Lock in your 2026 California solar property-tax exclusion before it sunsets
Air & Plumbing Systems helps Bay Area homeowners navigate the rebate, financing, tax-credit & stacking-strategy programs that still apply in 2026.
Start here — the two anchors that apply to nearly everyone
California Property-Tax Exclusion: Jan 1, 2027 Sunset
California excludes the added value of a new solar system from your property-tax basis — but only if it’s operational (or under construction) before January 1, 2027. On a typical 8 kW system that’s about $11K–$13K saved over 25 years.
Talk about your 2026 solar timelineFederal §48E: How the 30% Credit Still Flows in 2026
§25D expired, so direct-purchase solar no longer claims the 30% credit. The same value flows through Section 48E when the installer owns the system under a lease or PPA — showing up as a lower monthly payment.
Ask about PPA vs lease structures for your homeCalculate Your Savings
Enter your ZIP & household basics to see your eligible program stack and estimated annual savings.
Why solar economics changed in 2023, and what it means for 2026
Until April 2023, California solar exported excess electricity at near-retail rates ($0.30–$0.40/kWh) under NEM 2.0. The Net Billing Tariff (NEM 3.0) replaced that with “avoided cost” pricing, where midday exports pay just $0.05–$0.08/kWh. Solar-only paybacks stretched from 6–8 years to 12–15.
Battery storage closed the gap — charging midday and discharging during the 4–9 PM peak when grid rates hit $0.40–$0.55/kWh. Solar + battery paybacks are back in the 7–9 year range, with the property-tax exclusion locking in long-term value. We model your specific NEM 3.0 math at the estimate.
Programs that may apply to you
Pick your city above and the matching programs expand automatically.
What it covers: Excludes the added assessed value of a new solar or solar-plus-storage system from property tax
Details: The exclusion is a new construction exclusion, not an exemption: it keeps the added value of a qualifying solar system from increasing your existing property tax assessment. Systems installed before 2027-01-01 qualify. If this link is unavailable, contact your county assessor’s office for the current exclusion form.
Eligibility: Solar PV and solar-plus-storage; not stand-alone batteries; active before 2027-01-01
View official program page →What it covers: Rebate for home battery storage and solar (Residential Solar and Storage Equity budget)
Details: Residential Solar and Storage Equity budget: storage $1,100/kWh, solar $3,100/kW, $280 million budget, reservations open since June 2, 2025. Must enroll in a qualified Demand Response program within one year of reserving funds. Older tiers for San Joaquin Valley Residential, Equity Resiliency, and Small Residential Storage were only available through 2025 and are no longer open.
Eligibility: Only low-income residential customers can currently reserve funds, under the Residential Solar and Storage Equity budget. Other residential tiers (San Joaquin Valley Residential, Equity Resiliency, Small Residential Storage) are no longer accepting new reservations. Requires enrollment in a qualified Demand Response program within one year of reserving funds.
View official program page →What it covers: Portable backup power system (generator or battery) rebate
Details: $300 rebate for adding a portable backup power system (generator or battery) to your home, plus $200 more if you participate in PG&E’s CARE or FERA program.
Eligibility: PG&E residential customers located in a Tier 2 or Tier 3 High Fire-Threat District and served by an Enhanced Power Safety Settings (EPSS) circuit.
View official program page →What it covers: Solar and battery (or standalone battery) at little or no cost for income-qualified San Jose homeowners
Details: No out-of-pocket through SGIP; includes 10 years of maintenance. Also available as a standalone battery (solar not required). Funds are limited and available on a first-come, first-served basis, so it’s best to check eligibility soon.
Eligibility: SJCE customer; own and occupy a single-family home under 3,500 sq ft in San Jose; income at or below 80% AMI
View official program page →What it covers: Home battery storage integrated with solar PV
Details: $0.15 per Wh up to $2,700; +$2,000 FRAP and +$2,000 LIHEAP income-qualified bonuses. Battery at least 3 kWh; must integrate with a solar PV system
Eligibility: City of Santa Clara SVP customer who owns the PV system
View official program page →What it covers: Free solar PV system for income-qualified homeowners
Details: Grant of $3.50/watt up to 3 kW DC (a free PV system).
Eligibility: City of Santa Clara SVP homeowner; current FRAP customer for more than one year
View official program page →What it covers: Maintenance of an existing solar PV system
Details: Up to $1,500 for PV tune-up by a CA-licensed contractor; one per address per 12 months
Eligibility: City of Santa Clara SVP customer with an existing operating PV system
View official program page →What it covers: Smart electrical panel (SPAN, Lumin, Koben)
Details: $4,000, plus $1,000 to $2,000 income-qualified bonus. For projects on or after 2025-07-01
Eligibility: City of Santa Clara SVP customer
View official program page →What it covers: Main electrical service panel upgrade (add-on)
Details: $1,500 base rebate, plus $500 FRAP and $500 LIHEAP income-qualified bonuses. Add-on rebate; requires another SVP home electrification rebate already in progress.
Eligibility: City of Santa Clara SVP customer with another SVP home electrification rebate in progress
View official program page →What it covers: New electrical circuits prewired for future electric appliances (add-on rebate)
Details: $500 per circuit, up to $2,000 for 4 circuits; plus FRAP $250 and LIHEAP $250 per circuit (up to $1,000 for 4 circuits) income-qualified bonus. Add-on rebate; requires another SVP home electrification rebate already in progress.
Eligibility: City of Santa Clara SVP customer with another SVP home electrification rebate in progress
View official program page →What it covers: Circuit pauser or splitter device to manage electrical load on an existing panel (add-on rebate)
Details: $50 base rebate, plus $50 FRAP and $50 LIHEAP income-qualified bonuses. Add-on rebate; requires another SVP home electrification rebate already in progress.
Eligibility: City of Santa Clara SVP customer with another SVP home electrification rebate in progress
View official program page →What it covers: Grant to help Homeowners Associations fund energy-efficiency upgrades to common areas
Details: Grant of up to $25,000 per HOA for common-area energy-efficiency upgrades.
Eligibility: City of Santa Clara SVP-served Homeowners Association (common areas, not individual units)
View official program page →What it covers: No-cost rooftop solar for low-income homeowners in disadvantaged communities
Details: No-cost solar system via GRID Alternatives, backed by $8.5 million in incentives annually
Eligibility: CARE or FERA income eligible; home in a top-25% CalEnviroScreen disadvantaged community; PG&E, SCE, or SDG&E
View official program page →What it covers: Policy context, not a rebate: how new solar exports are credited
Details: Exports credited at the grid’s hourly value (lower midday, higher evening), which is why solar-plus-battery is now the common design. New residential solar on PG&E, SCE, or SDG&E takes service on the net billing tariff, in effect since April 15, 2023. Residential PG&E and SCE customers who interconnect before the end of 2027 receive a nine-year export compensation adder (higher bill credits for exported energy). New solar customers must take service on an electrification TOU rate: E-ELEC for PG&E, TOU-D-PRIME for SCE, EV-TOU-5 for SDG&E.
Eligibility: All new residential solar on PG&E, SCE, or SDG&E
View official program page →What it covers: Solar PV on multifamily affordable housing
Details: Up to $3.50 per AC watt for tenant load, $1.19 per AC watt for common area. The program’s annual budget (up to $100 million) was collected through June 2026; funding status beyond that date has not been published yet. Decision D.26-07-029 (July 2026) sets out the 2032 program closure process (true-up, fund allocation, and account closeouts) and updates multifamily property eligibility standards.
Eligibility: Deed-restricted multifamily affordable housing. Property eligibility standards were updated by Decision D.26-07-029 (July 2026).
View official program page →Frequently asked questions
Is the 30% federal solar tax credit still around?+
Can I stack multiple programs?+
What does “operational by 2026-12-31” mean for the property-tax exclusion?+
Why does battery storage matter so much under NEM 3.0?+
What happens after the property-tax exclusion sunsets in 2027?+



