Once your home is sealed and efficient (steps 1 & 2), solar becomes extremely attractive. You’ve already shrunk the load — which means you need fewer panels, a smaller system, and a lower upfront cost. A 6–8 kW system covers most or all of a California home’s electricity needs, and with the 30% federal tax credit, the effective cost drops significantly.
California’s NEM 3.0 (Net Billing Tariff), which took effect in April 2023, changed the economics. Grid export credits are lower than under NEM 2.0, which makes pairing solar with a battery more important than before. You want to use your solar power as you generate it, or store it — not export it.
Get your air sealing and heat pump water heater done before sizing your solar system. Every unit of load you eliminate reduces the number of panels you need. Right-sizing saves $2,000–$5,000 on a typical system.
EnergySage is an independent marketplace where vetted installers compete for your business. You post your project, get 3–7 quotes, and compare them side-by-side. The average EnergySage buyer saves $5,000–$10,000 vs. calling one installer directly. It’s free to use and there’s no obligation.
Enter your address and average monthly bill. They’ll match you with local installers within a day or two.
Under NEM 3.0, solar energy you export to the grid earns only ~$0.03–$0.05/kWh, while you pay $0.25–$0.45/kWh when you draw from the grid at night. That gap makes self-consumption (use-it-or-store-it) essential. A battery lets you shift your solar production to evening hours when rates are highest.
The CPUC’s official NEM 3.0 explainer is worth reading if you want the details.
The two most common choices are the Tesla Powerwall 3 (13.5 kWh, integrates tightly with solar) and the Enphase IQ Battery 5P (5 kWh modules, scales up). Both are excellent. The Powerwall 3 includes its own inverter, which simplifies installation. Enphase is modular — start with one unit and add more later.
A single battery stores roughly a day’s worth of essential usage. Two batteries covers most blackout scenarios.
The Residential Clean Energy Credit gives you 30% of the total installed cost of your solar system (panels + inverter + battery + installation) as a direct tax credit. On a $20,000 system, that’s $6,000 back. File IRS Form 5695 when you do your taxes for the year the system is installed. No income cap.
Solar leases and PPAs (power purchase agreements) let you go solar with no upfront cost, but you’ll miss out on the 30% tax credit, you won’t own the system, and it may complicate selling your house. If upfront cost is an issue, a solar loan is almost always better than a lease. Many installers offer 0% financing for 12–18 months.
Your installer handles interconnection paperwork, but knowing your utility’s process sets expectations. PG&E, SCE, and SDG&E each have their own approval timelines (typically 4–12 weeks from application to Permission to Operate). LADWP has its own solar program with different terms.
Panels + battery + installation. File IRS Form 5695. No cap, no income limit.
IRS Form 5695 info →CA eliminated direct solar rebates. The federal credit + NEM 3.0 + property tax exemption are your main benefits.
CA solar policy →California exempts solar installations from property tax reassessment through 2026.
CA BOE solar exemption →CA Solar for All and SELF program for income-qualified households. Check eligibility.
Low-income solar programs →| System size | Covers | Gross cost | After 30% credit | Payback |
|---|---|---|---|---|
| 5 kW | ~600 kWh/month | ~$15,000 | ~$10,500 | ~7 years |
| 7 kW | ~850 kWh/month | ~$20,000 | ~$14,000 | ~7 years |
| 10 kW + battery | Full home + backup | ~$35,000 | ~$24,500 | ~8–9 years |
Solar installer pricing varies by 30–50% for the same system. Never accept the first quote. EnergySage makes this easy — one form, multiple bids, transparent comparison.
EnergySage is the only marketplace where vetted local installers compete for your business. Post your project once, compare quotes side-by-side, and save an average of $5,000–$10,000 vs. calling installers directly. Free to use, no obligation.
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