Solar in California

Key Solar Metrics

Avg Electricity Rate

32.5¢/kWh

Solar Production Potential

6.2 peak sun hours

Annual Production

1,121 kWh/kW

Net Metering

Net Billing

Incentive Programs

6 active programs

Top Incentive

California Net Billing Tariff (NEM 3.0)

Permitting

Mixed

Major Utilities

City & County of San Francisco (Utility Company)

City of Riverside, California (Utility Company)

Los Angeles Department of Water & Power

Merced Irrigation District

Modesto Irrigation District

Pacific Gas & Electric Co

Sacramento Municipal Utility District

San Diego Gas & Electric Co

Southern California Edison Co

Solar Landscape in California

California's electricity market includes both investor-owned utilities and cooperative/municipal providers. Utility-specific solar programs vary by provider. Residential customers should check with their specific utility provider for available solar incentive programs, interconnection requirements, and export credit rates.

Permitting

California follows local jurisdiction permitting for residential solar installations. Permitting requirements and timelines vary by county and municipality. Homeowners should contact their local building department for specific permit requirements, fees, and inspection schedules. Some jurisdictions in California have adopted streamlined solar permitting processes to reduce installation timelines.

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Solar Incentives & Rebates

State Programs

California Net Billing Tariff (NEM 3.0)

Net Billing Tariff replaced NEM 2.0 on April 15, 2023. Export credits based on avoided cost rates that vary by time-of-use period. Significantly lower than retail rates.

Self-Generation Incentive Program (SGIP)

Battery storage rebate averaging ~$150/kWh for residential systems. Higher incentives for equity/low-income customers.

Per kWhTPO Eligible

$0.00/kWh

California Property Tax Exclusion for Solar

Active solar energy systems excluded from property tax reassessment through January 1, 2025. Extended multiple times historically — check current status.

TPO Eligible

California Solar Access Rights

California Solar Rights Act prohibits HOAs from effectively restricting solar installations. CC&Rs cannot prevent solar. One of the strongest solar access laws in the US.

California Interconnection Standards (Rule 21)

CPUC Rule 21 governs interconnection for all CA IOUs. Streamlined process for systems under 30 kW with smart inverters.

California Solar Permitting Standards (AB 2188/SB 379)

AB 2188 requires all cities and counties to adopt streamlined permitting for small residential solar. SB 379 expanded to include battery storage. SolarAPP+ widely adopted.

California Net Billing Tariff (NEM 3.0)

Policy Type: Net Billing
Credit Type: Time of Use
Annual Credit Rollover: Yes
Effective Date: April 15, 2023

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Run the Numbers for California

Solar in California costs $2.44–$3.83 per watt

National average: $3.36/W

See how much you could save