UNLEASH GOVERNMENT SAVINGS
INCENTIVES & REBATES
Maximize Rebates on Solar, EV Charges, and Battery Systems
Residential (homeowners)
- Federal tax credit situation for 2026
- Big change: the newer federal law passed in 2025 (“One Big Beautiful Bill”) ends the 30% residential solar + battery tax credit for owned systems after Dec 31, 2025. So if a homeowner buys with cash/loan and installs in 2026, no 30% federal credit.
- How that affects 2026: Residential customers will lean more on California incentives + utility bill savings rather than federal tax credits.
- California battery rebates (SGIP) — still the headline incentive
- SGIP keeps running into 2026 while funds last, and it’s now heavily targeted:
- Equity and Equity Resiliency categories can be very large (often the “game-changer” for homes in high-fire or medical-baseline situations).
- Standard (non-equity) rebates exist but budgets are shrinking and can close when allocated.
- Practical meaning: in 2026, battery incentives are still real, but eligibility & available pots matter a ton.
- SGIP keeps running into 2026 while funds last, and it’s now heavily targeted:
- Net billing / NEM 3.0 continues to favor batteries
- Under Net Billing Tariff (aka NEM 3.0), export compensation is low in most hours, so the economics push homeowners toward self-consumption + storage.
- Translation for 2026: even without the federal credit, solar-plus-battery often pencils better than solar-only because the battery lets you avoid buying peak-price power and avoid exporting cheap kWh.
- Other CA residential items to be aware of
- Property-tax exclusion for solar is still in place through end of 2026 (currently scheduled to expire Jan 1, 2027).
- Some sources mention possible 2026 NEM tweaks (AB 942 chatter), but details are still unsettled and not something I’d bank a proposal on yet.
no federal 30% credit if installed/placed-in-service in 2026 for owned systems.
Batteries
SGIP is still the main state incentive, especially for Equity/Resiliency homes.
Economics
still strong for solar + battery, driven by NEM 3.0 rate arbitrage and outage value.
Commercial (business / C&I)
- Federal commercial credits still exist in 2026 (with conditions)
- Commercial solar/storage uses Section 48 / 48E ITC-style credits. These remain available in 2026, but the 2025 law set a tighter timeline and earlier sunset than the IRA originally did.
- Key points for 2026 projects:
- Projects that “begin construction” by mid-2026 can lock in the higher credit structure before phase-down/sunset windows later in the decade.
- To get the full ~30%, projects generally must meet prevailing wage & apprenticeship rules; otherwise base credit is much smaller.
Commercial (business / C&I)
- Federal commercial credits still exist in 2026 (with conditions)
- Commercial solar/storage uses Section 48 / 48E ITC-style credits. These remain available in 2026, but the 2025 law set a tighter timeline and earlier sunset than the IRA originally did.
- Key points for 2026 projects:
- Projects that “begin construction” by mid-2026 can lock in the higher credit structure before phase-down/sunset windows later in the decade.
- To get the full ~30%, projects generally must meet prevailing wage & apprenticeship rules; otherwise base credit is much smaller.
- SGIP for commercial storage
- SGIP is also available for non-residential customers in investor-owned utility territories (PG&E, SCE, SDG&E, SoCalGas).
- Rebates are typically smaller per-kWh than Equity Residential levels, but still meaningful for:
- Peak shaving / demand charge reduction
- Resiliency for critical loads
- Solar-paired storage monetizing TOU spreads
- Net billing / tariff value
- For C&I, tariff value comes from:
- Demand-charge management
- TOU arbitrage
- Sometimes export value adders depending on utility and program windows
- NBT/NEM 3.0 itself is residential-focused, but the overall CA rate direction still rewards load shifting with batteries.
- For C&I, tariff value comes from:
- Depreciation & adders
- Businesses can still stack:
- ITC + accelerated depreciation (MACRS/bonus)
- Potential ITC “adders” (energy community, domestic content, etc.) if they qualify.
- Businesses can still stack:
Federal ITC is still on the table in 2026, unlike residential—but start-construction timing and labor rules matter for full value.
SGIP storage rebates remain a solid CA stacker.
Best economics are still solar + storage, especially where demand charges are painful.
Quick summary
- Homeowners in 2026: “Federal 30% credit is gone, but with Elex Solutions, California SGIP can still cover a big chunk of the battery—especially if you qualify for Equity/Resiliency—and NEM 3.0 makes batteries the smart play.”
- Businesses in 2026: “Federal ITC + depreciation are still strong if we start construction on time and meet labor rules, and SGIP helps the storage side. We design around demand-charge and TOU savings.”
FAQ’s
What incentives can I still get in California?
The big one is SGIP (Self-Generation Incentive Program), a state rebate for home batteries. It’s still running in 2026 while funds last. There’s also a property-tax exclusion for solar, currently scheduled to run through the end of 2026.
Are there battery storage rebates available for California homeowners?
Yes. California’s Self-Generation Incentive Program (SGIP) provides battery storage rebates for eligible customers. Some of the highest incentives are targeted toward qualifying Equity and Resiliency customers, while standard rebate funds may also be available depending on program funding.
Can Elex help me figure all this out?
That’s exactly what we do. We’ll look at your home or business, explain which incentives fit, and design the system around them. Book a free consultation, or call us at 415 326 3259 (Mon–Fri, 8 AM–6 PM).
Are solar tax credits still available for homeowners in 2026?
The federal residential 30% tax credit for certain homeowner-owned solar and battery systems changed for 2026 under federal legislation enacted in 2025. California incentives and utility savings may still be relevant, but eligibility should be reviewed based on the project’s specific circumstances.
How does a battery save a business money?
Mostly by managing demand charges and shifting usage away from peak-rate hours. That’s usually where a business’s biggest savings come from.
Do incentives change often? How do I know what's current?
Yes, programs, budgets, and deadlines shift, and some rebate pools close without much warning. That’s why we walk you through what applies to your property right now instead of guessing.