission (CPUC) and developed in collaboration with the investor-owned utilities:

☀️ Pacific Gas and Electric Company (PG&E®)	☀️ Southern California Edison (SCE®)
☀️ Southern California Gas Company (SoCalGas®)	☀️ San Diego Gas & Electric Company (SDG&E®)

GoGreen Home

GoGreen Home Energy Financing is designed to help California homeowners and renters find attractive financing for their energy efficiency projects.

No home equity needed
Competitive rates
No closing costs or fees
No money down
Can be used to fund other non energy improvements, such as landscaping or home renovations and repairs
Available to borrowers with a wide range of credit scores and incomes
Broad list of energy efficiency projects available

GoGreen's Program Goals

The State of California has ambitious goals to reduce greenhouse gas emissions and address climate change. An important part of achieving these goals and improving air quality is reducing energy use in existing buildings. Billions of dollars are needed for the upgrades, and there is simply not enough government or utility company funding to pay for these investments. The energy efficiency financing programs seek to:

bring about broader and deeper energy savings than can be realized through traditional utility rebate and incentive programs
make more private capital available for energy upgrades, so customers have access to financing to make their homes and businesses more comfortable and efficient
help traditionally underserved customers access attractive financing

Benefits of GoGreen Financing

☀️ Customers can enjoy affordable financing rates and terms.	☀️ Contractors and energy service companies (ESCOs) can access broader energy efficiency projects.
☀️ Finance companies attract new members and customers.	☀️ The State of California reaches its energy savings goals.

Program features

The programs offer finance companies a credit enhancement in the form of a loss reserve. The loss reserve helps mitigate the risk for finance companies because they can access these funds in the case of a default. This allows the finance companies to offer more attractive terms – like lower rates, larger amounts to borrow, or longer time periods for repayment – than they otherwise could. The credit enhancement also allows finance companies to approve financing for a wider base of borrowers than they otherwise could, like homeowners with lower credit scores or small businesses with only a few years of operating history. Additionally, the small business program offers an on-bill repayment option. This allows customers to make, and finance companies to receive, convenient payments for financing charges through the bills of all four investor-owned utilities using the CHEEF infrastructure.

Learn more about program eligibility and guidelines on the GoGreen Financing website at the following links:

☀️ GoGreen Home

☀️ GoGreen Business

☀️ GoGreen Multifamily

Why Go Solar?

When it comes to combining solar energy with your business operation, think of solar as an investment that actually provides a return. A custom designed solar PV system or solar thermal hot water heating system will reduce your operating expenses, protect you from volatile utility costs, show your commitment to the environment and the green business movement, and can even increase the reliability of your electrical system.