Solar & Batteries
California solar in 2026, the honest answer for your situation.
NEM 3.0 cut export credits 75%. The federal 30% tax credit expired December 31, 2025. Hidden dealer fees of 15–36% inflate financed loans. Most online advice comes from installer-funded sites that earn money when you buy. This page exists because that's broken.
If you're here because someone is trying to sell you a system, slow down. The economics of California residential solar changed in 2023 (NEM 3.0) and again December 31, 2025 (federal credit expired). A quote that "made sense" in 2024 doesn't necessarily make sense now. Most installer sales pitches still use the old numbers. Worse, your top three concerns — payback math under your specific utility, hidden financing fees, and what happens if the installer goes bankrupt — are the three things they're least incentivized to tell you the truth about. Read what's below first. Ask the questions in the green box. Then decide.
2026 Reality
The numbers that changed
Solar economics in California are not what they were in 2022. Anyone quoting you old payback periods is using stale math or lying.
−75%
NEM 3.0 cut export credits to roughly $0.05–$0.08/kWh vs $0.35–$0.55 retail
$0
Federal 25D credit (30% solar/battery) expired Dec 31, 2025
9–13 yr
Solar-only payback PG&E under NEM 3.0 (was 5–6 yr pre-2023)
6–7 yr
Solar + battery payback SDG&E (the fastest territory)
87%
Of CA solar quotes in 2025 now include a battery (was 10% pre-2023)
500K+
Customers orphaned by installer bankruptcies 2024–2026 (Sunnova, SunPower, Titan, Freedom Forever)
15–36%
Hidden dealer fees on financed solar loans (CFPB findings, MN AG settlements)
8–16 wk
SCE interconnection (PTO) wait, often longer with batteries
Use this before you sign anything
The 5 questions that separate an honest installer from a hustler
Ask each of these out loud. If the rep dodges, gets vague, or says "trust me, the numbers work out," walk away. Honest installers answer all five with specifics in under two minutes.
1
"What specific self-consumption percentage and exact NEM 3.0 export rate did you use to model my savings?" An honest answer cites a real percentage (often 40–75% with battery) and a real $/kWh by hour bucket. A dodge is "industry-standard assumptions" or "our calculator handles that."
2
"Does this financed price include a hidden dealer fee, and what is the pure cash price?" If the financed total is 15–36% higher than cash, you're paying a dealer fee that doesn't buy you anything. CFPB documented this; MN AG and others have sued lenders over it. Get the cash price in writing.
3
"What happens to my warranty if your company goes out of business?" Sunnova, SunPower, Titan, Freedom Forever, and others have collapsed in the last two years, leaving 500,000+ customers stranded. A solid answer names the underwriter and explicitly transfers labor warranty to a third party. "We've been in business 20 years" is not an answer.
4
"How will this affect my homeowner's insurance and my ability to sell the house?" California carriers are dropping policies. PPA/lease contracts have blocked or killed home sales (buyout costs $20K–$60K). A good answer covers insurance disclosure, lease assumption, and UCC-1 fixture filings on title. A bad answer is "that won't be an issue."
5
"Can I have 72 hours to review the contract with my own attorney or a trusted third party?" If the answer involves "limited time pricing," "expires tonight," or any same-day-signing pressure, the deal isn't designed to survive scrutiny. Honest contracts survive 72 hours. California also gives buyers 65+ a five-day rescission window by law.
Renters & small spaces
Plug-in / balcony solar
Plug-in solar is small (200–800W), self-installed, and works in apartments, condos, or as a supplement. It's the only realistic solar option for most California renters. The US is roughly five years behind Germany; the regulatory frame is being built right now.
Calculators
Tools to run your own numbers
No emails, no signups, no contractor leads. Everything calculated client-side.
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Curious whether efficiency first would save you more?
Air sealing + a heat pump water heater often beat solar on dollar-for-dollar return. The order matters.
See efficiency track →