California Solar Incentives in 2026: What Changed and What Riverside Homeowners Can Still Get

If you've been researching solar for your Riverside, Perris, or Inland Empire home, you may have heard that the federal solar tax credit is gone. That's true for most homeowners as of January 1, 2026, so it's worth understanding exactly what changed and what incentives are still on the table.

What changed with the federal tax credit

The 30% Residential Clean Energy Credit (Section 25D) was repealed under the One Big Beautiful Bill Act for any home solar system placed in service after December 31, 2025. If your system was installed and running before that date, your credit is unaffected and unused amounts still carry forward on your taxes. New residential purchases in 2026 no longer qualify for that federal credit.

There is one federal option still standing: if you go solar through a lease or power purchase agreement, where a third party owns the panels, that company can still claim a commercial version of the credit through the end of 2027. It's worth asking any installer you're comparing whether they offer that structure.

What's still available in California

Property tax exclusion: adding solar does not trigger a property tax reassessment in California, so your panels won't raise your property taxes.

Local battery storage rebates: depending on your utility and eligibility, rebates for a home battery can range from roughly $3,000 to $13,000. These programs are separate from the expired federal credit and are still active for qualifying homeowners in our service area.

SGIP battery incentives: California's Self-Generation Incentive Program has mostly closed its general residential battery tier, but the income-qualified tier is still open for eligible households.

What this means if you're considering solar now

The math on solar has changed, but it hasn't disappeared. Electricity rates in Southern California continue to climb, and pairing solar with battery storage still meaningfully cuts monthly bills and protects against outages, especially with local battery rebates still on the table. The right move depends on your roof, your utility, and your household's eligibility for the remaining programs, which is exactly the kind of thing worth reviewing with a local, licensed installer before you sign anything.

Stellar Energy LLC is a licensed electrical contractor serving Riverside, Perris, and the greater Inland Empire. If you'd like a straight answer on what incentives you still qualify for, contact us for a free assessment.