Going solar in California looks very different in 2026. The federal credit for buyers is gone, most utilities pay little for exported power, and a property tax deadline is coming. Here are 10 things to know before you sign, from your utility's rules to your rights under state law.
For many homes, yes. Most utilities now pay little for exported power, but rates have roughly doubled since 2016 for SCE and SDG&E customers, so using your own solar saves a lot. Size the system to your real usage.
Going solar in California is still one of the best ways to take control of rising electric bills, but the rules have changed a lot in the past few years. Advice that was true in 2022 can cost you money today.
Before you sign a contract, here are 10 things every California homeowner should know in 2026, from how your utility credits solar to the consumer protections built into state law.
Use this table as a quick reference. Each item is explained in detail below.
| What to check | What you want to see |
|---|---|
| Tax credit on a purchase quote | No 30% federal credit subtracted; it ended Dec 31, 2025 |
| Your utility's export rules | SCE, PG&E, SDG&E: about 5 to 8¢/kWh (NEM 3.0); LADWP: retail credit |
| Bill model | Includes the Base Services Charge (about $24/month on SCE and SDG&E) |
| Battery plan | Battery or battery-ready design if you are on NEM 3.0 |
| Property tax timing | System qualifies before Jan 1, 2027 to keep the exclusion under SB 710 |
| Contractor license | Active CSLB C-46, C-10 or B license; registered salesperson |
| Contract terms | Disclosure document on page one; deposit no more than $1,000 or 10%; 3-day cancellation (5 if 65+) |
| Roof and electrical panel | Roof life checked; panel upgrade identified before signing |
| Equipment | Year-25 power guarantee in writing; stable manufacturer |
| System size | Based on 12 months of your actual bills |
The 30% federal credit for homeowners who buy their system (Section 25D) ended on December 31, 2025. Systems purchased in 2026 do not qualify, so any quote that subtracts a 30% credit from a purchase price is out of date.
Leases and power purchase agreements are different. The solar company owns the system and can still claim a commercial credit under Section 48E if the system is placed in service by the end of 2027, and some of that value may be passed on through lower monthly payments. Buying and leasing each have trade-offs, so compare the total 25-year cost of both.
Who delivers your electricity matters more than almost anything else.
SCE, PG&E and SDG&E customers who went solar after April 2023 are on the Net Billing Tariff, often called NEM 3.0. Exported solar typically earns about 5 to 8 cents per kWh, while you still pay full retail for power you buy. Savings come mostly from using your own solar.
LADWP customers are on LADWP's own net metering program, which credits exports at the retail energy price. That makes the math simpler and a battery less essential.
Other municipal utilities set their own rules. Riverside Public Utilities, for example, credits exports at an avoided-cost rate, and Anaheim Public Utilities uses a wholesale-based rate. Always ask how your specific utility credits exports.
According to the California Public Advocates Office, SCE rates rose about 101% and SDG&E rates about 97% from January 2016 to June 2026, while inflation rose about 42%. SCE's average residential rate was 34.4 cents per kWh in June 2026.
Bills also changed shape. SDG&E added a Base Services Charge of about $24 a month in October 2025, and SCE followed in November 2025, with lower amounts for CARE and FERA customers. In exchange, per-kWh rates dropped by roughly 10%. Solar cannot offset that fixed charge, so a good proposal models your bill with it included. Our breakdown of rising electricity costs in Southern California explains what is driving the increases.
Because midday exports earn so little for SCE, PG&E and SDG&E customers, storing your solar and using it during the 4 to 9 PM peak is where much of the savings comes from. A battery also keeps essential circuits running during an outage.
California's Self-Generation Incentive Program (SGIP) can help with battery costs, but the general-market residential budget is currently waitlisted. The Equity and Equity Resiliency tiers are still funding qualifying customers. Our guide on whether batteries are worth it for solar in California walks through the numbers.
In California, qualifying solar systems are excluded from property tax reassessment under Revenue and Taxation Code Section 73. Under SB 710, systems that qualify before January 1, 2027 keep that exclusion until the home changes ownership.
A bill to extend the exclusion to later installations, AB 2389, stalled in committee in 2026. If your system is completed after the deadline, it may not qualify under current law. Our guide to the California solar property tax exemption covers the details.
California has some of the strongest solar consumer protections in the country. Before signing, confirm the following.
License: Your installer must hold an active Contractors State License Board license with a C-46 (Solar), C-10 (Electrical) or B (General) classification. Salespeople who sell home improvements must also be registered with CSLB.
Disclosure document: Contracts must include the state's Solar Energy System Disclosure Document on the first page, showing total cost, payments and key terms in plain language.
Deposit: For home improvement contracts, the down payment is capped at $1,000 or 10% of the contract price, whichever is less.
Cancellation: You have at least three business days to cancel, or five if you are 65 or older.
Consumer guide: SCE, PG&E and SDG&E customers must receive the CPUC's California Solar Consumer Protection Guide before signing. Our guide on how to choose a solar company in Los Angeles covers more red flags.
Panels stay on your roof for 25 years or more. If your roof is near the end of its life, replace it first, because removing and reinstalling panels later costs far more.
South- and west-facing roof planes produce the most, and west-facing panels help cover late-afternoon air conditioning. Shade from trees or neighboring buildings can cut output, so ask for a shade analysis.
Many older California homes have 100 to 125 amp electrical panels. Some need an upgrade to 200 amps to support solar, a battery or an EV charger. A good installer identifies this during design, not after you sign.
If you live in a community with a homeowners association, know that California's Solar Rights Act limits how far an HOA can restrict rooftop solar. An association can set reasonable rules, but it cannot ban solar or impose conditions that significantly raise the cost or reduce the system's performance. Submit your plans for review early so approval does not delay installation.
Nearly every residential panel sold today is monocrystalline, so the old mono-versus-poly debate no longer matters much. What does matter:
Heat performance. California roofs get hot. A panel's temperature coefficient tells you how much output it loses as it heats up. At 60°C, a panel rated -0.29%/°C loses about 10%, while one rated -0.24%/°C loses about 8.4%.
Year-25 guarantee. Look for the exact percentage of power guaranteed at year 25, not just "25-year warranty."
Company stability. SunPower filed for bankruptcy in 2024, Panasonic left solar in 2025, and Maxeon entered restructuring in 2026. A warranty is only as good as the company behind it. Our best solar panels comparison covers the leading brands.
Under NEM 3.0, an oversized system exports extra power for very little credit, and an undersized one leaves savings on the table. The right size comes from a full year of your utility bills, because usage in a hot inland summer can be double what it is in spring.
Ask any installer how they sized your system and what usage data they used. A quote based on a single month's bill, or on square footage alone, is a warning sign. You can run a quick estimate with our solar calculator before you talk to anyone.
Think about the next few years, too. If you plan to buy an electric vehicle, switch to a heat pump or add a pool, your usage will rise. Tell your installer, so the design leaves room to add panels or a battery later without redoing the whole system.
The process usually takes a few weeks to a few months from contract to switching on. California's SB 379 requires larger cities and counties to offer automated online permitting for standard residential systems, which can speed up approval. Batteries and non-standard designs may still need plan review.
After installation, the local building department inspects the system, and then your utility grants permission to operate. That last step can take a few weeks. Do not turn the system on before you have permission from your utility.
US Power is built around the checklist above. Every proposal starts with a 12-month bill analysis, so your system is sized to your real usage and your utility's rules. As a factory-direct Qcells partner, US Power installs Qcells panels and batteries at 15 to 20% below typical market pricing. You can see how the Qcells warranty process works before you buy.
Every system includes a 25-year comprehensive warranty covering panels, installation and workmanship. US Power is CSLB-licensed, has more than 200 five-star Google reviews, and typically completes installation within 3 to 4 weeks once your design is approved. For a step-by-step walkthrough, see our homeowner's guide to solar in California.
Going solar in California still makes sense for many homes, but the details decide whether it pays off. Know your utility's rules, get a proposal based on real bills, check the contractor and the contract, and choose equipment backed by a company that will be around for 25 years.
Ready to see your numbers? Get your free solar quote.
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