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 are available for solar and battery storage in California?
California offers incentive programs for qualifying energy-storage and distributed-energy projects, including the Self-Generation Incentive Program (SGIP). SGIP includes incentives for qualifying energy storage and paired solar and storage systems, but eligibility and funding depend on the specific program and customer. Current SGIP budget status should be checked before assuming an incentive is available.
Can I get a rebate for installing a home battery in California?
Some California homeowners may qualify for SGIP incentives for eligible battery storage projects. The CPUC currently lists the Residential Solar and Storage Equity incentive for eligible low-income residential customers, and customers must meet specific program requirements to qualify.
Can Elex Solutions help me find incentives for my project?
Yes. Elex Solutions can review your project requirements and help identify incentive programs that may apply. Since eligibility and program availability can vary, the applicable incentives should be confirmed for your specific property and utility.
Are federal solar tax credits still available for homeowners in California in 2026?
No. The federal Residential Clean Energy Credit under Section 25D is not available for qualifying expenditures made after December 31, 2025.
Is there a California property-tax benefit for installing solar?
Yes. California provides a property-tax exclusion for qualifying active solar energy systems. This means the value of the qualifying solar system is generally excluded from the property’s assessed value, so installing the system does not increase the existing property-tax assessment. The current exclusion is scheduled to sunset on January 1, 2027, subject to applicable requirements.
Do incentives change often? How do I know what's current?
Yes. Energy incentive programs can have different eligibility requirements, funding levels, and availability. For example, the CPUC advises customers to check the current status of SGIP budgets and whether a specific budget is open or closed. Elex Solutions can help you review which incentives may apply to your project based on your property and current program requirements.
