California has the most installed residential solar in the country — and also the most complicated policy landscape. The 2023 switch to NEM 3.0 (the Net Billing Tariff) changed the math significantly. Here's what you actually need to know before signing anything.

Bottom line upfront: Solar still makes financial sense in California, but only if you pair it with battery storage. Without a battery, your payback period has stretched to 12+ years under NEM 3.0. With storage, you can get back to 7-9 years and cut your bill to near-zero.

What Changed With NEM 3.0

In April 2023, the California Public Utilities Commission replaced the old net metering rules with the Net Billing Tariff — commonly called NEM 3.0. The key change: excess electricity you export to the grid is now valued at avoided cost, not retail rate.

What that means in dollars: under NEM 2.0, you got roughly $0.30/kWh credit for excess power. Under NEM 3.0, that credit dropped to roughly $0.05-$0.08/kWh depending on the hour. That's a 75-80% reduction in export value.

If your system was interconnected before April 15, 2023, you're grandfathered on NEM 2.0 for 20 years. If you're installing now, you're on the new rules.

The practical implication: A solar-only system without battery storage now exports its best production hours at rock-bottom rates. A battery lets you store that midday power, then use it during evening peak hours (when PG&E, SCE, and SDG&E charge $0.40-$0.55/kWh). You're effectively arbitraging your own power instead of selling it cheap and buying it back expensive.

California Solar Incentives in 2026

Federal Investment Tax Credit (ITC): EXPIRED

The Section 25D residential ITC expired for homeowner-purchased systems on December 31, 2025. There is no federal income tax credit for new solar purchases in California in 2026. Lease/PPA companies may still qualify for the commercial Section 48E credit (construction must begin by July 4, 2026), which can be passed through as lower rates — but homeowners who purchase systems directly receive no federal credit.

Self-Generation Incentive Program (SGIP): Variable

California's SGIP provides upfront rebates for battery storage systems. The program prioritizes high-fire-threat districts and low-income households, where rebates can reach $1,000/kWh of storage capacity. Standard residential rebates are lower but still meaningful. Check current incentive blocks at cpuc.ca.gov — they deplete as demand increases.

No State Solar Tax Credit

California does not currently offer a state income tax credit specifically for solar. The state's incentive focus has shifted to battery storage through SGIP.

Property Tax Exemption

Active Solar Energy System improvements are excluded from property tax reassessment in California under Revenue and Taxation Code 73. Installing a $25,000 solar system will not increase your property tax bill.

Disadvantaged Community Programs

GRID Alternatives and the DACS Solar on Multifamily Affordable Housing program offer subsidized or free solar for qualifying low-income households. If your household income is at or below 80% of area median income, check these programs before going the standard route.

What Does Solar Actually Cost in California?

A typical California home uses 700-900 kWh/month. To offset that, you'll need roughly a 6-9 kW system.

| System Size | Pre-Incentive Cost | After 30% ITC |

|---|---|---|

| 6 kW | $18,000–$21,000 | $12,600–$14,700 |

| 8 kW | $24,000–$28,000 | $16,800–$19,600 |

| 10 kW | $30,000–$35,000 | $21,000–$24,500 |

Adding a Tesla Powerwall 3 (13.5 kWh) typically adds $9,000-$12,000 installed, of which 30% is also ITC-eligible. A single Powerwall is sufficient for most homes; high-usage homes may want two.

Simple payback with battery (NEM 3.0): 7-9 years for most California homes, assuming current utility rates.

Get your personalized estimate using EnergySage — it's the easiest way to compare quotes from pre-screened installers without the pressure of a door-to-door pitch.

Affiliate Disclosure: This article may contain affiliate links. If you make a purchase through these links, we may earn a small commission at no extra cost to you. We only recommend products we genuinely believe in. This helps support our work and allows us to continue providing free content.

Action Steps for California Homeowners

Pull your last 12 months of utility bills (kWh consumed, not just dollar amount)
Get 3+ quotes through a comparison platform like EnergySage
Ask every installer to model your bill with and without battery storage under NEM 3.0
Check your SGIP eligibility, especially if you're in a high-fire-threat district
Verify any installer's CSLB license before signing

Last updated: 2026-06-10

Ready to see real quotes from California installers? Enter your zip code below and we'll match you with pre-screened companies in your area. No pressure, no spam — just numbers.

Get My California Solar Quotes →

```

Article 2 of 5

```mdx

title: "Texas Solar Guide 2026: Grid Independence, Tax Exemptions, and Real Costs"

description: "Texas solar incentives, utility net metering policies, property tax exemptions, and honest cost benchmarks for Lone Star State homeowners in 2026."

date: "2026-06-10"

author: "SolarSimple Team"

readTime: "7 min read"

category: "State Solar Guides"

tags: ["texas solar", "texas solar incentives", "solar tax exemption", "ERCOT solar", "texas net metering"]

featuredImage: "/images/articles/texas-solar-guide-2026.jpg"

Texas gets more sunlight than Germany — which leads global solar adoption — and electricity rates have climbed sharply since the 2021 winter storm. The combination makes solar a genuinely compelling option for most Texas homeowners. Here's the straight story on costs, incentives, and what the lack of state-mandated net metering actually means for your bill.

Bottom line upfront: Texas has no state solar tax credit, but a 100% property tax exemption on added home value plus the 30% federal ITC can offset 30-40% of your system cost. The bigger opportunity is grid independence — pairing solar with battery storage protects you from ERCOT price spikes and outages.

Texas Solar Incentives: What's Real, What's Missing

Federal Investment Tax Credit (ITC): 30%

As in every state, the 30% federal ITC is the largest single incentive. On a $21,000 system, that's a $6,300 reduction in your federal tax bill. Note: this is a credit (dollar-for-dollar tax reduction), not a deduction. If your tax liability is less than the credit, the remainder carries forward.

Property Tax Exemption: 100%

This is Texas's most significant solar incentive and it's automatic. Under Texas Tax Code Section 11.27, the added value a solar system brings to your home is fully exempt from property tax assessment. A system that adds $20,000 to your home's market value will not raise your property tax bill by a single dollar. At Texas's average effective property tax rate of around 1.7%, that's $340/year in perpetual savings — $6,800 over a 20-year system life.

Sales Tax: Exempt

Solar energy devices and installation are exempt from Texas sales tax (6.25% state + local). On a $20,000 system, that's roughly $1,250-$1,500 you don't pay.

Utility Rebate Programs: Check Your Provider

Texas deregulated its electricity market, so incentives vary significantly by utility:

Austin Energy: Has historically offered solar rebates up to $2,500 for qualifying customers. Check current availability at austinenergy.com — funding is limited and programs change.
CPS Energy (San Antonio): Offers rebate programs for solar and battery storage. Current incentive levels at cpsenergy.com.
Oncor / other T&D utilities: Some offer limited programs. Retail electric providers in deregulated areas don't directly control incentives.

If you're in a co-op or municipal utility territory, call and ask directly — some have programs that aren't well-advertised.

Net Metering in Texas: The Honest Answer

Texas does not have a state-mandated net metering law. What you receive for excess solar depends entirely on your utility and retail electric provider.

In deregulated areas (most of the state): Your retail electric provider sets the buyback rate for excess generation. Some offer retail-rate buyback. Others offer avoided cost (much lower). A few offer no credit at all. When comparing solar quotes, ask installers specifically what export rate your REP offers — this significantly affects payback calculations.

Austin Energy and CPS Energy (vertically integrated utilities) do offer formal net metering programs with defined export credits. Austin Energy's Value of Solar rate has been meaningful.

The battery storage argument: Given the uncertainty of export credits and the very real risk of ERCOT grid failures (which have occurred in winter and summer events), battery storage makes more practical sense in Texas than almost any other state. A 13.5 kWh battery plus solar gives you 12-24 hours of basic home operation during an outage — that's real value independent of any policy calculation.

What Solar Costs in Texas

Texas is one of the most competitive solar markets in the country. High installer density and strong demand have driven prices below the national average.

| System Size | Pre-Incentive Cost | After 30% ITC |

|---|---|---|

| 6 kW | $15,000–$19,500 | $10,500–$13,650 |

| 8 kW | $20,000–$26,000 | $14,000–$18,200 |

| 10 kW | $25,000–$32,500 | $17,500–$22,750 |

Texas homes average 1,200-1,400 kWh/month — significantly higher than the national average due to heavy air conditioning loads. Most Texas homes need an 8-12 kW system to achieve meaningful bill offset.

Peak sun hours: Most of Texas gets 4.5-6.5 peak sun hours daily. Dallas, San Antonio, and El Paso are in the top tier nationally for solar production.

Compare quotes from vetted installers at EnergySage — they cover major Texas metros and let you compare apples-to-apples without the sales pressure.

Action Steps for Texas Homeowners

Check if your utility/REP offers a net metering or solar buyback program and at what rate
Pull 12 months of kWh consumption data
Get 3+ quotes — Texas's competitive market means prices vary significantly
Ask for quotes with and without battery storage
Verify installer licensing with TDLR before signing

Last updated: 2026-06-10

Ready to see what solar would cost for your Texas home?

Get My Texas Solar Quotes →

```

Article 3 of 5

```mdx

title: "Florida Solar Guide 2026: Sunshine State Savings After Net Metering Changes"

description: "Florida solar costs, HB 741 net metering transition, sales and property tax exemptions, and which utilities offer the best solar economics in 2026."

date: "2026-06-10"

author: "SolarSimple Team"

readTime: "7 min read"

category: "State Solar Guides"

tags: ["florida solar", "florida net metering", "HB 741", "florida solar incentives", "FPL solar"]

featuredImage: "/images/articles/florida-solar-guide-2026.jpg"

Florida is one of the sunniest states in the country and has among the fastest-rising residential electricity rates. It should be a solar paradise. The reality is more nuanced — a 2022 legislative change reshaped net metering, and understanding what that means for your specific utility determines whether your payback math works.

Bottom line upfront: Florida's solar incentives are solid — a sales tax exemption, property tax exemption, and the 30% federal ITC — but the 2022 net metering reform means export compensation will decline over the next two decades. The best Florida solar value is in FPL territory with high consumption, south-facing roofs, and ideally a battery to maximize self-consumption.

Florida's Net Metering: What HB 741 Actually Changed

Florida House Bill 741, signed in March 2022, restructured how the state handles net metering for new solar customers. The old system gave solar owners full retail-rate credit for every kWh they exported. The new law created a 20-year transition:

What it means in practice:

Customers who interconnected before the rule change were grandfathered under the old retail-rate system
New customers receive credits during a transition period, but the export rate will step down incrementally toward avoided cost (substantially lower than retail) over 20 years
The exact rate depends on your utility and the year your system interconnects

FPL (Florida Power & Light): Largest utility in Florida, serving much of the peninsula. Export credits are currently meaningful but will decline on schedule. FPL's rates are relatively high (~$0.13-$0.16/kWh in 2026), which means self-consumed solar still saves you at full retail even as export rates compress.

Duke Energy Florida / TECO / other utilities: Similar trajectory. Check your utility's current interconnection tariff for the specific export credit schedule.

The self-consumption strategy: As export rates decline, the playbook mirrors California — maximize the solar power you consume directly during daylight hours, and use battery storage to shift evening usage off the grid. A battery isn't as urgent in Florida as in California today, but its value increases year over year as export rates fall.

Florida Solar Incentives

Federal Investment Tax Credit (ITC): 30%

The federal ITC applies to both the solar system and any battery storage installed simultaneously or added later. Florida residents receive the full 30% credit against federal tax liability.

Sales Tax Exemption: 6%

Florida exempts solar energy systems from the state's 6% sales tax. On a $22,000 install, that's $1,320 you don't pay at closing.

Property Tax Exemption: 100%

Florida exempts the full added value of a solar installation from property tax assessment under Florida Statute 193.624. At Florida's median effective property tax rate (~0.86%), this saves roughly $170-$250/year on a typical system — not enormous, but it compounds over 25 years.

No State Income Tax

Florida has no state income tax, so there's no state solar tax credit mechanism to offer. The federal ITC is your primary tax-based incentive.

What Solar Costs in Florida

Florida is a high-competition solar market, which generally keeps installer pricing competitive. Labor costs are moderate. A typical Florida home uses 1,000-1,200 kWh/month.

| System Size | Pre-Incentive Cost | After 30% ITC |

|---|---|---|

| 7 kW | $17,500–$21,000 | $12,250–$14,700 |

| 9 kW | $22,500–$27,000 | $15,750–$18,900 |

| 12 kW | $30,000–$36,000 | $21,000–$25,200 |

Roof considerations: Florida has one of the highest re-roofing rates in the country due to hurricane-related damage and insurance requirements. If your roof is more than 10-12 years old, seriously consider bundling a roof replacement with your solar install — you can finance both together and only pay the ITC-eligible portion on the solar work. Many installers offer this.

Compare current Florida pricing at EnergySage.

Action Steps for Florida Homeowners

Pull your last 12 months of FPL/Duke/TECO bills (kWh data, not just dollars)
Ask your utility for the current interconnection tariff — specifically the export credit rate schedule under HB 741
Check your roof age and condition before proceeding
Get 3+ quotes; always verify DBPR contractor license
Ask specifically about hurricane resilience scenarios if outage protection matters to you

Last updated: 2026-06-10

Want to see Florida-specific quotes without the door-to-door pressure?

Get My Florida Solar Quotes →

```

Article 4 of 5

```mdx

title: "New York Solar Guide 2026: NY-Sun Incentives, State Tax Credit, and Real Payback Times"

description: "New York solar costs, NY-Sun program incentives, 25% state tax credit, net metering under VDER, and top installers for NY homeowners in 2026."

date: "2026-06-10"

author: "SolarSimple Team"

readTime: "8 min read"

category: "State Solar Guides"

tags: ["new york solar", "NY-Sun", "new york solar incentives", "VDER net metering", "new york solar tax credit"]

featuredImage: "/images/articles/new-york-solar-guide-2026.jpg"

New York has some of the highest electricity rates in the continental US — Con Edison customers regularly pay $0.25-$0.35/kWh — and one of the most generous state-level solar incentive stacks in the country. The combination creates a compelling solar ROI even though the state gets fewer sun hours than the Sun Belt. Here's what every New York homeowner needs to know.

Bottom line upfront: Between the 30% federal ITC, New York's 25% state tax credit (up to $5,000), and active NY-Sun per-watt incentives, you can reduce effective system cost by 50% or more. High Con Edison and National Grid rates mean the savings on every self-consumed kWh are among the highest in the nation.

New York Solar Incentives: The Full Stack

Federal Investment Tax Credit (ITC): 30%

Standard nationwide. Covers solar panels, inverters, battery storage, and installation labor.

New York State Solar Energy System Equipment Credit: 25% (up to $5,000)

This is the most underutilized New York solar incentive. The state income tax credit equals 25% of your installed solar system cost, capped at $5,000. On a $20,000 system, that's the full $5,000 credit. Combined with the 30% federal ITC ($6,000), you've recovered $11,000 — 55% of a $20,000 system — through tax credits alone, before any per-watt incentive.

NY-Sun Incentive Program

Administered by NYSERDA, NY-Sun provides an upfront per-watt incentive paid directly to your installer (and passed through to you as a lower price). The amount varies by utility territory and incentive block — as blocks fill, the per-watt amount steps down.

Approximate ranges as of mid-2026 (verify current blocks at nyserda.ny.gov):

Con Edison territory: $0.10-$0.20/watt
National Grid / NYSEG / Central Hudson (Upstate): higher per-watt amounts, often $0.20-$0.40/watt, as upstate markets are less saturated

On an 8 kW system, that's $800-$3,200 off the top before tax credits. Not transformative on its own, but it stacks.

Affordable Solar Programs

NYSERDA's EmPower+ Solar program and the Affordable Solar program offer subsidized or no-cost solar installations for income-qualifying New Yorkers (at or below 80% of area median income). If you might qualify, check before pursuing the standard market route.

Sales Tax Exemption

New York exempts residential solar energy systems from state and local sales tax — worth 8-8.875% in NYC/metro areas.

Property Tax Exemption

Under New York Real Property Tax Law Section 487, solar installations are exempt from property tax assessment for 15 years. In high-tax Westchester or Nassau County, this exemption alone can be worth $500-$1,000/year.

Net Metering in New York: VDER Explained

New York's net metering system has been evolving toward the Value of Distributed Energy Resources (VDER) framework, also called the "Value Stack." Traditional net metering (retail-rate credit) has been replaced in most territories by a more complex valuation.

What VDER means for you:

Your exported solar power earns credits based on multiple components:

Energy value (wholesale market price)
Capacity value (avoided peak capacity cost)
Environmental value (REC-related)
Demand reduction value (distribution system benefit)
Locational System Relief value (geographic congestion relief)

In practice, the blended VDER credit is often near or slightly below retail rate in many territories — which is meaningfully better than the avoided-cost rates California adopted under NEM 3.0. For most New York homeowners, VDER produces reasonable export compensation, though it varies by location and season.

Ask your installer to model VDER specifically for your service territory. Upstate vs. downstate VDER values differ significantly.

What Solar Costs in New York

New York has higher labor costs than most states, and roofing/structural complexity in older Northeast housing stock adds to installation costs.

| System Size | Pre-Incentive Cost | After 30% ITC + $5K State Credit |

|---|---|---|

| 6 kW | $18,000–$22,800 | $7,600–$10,960 |

| 8 kW | $24,000–$30,400 | $10,800–$16,280 |

| 10 kW | $30,000–$38,000 | $13,500–$21,600 |

State credit capped at $5,000. Effective net cost calculation above includes 30% ITC + $5K state credit only. NY-Sun per-watt incentive would reduce this further.

Note on New York City: NYC has unique structural and permitting complexity that adds cost. Con Edison's high rates ($0.28-$0.35/kWh) make the economics compelling, but get multiple quotes — NYC install prices vary widely.

Get current New York quotes from pre-screened installers at EnergySage.

Action Steps for New York Homeowners

Verify you qualify for the NY State 25% tax credit (most homeowners do — just need state tax liability)
Check current NY-Sun incentive blocks for your utility territory at nyserda.ny.gov
Pull 12 months of kWh usage from your Con Ed / National Grid / NYSEG account
If you rent or have a shaded roof, look at community solar first
Verify installer holds a valid NY Electrical Contractor license before signing

Last updated: 2026-06-10

See what the New York incentive stack means for your specific home.

Get My New York Solar Quotes →

```

Article 5 of 5

```mdx

title: "Arizona Solar Guide 2026: 300 Days of Sun, Smart Incentives, and the APS Caveat"

description: "Arizona solar costs, state tax credit, property tax exemptions, APS and SRP net metering policies, and honest payback timelines for AZ homeowners in 2026."

date: "2026-06-10"

author: "SolarSimple Team"

readTime: "7 min read"

category: "State Solar Guides"

tags: ["arizona solar", "arizona solar incentives", "APS solar", "SRP solar", "arizona net metering"]

featuredImage: "/images/articles/arizona-solar-guide-2026.jpg"

Arizona is objectively one of the best places in the country to install solar. Phoenix averages more peak sun hours than almost any major US city. Electricity costs enough to make solar meaningful, and the incentive stack — while modest compared to New York — is clean and stackable. The catch: your utility matters enormously, and SRP (Salt River Project) territory works very differently than APS territory.

Bottom line upfront: Arizona solar works well in APS territory with the 30% federal ITC, 25% state credit, and property tax exemption stacking together. In SRP territory, the economics are more complicated due to demand charges — run the numbers carefully before proceeding.

Arizona Solar Incentives

Federal Investment Tax Credit (ITC): 30%

The standard federal credit. Applies to panels, inverters, racking, and battery storage. Carried forward if your tax liability doesn't cover it in year one.

Arizona Residential Solar Energy Credit: 25% (up to $1,000)

Arizona offers a state income tax credit equal to 25% of the installed cost of a solar energy device, capped at $1,000. It's modest in absolute terms — a $20,000 system earns you $1,000, not $5,000. But it's real money, it's uncapped on carryforward (you can carry it forward up to 5 years), and it stacks cleanly with the federal ITC.

Property Tax Exemption: 100%

Arizona fully exempts the added value of a solar installation from property tax under ARS 42-11054. At Maricopa County's effective property tax rate (~0.55-0.65%), this is worth $110-$130/year per $20,000 of added value — perpetual savings over the system's life.

Sales Tax: Variable

Arizona's state sales tax (Transaction Privilege Tax) treatment of solar varies by city and county. Some municipalities exempt solar equipment; others don't. Confirm with your installer what TPT applies in your jurisdiction.

No Utility Rebate Programs (Currently)

APS and SRP do not currently offer significant rebate programs for residential solar. This differs from some other states — Arizona's incentives are primarily tax-based.

Net Metering: APS vs. SRP — A Critical Distinction

APS (Arizona Public Service): APS customers can export excess solar to the grid and receive credits. The export rate is below retail — APS uses a Resource Comparison Proxy rate that's typically 60-75% of the retail rate depending on time of day. Still meaningful. Combined with direct self-consumption during Arizona's abundant daylight hours, APS solar economics are solid.

APS uses Time-of-Use rates for solar customers. Your imported electricity costs more during peak hours (typically 4-9 PM), and your exported solar during midday earns the export credit rate. This incentivizes either self-consumption or battery storage to shift energy from midday production to evening use.

SRP (Salt River Project): This is where Arizona solar requires a careful look. SRP covers the southeast Phoenix metro (Mesa, Tempe, Chandler, Gilbert, Scottsdale east). Their E-27 rate plan for solar customers includes a monthly demand charge — you pay based on your highest 30-minute peak consumption during the month, regardless of how much solar you generate.

What this means in practice: a large central AC unit cycling on at 7 PM (after your solar has stopped producing) creates a demand charge that can significantly offset your solar bill savings. Many SRP solar customers find their bill reductions are smaller than APS customers with equivalent systems.

In SRP territory, battery storage is more important, not less — a battery lets you run the AC from stored solar through the evening peak, flattening the demand spike.

If you're in SRP territory, ask installers to model your bill under the E-27 rate specifically with real demand charge calculations. The standard "here's how much electricity you'll generate" pitch misses the demand charge story entirely.

What Solar Costs in Arizona

Arizona's competitive installer market and low labor costs make it one of the most affordable states for solar installation.

| System Size | Pre-Incentive Cost | After 30% ITC + $1K State Credit |

|---|---|---|

| 6 kW | $13,500–$18,000 | $8,450–$11,600 |

| 8 kW | $18,000–$24,000 | $11,600–$15,800 |

| 10 kW | $22,500–$30,000 | $14,750–$20,000 |

Arizona homes use 1,100-1,400 kWh/month on average — driven by summer AC loads. A properly sized system (8-12 kW) can offset 80-100% of annual consumption. Note that Arizona's production is extremely seasonal — you'll overproduce heavily in spring and fall, moderately in winter, and your AC load will spike in June-August when you'll need every panel working.

Get current Arizona quotes and compare installers at EnergySage.

Action Steps for Arizona Homeowners

Identify whether you're in APS or SRP territory — this changes everything
Pull 12 months of kWh usage AND your peak demand data if you're in SRP territory
Get 3+ quotes; ask SRP-territory installers specifically to model demand charges
Ask about west-facing panel orientation for late-afternoon production in APS TOU pricing
Verify installer ROC license at azroc.gov before signing

Last updated: 2026-06-10

See Arizona-specific pricing for your home — with the demand charge math done right.

Get My Arizona Solar Quotes →

```