Solar Rebates and Incentives

Installing solar on your residential or commercial property is an important financial decision. Fortunately, there are many state and federal incentives that can help bring down the overall cost of installing solar panels and battery storage to help you reap the financial benefits of this investment. If you have reviewed this page and would like to receive individualized support from solar experts through the City's Solar Santa Monica program, please fill out this form.

Federal Tax Credits

Federal investment tax credits are available for solar panels and battery storage installed on a home you own and use as a residence. As of August 2022, credits on solar have increased to 30% and have been extended through 2032. In addition, home battery storage and standalone storage are also eligible for the 30% tax credit.

No-cost Solar for Low-income Residents (through GRID Alternatives)

Are you a homeowner and CARE or FERA customer living in one of these communities in California? If so, you may qualify to receive a rooftop solar energy system – including installation – at no cost! To see if you qualify, visit GRID Alternatives, a community-based nonprofit and administrator of Disadvantaged Communities – Single Family Affordable Solar Homes (DAC-SASH).

Solar on Multifamily Affordable Housing (SOMAH)

Property owners of multi-family affordable housing developments apply to be on the waitlist to receive funding for solar energy systems. For more information, visit the SOMAH website.

Low-Income Weatherization Program (LIWP)

California’s Low-Income Weatherization Program (LIWP) provides low-income households with solar photovoltaic (PV) systems and energy efficiency upgrades at no cost to residents. LIWP is the only program of its kind in California that focuses exclusively on serving low-income households with solar PV and energy efficiency upgrades at no cost. The program reduces greenhouse gas emissions and household energy costs by saving energy and generating clean renewable power.

Self-Generation Incentive Program (SGIP)

California Self-Generation Incentive Program offers rebates for installing energy storage technology at both residential and non-residential facilities. These storage technologies include battery storage systems that can function during a power outage.

FAQ

Who can I contact for individualized support to go solar?

If you have reviewed the resources on this page and would like to speak with the Solar Santa Monica experts, please fill out this form.

What’s the right sized solar system for my property?

There are many variables that factor into the design of a solar system. These variables include electricity usage patterns, available space for the system, and your bill and energy offset goals. If you would like to speak with the Solar Santa Monica experts, please fill out this form.

What type of certification or licensing is required of a solar installer?

You must hire only CA state-licensed contractors with a valid license, which is either Photovoltaic (PV) Generation System: C-10 and C- 46; or B (General) license. Check contractor license numbers on the Contractors State License Board’s website or by calling 1-800-321-CSLB (2752).

You must also only hire contractors with a valid Santa Monica Business License.

Do I need a building permit to install solar on my property?

Yes. Make sure your contractor applies for a permit to install solar, which can be done online.

How does California’s new Net Energy Metering policy (NEM 3.0) impact solar in Santa Monica?

The new NEM 3.0 policy, called Net Billing, gives less value to solar generation that can’t be used on site and is sent back to the grid for a bill credit. That said, the portion of solar energy that is used onsite lowers your bill substantially. The high cost of utility kWh makes the solar investment a positive one. Strategies to limit the amount of generation sent back to the grid include changing times of energy use to coincide with solar generating hours and adding energy storage (batteries) to save solar kWh for use in the expensive peak periods.

Where can I recycle solar panels?

The City of Santa Monica, in partnership with the California Product Stewardship Council, piloted a first-in-the-state solar panel recycling project funded by CalRecycle. Here is a list of Universal Waste Haulers that treat solar PV modules.

What steps should I follow when considering going solar?

Review this step-by-step guide to going solar if you are considering adding solar or storage to your property.