Solar Incentives in San Diego
Explore federal, state, and local utility incentives available for solar installations in San Diego, California
Your Utility Company
San Diego Gas & Electric (SDG&E)
Average Rate: $0.38/kWh
NEM 3.0 - Net Billing Tariff. Highest rates in California, making solar highly attractive.
Federal Incentives
Federal Solar Investment Tax Credit (ITC) - EXPIRED
0%The 30% federal tax credit for customer-owned residential solar systems expired on December 31, 2025. Homeowners who purchased and installed systems by 12/31/2025 may still claim the credit on their 2025 tax return. For systems installed in 2026 and beyond, the residential ITC is no longer available for customer-owned systems.
Eligibility: EXPIRED as of January 1, 2026 for new customer-owned installations. Third-party owned systems (leases/PPAs) may still offer savings through commercial tax credits passed to customers.
Expires: December 31, 2025
Learn more →Solar Lease/PPA Savings (via Commercial ITC)
VariesWhile the residential solar tax credit expired 12/31/2025, third-party owned solar systems (leases and PPAs) can still benefit from commercial tax credits through 2027. These savings are typically passed to customers through lower lease payments or electricity rates.
Eligibility: Available for solar leases and Power Purchase Agreements (PPAs) where a third-party company owns the system and sells you the electricity.
Expires: December 31, 2027
Learn more →California State Incentives
California Property Tax Exemption for Solar
100%Solar energy systems are exempt from property tax assessment in California. The added home value from solar panels will not increase your property taxes.
Eligibility: All California homeowners who install solar energy systems
Learn more →Self-Generation Incentive Program (SGIP)
$200-$1,000/kWhCalifornia rebate program for battery energy storage systems. As of January 2026, general market budgets are CLOSED in most utility territories. Equity budgets ($850-$1,000/kWh) remain available for qualifying low-income households and those in high fire-threat districts, but are on waitlist.
Eligibility: General Market: CLOSED. Equity Budget: Available for households earning <80% area median income. Equity Resiliency Budget: Available for low-income households in high fire-threat areas or PSPS zones. Both equity programs currently on waitlist.
Learn more →Residential Solar and Storage Equity (RSSE)
Up to $4,000New program launched June 2025 with $280 million in funding for low-income customers statewide, including POU customers like LADWP and SMUD. Provides rebates for solar and battery storage installations.
Eligibility: Low-income households (<80% area median income) in all California utility territories including public utilities.
Learn more →Net Energy Metering 3.0 (NEM 3.0)
VariesNet billing tariff that credits solar customers for excess energy sent to the grid. Export rates vary by time of day and season, with higher rates during peak demand periods.
Eligibility: All new solar customers with PG&E, SCE, or SDG&E
Learn more →San Diego Gas & Electric Incentives
Contact San Diego Gas & Electric for available solar incentives in San Diego.
How to Apply for Incentives
- ✓ Work with a certified solar installer who can help with applications
- ✓ Apply for incentives before or immediately after installation
- ✓ Keep all receipts and documentation for your solar system
- ✓ Check eligibility requirements carefully before purchasing
- ✓ Some incentives are first-come, first-served with limited funding
Next Steps
- ✓ Review solar costs in San Diego
- ✓ Get quotes from local solar installers
- ✓ Calculate your potential savings with available incentives
- ✓ Verify incentive availability with your installer
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