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: Systems that qualify before 2027-01-01 keep the exclusion until the next change of ownership. This is the real, dated reason to plan a solar install in 2026.
Eligibility: Solar PV and solar-plus-storage; not stand-alone batteries; system active before 2027-01-01. Provided by the State of California.
Read California R&TC Section 73 Statute →What it covers: Rebate for home battery energy storage.
Details: Equity and resiliency incentives up to roughly $1,000 to $1,100 per kWh; standard residential lower and limited.
Eligibility: Varies by category; income-qualified and resiliency tiers are higher. Provided by CPUC and utilities.
View Official SGIP Program Page →What it covers: Solar and battery at little or no cost for income-qualified San Jose homeowners.
Details: No out-of-pocket through SGIP; includes 10 years of maintenance coverage. Active on a first-come, first-served basis with limited funding. Provided by San Jose Clean Energy / Haven (SGIP).
Eligibility: SJCE customer; own and occupy a single-family home under 3,500 sq ft in San Jose; household income at or below 80% Area Median Income.
Check SJCE Offer Details →What it covers: No-cost rooftop solar for low-income homeowners in disadvantaged communities.
Details: Incentive toward a no-cost solar system via GRID Alternatives. Provided by CPUC / GRID Alternatives.
Eligibility: CARE or FERA income eligible; home in a top-25% CalEnviroScreen disadvantaged community; PG&E, SCE, or SDG&E customer.
Visit CPUC DAC-SASH Portal →What it covers: Policy context, not a rebate: how new solar exports are credited.
Details: Exports are credited at the grid’s hourly value (lower midday, higher evening), which is why solar-plus-battery is now the common design. Mark as context, not a rebate. Provided by CPUC.
Eligibility: All new residential solar on PG&E, SCE, or SDG&E.
Read CPUC NEM 3.0 Documentation →What it covers: Tax credit for residential solar and battery storage.
Details: Not available for any property placed in service after 2025-12-31 (OBBBA). Pre-2026 installs may carry forward on taxes. Do not display as available for 2026. Provided by U.S. IRS.
Eligibility: Not applicable (expired for 2026).
View IRS Credit Archive →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?+
