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California Solar Energy (PV) Rebate Information:
The New California Solar Initiative Program


These incentives programs in California are for grid-connected systems and the PV panels and inverter equipment must be on the CEC eligible equipment list and be covered by a 10 year warranty.

Renewable Incentives for Non-Residential and Existing Homes


The California Solar Initiative (CSI) was started in 2006 to provide $3 billion in incentives for solar energy projects by 2016. To ensure that PV installations make use of the most efficient design and installation methods, the CSI is transitioning towards a performance-based and expected performance-based incentive program. The incentive levels, are reduced annually. The current rebate (as of June 2009) level for PG&E residential customers stands at $1.55 per watt and $1.90 per watt for customers of SCE and CCSE.

(See the "Statewide Trigger Point Tracker"  for latest rebate levels and megawatts remaining in the program.)

Customers who want to add photovoltaic to their existing residence or business, should go to the gosolarcalifornia website. Your local electric company is now administering the California Solar Initiative rebate system for the California Public Utilities Commission (CPUC).

To be eligible for the new California Solar Initiative rebate program, customers must:

  • Be customers of PG&E, Southern California Edison or San Diego Gas & Electric
  • Perform  or have an energy audit. 
  • Use a contractor with an A, B, or C-10 license, or a C-46 license for PV systems or install the system yourself for the same rebate.

Also, photovoltaic installations must now include a ten-year warranty on the complete system.

PG&E has also changed the time-of-use meter from an E7 to an E6. This change reduces the incentive and payback for TOU. There was lots of objections to this and currently 5000 E7 applications are being allowed.  (Note:  The latest update is that PG&E is allowing 5000 E7 meters on a first come first served basis.)


New Residential Construction
and Wind Energy



New residential construction (New Solar Homes Partnership) as well as wind energy customers, will continue to have their rebate programs administered by the California Energy Commission (CEC). See the CEC Guidebook for Emerging Renewables Program on the CEC website.


Other Renewable Energy Incentives



In addition to the state rebate program under the California Solar Initiative, there are also numerous incentives for renewable energy and energy efficiency managed by local municipalities within California.

Some of the programs, for instance Sonoma County's Energy Independence Program, provide loans for the installation of renewable energy equipment, while others, such as that of San Francisco, offer rebates upwards of $2,000 for the installation of photovoltaic systems. Marin County offers a $500 rebate for a PV system and $300 for a domestic hot water system under its Solar Rebate Program. Check to see what incentive programs are available in your area here .

Solar Hot Water

New California incentives for solar thermal projects including solar heating and cooling have recently been signed by the Governor and are awaiting implementation.

Property Tax Assessment: Many counties and cities in California will not reassess your house or business for improvements if you install a solar system.  This is very important and requires you to check with your city or county to make sure you will not be reassessed for solar improvements on your property tax assessment.

If you are not located in California, check the website at http://www.dsireusa.org to see what rebates may be available in your state.