California Solar Power at a Glance


Electricity costs


Renewable Portfolio Standards


Solar Carve Out


Net Metering




Performance Payments




State Tax Credits


Property Tax Exemption


Sales Tax Exemption



  • Lower range of electric prices
  • Renewable Portfolio Standards
  • Solar Power Performance Program
  • Incentives Offered
  • Net Metering Program
  • Interneconnection Policy
  • Property Tax Exemption


  • No Solar Carve Out Program
  • No State Tax Credits
  • No Sales Tax Exemption

Solar Power in California

California Solar Power


There is no doubt that California is well aware of the benefits that solar energy can bring to them. They are also a State that takes preservation of natural resources seriously. It has a lot of exquisite natural settings to protect. Californians also like to save money too, and have soon caught on that solar power is one very significant way of doing this. They take pride in assuming their responsibility for keeping the earth a green and safe environment. At the current time they place in the top ten in the nation for the highest electrical costs. They are paying 17 cents kwh.

Average Costs of going Solar

Californians can expect to pay $17,500 up front for a 5kW solar system. After they have taken advantage of rebates and incentives in the amount of $6,443, this is reduced to $11,057.

Savings for Solar Power California

Once the solar system is in place residents can enjoy a monthly savings of $100. off their electrical bill. The value of the home on average increases by about $23,868.

Payback Periods for California Solar Systems

To realize a full payback on this solar system it will take about nine years.

Return On Investment On Solar Electric System

A ROI is an important factor to consider when making any type of investment. For those in California who are switching to solar power they can expect a 13.4% return.

Incentives California Solar Power

Current California Legislative Environment For Solar

California is proud to hold the #4 spot in the Nation for their Renewable Portfolio Standards. They have set the mandate of being able to operate with 50% renewable energy by 2030. If the California utility companies do not meet these standards then they are going to be in for some hefty fines.

California does not have a Solar Carve Out program.

Many states fall short on their Interconnection regulations but that cannot be said of California. They have excellent regulations in place.

Incentives Available For California Solar

This state does have Solar Performance Payments program in place. It is rated at #30 in the Nation. The State does not have a FIT program, which is okay because that type of program is only beneficial to solar farms. The Solar Performance Payment program that is in place helps Californians realize net metering credits. It also should be remembered that some of the individual cities may offer separate incentives.

California Net Metering

California is proud of their Net Metering program. This is a program that ensures you get credited for the surplus energy that your California solar system is generating. In California residents get a 100% credit for their surplus.

Rebates / Tax Credits

While you will be able to take advantage of the Federal Solar Tax credits there are no State tax credits.

Another great advantage of being a California Solar power user is that this enhancement to your home allows it to be property tax exempt. However, you will still have to pay the sales tax.


Overall being a resident of California that wants to take advantage of what Solar Energy can offer and how the State is promoting it puts you in a better position compared to a lot of other States. This is probably the reason why so many Californians have opted into making their homes solar powered.