California Solar Panel Law 2024: Essentials

December 20, 2023

An important step toward a sustainable future is the passage of the California Solar Panel Law of 2024. This statement highlights the state’s dedication to solar power, an expanding and advantageous renewable energy source. Solar currently provides over 20% of California’s electricity; however, in order for the state to achieve its climate and energy objectives, it must assume a more significant role.

Solar energy is rendered more accessible and affordable in California through the law’s substantial solar incentive provisions. Solar panel installation costs will be reduced by 26% in 2023 as a result of the California solar solar tax credit program. Solar capacity is projected to double within the next five years as a result of this incentive and the decreasing cost of solar panels in California, which have both contributed to an increase in installations.

solar panels in California

Source: Electrek

California solar energy offers numerous advantages. Solar panels provide householders with substantial energy bill savings in addition to diminishing their dependence on fossil fuels. Also, an additional $5,911 is added to the resale value for each kilowatt of solar panels installed.

Solar panels in California are also distinguished from those in other states by the law. The state explicitly requires that 50% of California’s energy come from renewable sources by 2025, an unprecedented act so far.

California strengthened its position in renewable energy with the enactment of the California Solar Law of 2023. The state of California solar is integrating solar energy into its energy portfolio through the use of robust solar programs, tax credits, and generous solar incentives.

How Much Solar Energy Can You Get in California?

Sunlight energy production is precious in California, which is often referred to as the “Golden State.” California is a frontrunner in the production of solar energy due to its 278 sunny days per year. More solar panels in California being installed as part of the California solar program is to be expected.

number of homes powered by solar energy in California

Source: Statista

Encouragements for solar energy beyond tax credits exist in California. Solar energy is becoming an increasingly appealing option for homeowners due to the presence of rebate programs and performance payments. Solar energy is not solely ecologically sustainable but also financially feasible when these incentives are considered.

The state of California is a leader in renewable energy, given the information presented. Solar energy generation is highly advantageous in the state due to its favorable climate and generous incentives.

How Much Do Solar Panels Cost in California

Despite requiring a significant financial investment, the adoption of solar energy can result in substantial long-term benefits. Numerous factors, including the configuration and capacity of the installation, influence the fluctuating average cost of California solar panels.

Excluding the federal solar tax credit, the mean expenditure on solar systems in California ranges between $15,000 and $25,000, excluding the federal solar tax credit. This roughly equates to a price per watt of $3 to $5. The exact cost, nevertheless, might fluctuate in accordance with your specific energy needs and the solar incentives that are currently available.

Commencing in 2023, solar incentives in California will play a crucial role in offsetting the initial investment costs. It is not unusual for the state to employ incentives; this trend will continue into 2023. One example of a program that can substantially decrease the cost of installation for homeowners is the California Solar Initiative.

3 $8,000
4 $10,400
5 $12,700
6 $15,000
7 $17,000
8 $20,000
9 $22,000
10 $23,500

In addition to price, it is critical to consider the quality of the panels and the reputation of the installer when comparing the best solar panels in California solar. Although the average price of solar panels in California solar may be higher than in other states, the considerable environmental advantages and sustained cost savings more than compensate for the additional cost.

California Solar Incentives and Tax Credits

California solar incentives and solar panel subsidies serve to augment its attractiveness to both businesses and residents. This section discusses five primary incentives that lend credibility to the notion that installing solar panels in California is a financially prudent choice.

Inflation Reduction Act (IRA)

Entities desiring to purchase California solar panels of the utmost quality may qualify for a favorable financial incentive as stipulated by the Inflation Reduction Act (IRA). By considering the impact of inflation, this measure reduces the cost of solar panels in California, thus increasing the feasibility of the initial investment.

Self-Generation Incentive Program (SGIP)

As an inducement to employ renewable energy sources like solar power, the Self-Generation Inducement Program (SGIP) offers rebates on energy storage system installations. By storing surplus heat generated during the day for subsequent utilization, these systems enhance the effectiveness and reliability of solar energy.

solar panels in California

Source: CalMatters

Solar Energy System Property Tax Exclusion

These California solar incentives provide an exemption from property tax liability for the surplus value of a solar energy system. Therefore, despite the increased value of your home, the installation of solar panels in California will not result in an increase in your property taxes.

Single-Family Affordable Solar Housing (SASH) Program

Targeting low-income households, the SASH program offers initial reimbursements to aid in the reduction of costs associated with the installation of solar panels in California. This initiative grants equitable access to solar energy for all residents of California solar, regardless of their income status.

California Solar Panel Rebate From Local Utilities

Several local municipalities offer rebates in support of solar panel installation. As a consequence of the substantial cost reductions that these rebates can facilitate, solar panels may appear to be an economically viable alternative for a considerable number of households.

When considering the installation of solar panels in California, these incentives, in conjunction with the new solar laws in California, render the present moment highly favorable. You shall simultaneously reduce your carbon footprint and realize cost savings. There are numerous providers of solar energy in California who are anxious to assist you with the transition. For convenience, below is a table describing the main stimuli and their meanings:

Incentive Value
Inflation Reduction Act (IRA) Qualified homeowners with home solar could be eligible for a tax credit of up to 30% against the cost of the system.
Self-Generation Incentive Program (SGIP) Rebate for buying and installing a solar battery along with a rooftop panel system. (Varies by utility and battery storage capacity)
Solar Energy System Property Tax Exclusion Property tax exclusion on the added home value from the rooftop solar system.
Single-Family Affordable Solar Housing (SASH) Program Eligible low-income homeowners who get their electricity from PGE, SCE, or SDGE could qualify for cash incentives for every kilowatt (kW) of solar power installed.
Local Utility Company Rebates Cash incentives for installing solar panels in California. (Varies by utility)

California Solar Panel Law From April 15, 2023

California, a state renowned for its forward-thinking energy policies, made significant advancements in entering the California Solar Panel Law on April 15, 2023. This bill represents a significant advancement for solar energy in California. All newly constructed residential structures in California are obligated to have solar panels installed as a means to reduce carbon emissions and promote renewable energy. Energy credits are awarded to homeowners at a rate of 75% less than their prior payments.

solar panel installation in California

Source: Los Angeles Times

In addition to providing incentives for the use of solar energy within the state, the act establishes the solar program in California. Providing these incentives to residents should facilitate the acquisition and purchase of solar energy. The California solar energy tax credit, a substantial financial incentive incorporated in the scheme, effectively diminishes the expenses.

In conjunction with the tax credit that will be extended to residential properties until the end of 2023, solar energy ought to acquire an even greater allure. A significant piece of legislation, the California Solar Panel Law of 2023, promotes the use of solar energy and provides substantial solar subsidies in California. California will be a leader in renewable energy as a result of this monumental step toward a greener future.

What to Should Consider When Switching to Solar Energy in California?

  1. California incentives: the substantial incentives offered by the state of California can serve as a partial offset for the considerable expenses associated with solar installation. The California Solar Tax Credit 2024 will provide households with the ability to deduct a proportion of their solar-related expenditures from their taxes, thus establishing this alternative as economically advantageous.
  2. Experienced solar panel installer: variations exist in the degree of expertise demonstrated by solar firms. By conducting research on the preeminent California solar companies, one can guarantee the provision of exceptional products and services. It is advisable to consider companies that have established reliable reputations and positive customer evaluations.
  3. Cost-effectiveness: the cost-effectiveness of solar panels is an aspect that holds equivalent significance in California. Enhanced power output indicates increased long-term cost savings due to implementing high-efficiency panels.
  4. Energy consumption assessment: compare the energy utilization of your residence. By augmenting one’s solar energy consumption, substantial financial savings can be attained.
  5. Prospective incentives: further reductions in the cost of solar energy may be possible with the implementation of subsequent incentive programs, such as the California Solar Incentives 2023.


The California Solar Panel Law of 2024 marks a significant stride toward a sustainable future. The law’s provisions, including substantial solar incentives and tax credits, make solar power more accessible and affordable to Californians. This legislation, paired with the state’s favorable climate, is projected to double solar capacity in the next five years, contributing to the state’s climate and energy goals. Additionally, the solar panel mandate for new constructions is a groundbreaking move in the U.S., further solidifying California’s commitment to renewable energy.

Beyond environmental benefits, solar panels also offer financial gains, including energy bill savings and increased home resale value. With the average cost of solar panels becoming more feasible due to incentives and declining installation costs, solar energy is not only environmentally sustainable but also financially viable. Therefore, the California Solar Panel Law of 2024 is a crucial step in promoting renewable energy and leading the nation toward a greener future.

Andy Worford
Andy Worford

Andy is a Founder, Chief Content Officer, regular contributor, and idea generator behind Solar Power Systems. He is well-versed in various aspects of solar energy, including photovoltaic systems, solar policy trends, and green technology innovations.

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