California Maintains Solar and Battery Storage Incentives Despite Federal Tax Credit Changes
California continues to offer several key incentives for solar and battery storage installations, even after the federal residential solar tax credit (Section 25D) ended for new installations after December 31, 2025. The Self-Generation Incentive Program (SGIP) remains active, supporting qualifying behind-the-meter storage, with higher equity and resiliency levels available for specific income, medical-vulnerability, and wildfire-risk requirements. The California Public Utilities Commission's (CPUC) Residential Solar and Storage Equity program also supports eligible low-income households installing paired solar and storage systems. Additionally, the DAC-SASH program is accepting applications for income-eligible homeowners in disadvantaged communities. While the federal tax credit is no longer available for new homeowner-owned systems, third-party system owners may still be eligible for separate business-side clean-energy credits, which can influence contractual pricing for consumers.
