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California Energy Incentives

Federal and state programs for solar, battery, EV, and efficiency upgrades.

Key Programs

State & local storage programs (demo)Program

Some regions offer storage incentives and resilience programs; confirm availability by utility territory.

Home electrification rebates (demo)Rebate

Rebate availability depends on income eligibility and local program funding.

Federal Incentives

Federal Solar Investment Tax Credit (ITC)
solar30%

Deduct 30% of the total cost of your solar energy system from your federal income taxes. Includes panels, inverters, racking, wiring, installation labor, and permitting.

Expires: 2032-12-31Official source โ†’
Federal Battery Storage Tax Credit
battery30%

Standalone battery storage systems of 3 kWh or larger qualify for the 30% federal tax credit, even without solar. Added by the Inflation Reduction Act.

Expires: 2032-12-31Official source โ†’
Federal Clean Vehicle Tax Credit
evUp to $7,500

Tax credit for purchasing a new qualifying electric vehicle. Amount depends on battery sourcing and manufacturing requirements.

Federal Heat Pump Tax Credit (25C)
heat-pumpUp to $2,000

30% credit on qualified heat pump costs, up to $2,000 per year. Can be claimed annually (not a one-time credit).

Federal Energy Efficiency Home Improvement Credit (25C)
weatherizationUp to $1,200/year

30% credit on insulation, windows, doors, and energy audits. Annual limit of $1,200 (separate from the $2,000 heat pump limit).

State Programs

CA Self-Generation Incentive Program (SGIP)
batteryUp to $1,000/kWh

California rebate for battery storage systems. Higher rebates available for low-income households and those in high fire-threat areas (equity and equity resiliency budgets).

CA Net Billing Tariff (NEM 3.0)
solarVaries (export credits)

California's current solar billing policy. Exports are credited at lower "avoided cost" rates that vary by time of day. Pairs well with battery storage for self-consumption.