California is a leading state for solar panel installation and growth potential. The evidence is compelling – California has the nation’s most aggressive Renewable Portfolio Standards, first-of-its-kind solar legislation, and the world’s largest solar thermal plant and cash-back homeowner incentives. Factor in the sun-soaked days throughout much of the state and California has the recipe for success in solar energy. Get started on the path to clean energy with this comprehensive guide to going solar in California.
California’s Solar
Report Card
To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:
- Rebates, Tax Credits, and Tax Exemptions from Database of State Incentives for Renewables & Efficiency;
- Electricity Rates from the U.S. Energy Information Administration;
- Renewable Energy Policy from NC Clean Energy Technology Center;
- Interconnection Ease from Freeing The Grid;
- Photovoltaic Potential from the Energy Department
We determined a rank from 1 to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.
Incentives & Rebates, 40%
Electricity Rate, 15%
Renewable Energy Policy, 30%
Interconnection Ease, 5%
Photovoltaic Potential, 10%
The High Price of Electricity in California
Despite being the most populous state, California has one of the lowest per capita total energy consumption in the nation, according to the U.S. Energy Information Administration. Residential electricity costs, however, are among the highest in the country at $0.2072 per kWh, much higher than the nation’s average of $0.1317 per kWh. High electricity costs often prompt homeowners and businesses to turn to solar for financial savings and environmental benefits. About 27 percent of California’s electricity comes from natural gas, however, the state’s Renewable Portfolio Standard calls for 33 percent to come from renewable sources by 2020, and 60 percent by 2030.
Cost of Residential Electricity
Data from U.S. Energy Information Administration
*as of Q3 2015
Going Solar in California:
Library of Resources
Solar Panels in California: Policies & Incentives
California’s Renewable Portfolio Standard, which mandates 33 percent of the state’s electricity to come from renewable sources by 2020, is the foundation of California’s solar success. While this is a bold goal, the state is taking equally bold steps to ensure it’s met. In 2018, California passed legislation requiring all new homes to have solar by 2020 and includes incentives for homeowners to add batteries to collect and store solar energy. Owners of solar panels in California also are eligible for a property tax exemption, but not a sales tax exemption.
REBATES/INCENTIVES
The Solar Solutions program offered through Glendale Water and Power provides $0.25 per watt (for FY 2019-2020) for installed systems sized 30 KWdc or less that meet program guidelines. The incentive calculation cannot exceed 50 percent of the total cost of the system and will will not exceed $100,000 per customer per fiscal year.
The Sacramento Municipal Utility District provides an incentive of $300 per residential solar system. The incentive payment process is handled by the contractor. Homeowners installing their systems themselves should contact SMUD.
This program from the Western Riverside Council of Governments provides financing to homeowners in order to make energy improvements on their residences. The maximum amount that customers can receive is $5,000, which can be repaid through special assessments on property taxes.
SMUD’s solar program provides stipend amounts between $1,000 and $5,000 designed to offset the purchase and installation cost for the meter cabinet/equipment. SMUD will install a PV production meter at no cost to the customer or contractor.
The Property Assessed Clean Energy program allows commercial property owners to receive funding for PV system installation, which is paid back through a special assessment of property taxes.
Property owners have the option of financing energy efficiency, water efficiency, and renewable energy improvements through a voluntary assessment on their property tax bills.
POLICIES
Through this law, utility customers receive a credit at the retail rate for generating energy through their PV systems. In order to be eligible, customers must have systems with capacities between 1 kW and 1 MW.
The Solar Rights and Solar Shade Acts were enacted to ensure California citizens with solar systems certain protections against conflicting CC&Rs in planned communities. The Solar Rights Act includes protections for access to sunlight and solar system shading prevention, as well as limits the ability HOAs and local governments to prevent solar system installation. The Solar Shade Act prevents property owners from allowing their trees or shrubs to shade existing solar energy systems installed by their neighbors, provided that the solar system was installed prior to the planting of the trees or shrubs.
This legislation allows investor-owned utilities—Pacific Gas and Electric Company, Southern California Edison, and Pacific Gas and Electric Company—to create a public benefit fund designed to conduct research and development on renewable and efficient energy sources in the state. To that end, the law allows these utilities to charge electricity ratepayers a public goods charge.
Investor-owned utilities can charge residential and commercial customers to connect PV systems to the energy grid.
Under this program, sellers of production homes are required to offer solar energy systems to all potential homebuyers. However, sellers also have the option to offset this requirement by installing a new system elsewhere that would be the equivalent of the system that would have been installed in a new home.
The City of Lancaster mandates that PV systems be installed on all new homes.
None specifically for commerical
TAX CREDITS
None specifically for residential
None specifically for commercial
None
EXEMPTIONS
None
California businesses can earn property tax for 100 percent of system value, and 75 percent for dual-use equipment.
Agricultural businesses are also eligible for 100 percent sales tax incentives.
Solar Panel Installation Companies in California
As the largest solar market in the country, California employs more than 75,000 workers in the solar industry at more than 2,300 companies. The southern part of the state, known for its sunny weather, has about two-thirds more installation companies at work than California’s northern counties. Nearly 250 contractors are equipped to install solar panels in Los Angeles County alone. Here is a list of solar panel contractors that can help residential homeowners meet their solar needs:
Installs quality PV systems in residential and commercial buildings.
Where it operatesNorthcentral counties, including Nevada, Placer, Butte, Humboldt, Lake, Lassen, and Mendocino
Year of opening2007
Allen Construction provides energy efficiency and solar solutions for residential and commercial clients, including building performance assessments, passive solar design, energy efficiency upgrades, gray water systems, solar energy installations, and system commissioning. In addition to its Santa Barbara headquarters, the company maintains offices in Santa Ynez, Ventura, and Los Angeles.
Where it operatesSanta Barbara, CA
Year of opening1983
Designs and installs solar panels, including off-grid.
Where it operatesNorthern California counties
Year of opening2004
Experts in both solar and air conditioning in order to design total solutions, with standard and emergency repair. Also features three solar showrooms.
Where it operatesFresno, Bakersfield & Templeton
Year of opening1985
California Solar Electric is a family-run business dedicated to providing high-quality on- and off-grid customer service for residential and commercial clients using the latest solar electric and battery storage technologies. It is one of only a handful of Elite SunPower dealers in the world.
Where it operatesOjai, CA
Year of opening1986
Offers affordable solar leasing, servicing and installation in Central California.
Where it operatesCentral California counties
Year of opening2009
Originally a general contracting business, Coastal Solar began providing quality solar installation to residential and commercial clients in Ventura and Santa Barbara Counties in 2007. The company has completed over 500 installations in Ventura. Coastal Solar additionally offers solar panel repair and maintenance, energy upgrades, financing solutions and more.
Where it operatesVentura, CA
Year of opening1988
Offers free quotes that include shade analysis, savings projections, and solar system design before customers commit to using their services.
Where it operatesLos Angeles, Orange, Kings, San Francisco, Tulare, San Bernadino, Riverside, San Diego, San Mateo, Santa Clara, Napa, Contra Costa, Marin, Alameda, Solano and San Joaquin counties
Year of openingN/A
Where it operatesBeverly Hills, CA
Year of openingNA
Halsell Builders is a full-service design and build company offering new home and commercial construction, large remodels, and a number of energy upgrade services including solar, air sealing, heating and air conditioning upgrades, windows and insulation.
Where it operatesSanta Maria, CA
Year of opening2002
Specializes in quick installation, no money down financing and a lifetime guarantee for solar panel systems.
Where it operatesSouthern California and parts of northcentral counties
Year of opening2008
A full-service heating and air conditioning company, N.R.G additionally provides high-quality solar panel installation and repair. The company services the Los Angeles, Orange and Ventura County areas. Fully licensed, bonded and insured.
Where it operatesCanoga Park, CA
Year of opening1999
Designs and installs solar panel systems; also provides roofing services.
Where it operatesSan Diego and Southern California
Year of opening1990
Dedicated to giving back to the community and the planet, Simply Solar’s highly trained team provides design, installation, and monitoring for residential and commercial PV systems.
Where it operatesNorthern California
Year of opening2013
The Solar Energy Company provides full-service solar PV, hot water and heating for pools to residential and commercial customers in the Ventura, Santa Barbara and San Luis Obispo County areas. It has installed over 7,000 systems since the company’s founding in 1976.
Where it operatesCarpinteria, CA
Year of opening1976
Residential and commercial solar installation, along with free quotes and solar panel cleaning services.
Where it operatesSacramento, San Francisco Bay, and Stockton areas
Year of opening2008
One of southern California’s leading solar energy companies.
Where it operatesLos Angeles, Riverside, Orange, San Diego, and San Bernadino counties
Year of opening2013
Quick installation and opportunity for free quotes.
Where it operatesLos Angeles and surrounding communities
Year of openingN/A
SolarCraft offers solar electric, solar pool heating, and solar hot water for homes and businesses. The SolarCraft team will make sure to maximize financial incentives, giving you the most cost-effective PV system.
Where it operatesMarin, Sonoma, Napa
Year of opening1984
Residential and commercial installation, with referral rewards and $0 down financing.
Where it operatesParts of Los Angeles, Riverside, San Bernadino, San Diego, Ventura and Orange counties
Year of opening2008
Solarponic has installed over 5,000 systems since its founding in 1975. It is the only Amicus Solar co-op member/owner on the Central Coast. Serving residential and commercial clients throughout the Central California and North Santa Barbara County areas.
Where it operatesAtascadero, CA
Year of opening1975
Installations for homes and businesses, along with free quotes.
Where it operatesLos Angeles and Ventura counties
Year of opening2004
Headquartered in San Rafael, Sun First offers residential and commercial solar design and installation, as well as repair and maintenance services. Sun First also specializes in both off-grid and grid-tie battery storage.
Where it operatesNorthern California
Year of opening1984
Solar solutions for homes and agricultural businesses. Also provides a variety of solar products and cleaning and maintenance services.
Where it operatesSan Diego County
Year of opening1986
Sun Pacific Solar Electric is a family-owned solar energy design, installation, and maintenance company providing solar power solutions for residential, commercial and agricultural customers. It has installed a total of over 2 megawatts of solar energy systems throughout the Tri-County area.
Where it operatesSanta Barbara, CA
Year of opening2005
Cost-effective solar solutions for customers in the Bay Area.
Where it operatesContra Costa, Alameda and Solano counties
Year of opening1992
Additional Resources for California Solar
Find out about the government agency that oversees and regulates investor-owned electric and natural gas utilities in the state, including energy rates, licensing and the California Solar Initiative.
Meet the commissioners who oversee the state’s energy projects and find information on state energy programs.
Find answers to FAQ, learn about your solar rights, find a contractor and learn about buying and selling a solar home.
Search for legislation affecting solar and renewable energy, check the daily update for news and find out which legislator you need to contact.
Find out about energy efficiencies and renewable energy for your home as well as training and education in sustainable energy.
Explore state and federal incentives for solar energy in a database maintained by the N.C. Clean Energy Technology Center at N.C. State University.
Research official federal data on energy usage and potential for renewable energy resources for California.