California Energy Programs
Understanding your options and how you can be fully funded.
Solar and battery backup with no upfront cost for qualified California homes. Here's how the cost is actually covered.
How the funding actually works
Three sources stack together to cover the entire project, so qualified homes pay nothing up front.
- Federal funding covers 50–70% of the project.
- SGIP covers a further share — the amount varies by home.
- Grid Stability + Partners fund the remaining balance, including required upgrades like roofing and electrical-panel work.
$0 out of pocket. Your current utility payment is simply redirected into the program — at a much lower rate — in exchange for participation.
What homeowners get
Lower billsPay less than your current utility rate
Backup powerKeep the lights on during outages
Earn incomeGet paid for supporting the grid
Rate protectionShielded from rising utility prices
Clean energyPower your home from the sun
Modern homeA smarter, more resilient property
Choose a program to see exactly how it works.
Virtual Power Plant
Your home becomes part of California's power network
Your battery joins a network of thousands of connected home batteries that work together to support the grid. During high demand or grid emergencies, your battery shares a small portion of its stored energy to help keep the lights on across your region — and you get paid for it. Your home's backup is always reserved first.
How it works
- Fully funded solar + battery connects to a grid network
- On high-demand days, utilities signal batteries to dispatch power
- Your battery shares a small portion of its charge
- You're paid for every kilowatt-hour you contribute
- Backup power for your home is always reserved first
What you get
- Annual incentive payments from your utility
- Earnings for every grid event you join
- Full backup power during actual outages at your home
- Help prevent blackouts in your community
- More value from your solar investment over time
In simple terms
Picture your battery as a well in your backyard. Most of the time it's there for your family. On really hot days when the whole neighborhood needs water, the city pays you to share a little — and only when they truly need it. You always keep plenty for yourself. That's a Virtual Power Plant, and it's what makes Grid Stability different: every home we install isn't just going solar, it's making California's grid stronger.
Earn extra income · Support the grid · Full backup for your home
What to expect
Exactly what happens when a grid event is triggered, and how your battery responds.
Before the event
You get a push notification with the event times. Your battery prioritizes charging to prepare. Events are usually scheduled a day ahead, though some circumstances need less notice.
During the event
A reminder lets you know your battery has begun discharging to support the grid. It continues until the event ends or it reaches your Backup Reserve. Exports are safe and measured — similar to normal solar export, not full capacity.
After the event
Your battery automatically returns to normal operation. Nothing for you to do.
You're always in charge
Three ways to control how — or whether — your battery joins an event.
Set your Backup Reserve
Your battery never dispatches below this level. It's the main way to balance what you contribute against what you keep for outages.
Opt out of one event
When an event is scheduled or active, opt out from your battery's app. Your system stops reacting to that event and resumes normal operation.
Suspend participation
A toggle in app settings pauses VPP entirely. You stay enrolled and can resume anytime — no re-enrollment needed.
For the additional kWh your battery delivers during an event, you're paid through the Emergency Load Reduction Program (ELRP).
Incentive rate
$2.00/kWh
For every additional kWh delivered during an event, beyond typical behavior.
Per event
~$16
Typical earnings per battery per event. Minimum seven events per year as of 2024.
Annual potential
$100–450
Per battery, depending on event count, battery capacity, and charge behavior.
How you get paid
At the end of the season (October 31), your total is calculated as credits based on your battery's overall contribution. The utility validates payments before payout, which may add a short delay. Once validated, request a digital payout of your earned credits in the app — the deposit typically arrives in 5–7 days. In a season with many grid emergencies, there can be up to 60 hours of events, pushing earnings toward the top of the range.
Incentive rates and program specifics are set by the ELRP and are subject to change. Earnings vary with event frequency, your battery's capacity, and your configured Backup Reserve.
Federal Tax Credit + PPA
How qualified homes get fully funded solar + battery
The federal Investment Tax Credit (ITC) is worth 30% to 70% of a solar system's cost. Providers use that credit to install systems at qualified homes through a Power Purchase Agreement (PPA) — a service agreement much like the one you already have with your utility, except the power comes from panels on your roof at a lower rate. PPAs work alongside state programs like SGIP to deliver both solar and battery backup.
The tax credit (ITC)
- Base credit: 30% of the system cost
- Can rise to 70% with adders
- Adders: low-income community, domestic content, energy community
- Providers use it to fund installations
- Works together with state programs like SGIP
Who can qualify
- Homeowners in California
- Minimum energy usage requirements
- Adequate sun exposure on the roof
- Through Grid Stability, may include extra funding for home upgrades
In simple terms
Think of a PPA as upgrading your utility service. Today you use power and pay for it. With a PPA, solar panels and a battery are installed at your home, and you pay for the electricity they produce — usually at a lower rate, with backup power during outages. The federal tax credit makes it possible by funding the installation.
$0 upfront · Lower rate than utility · Battery backup included
SGIP
Self-Generation Incentive Program — battery storage rebates
SGIP rebates lower the cost of a home battery system. The amount depends on your situation — some homeowners qualify for much larger rebates than others. The goal is to help people keep power on during outages and use more clean energy.
Who can qualify
- Homeowners in California
- Customer of PG&E, SCE, SDG&E, or SoCalGas
- Larger rebates for low-income families
- Larger rebates for homes with medical equipment
- Larger rebates for high fire-risk areas
What you get
- General rebate: helps reduce battery costs
- Equity rebate: larger rebates for qualifying homes
- Equity Resiliency: highest rebates for medical / fire areas
In simple terms
SGIP is like a coupon for batteries. Some people get a small one, others get a bigger one — the size depends on your income, where you live, and whether you have medical needs. It's often combined with the federal tax credit + PPA to make batteries affordable.
Rebates that help lower battery costs
DAC-SASH
Disadvantaged Communities — Single-family Affordable Solar Homes
This program provides no-cost solar panels to lower-income families in certain California communities, covering both the panels and installation for those who qualify. Spots are limited and there's usually a waitlist.
Who can qualify
- Own your home (not renting)
- Live in a "disadvantaged community" (checkable online)
- Household income below a certain level
- On CARE or FERA — or eligible for it
What you get
- No-cost solar panel system
- No-cost installation
- Lower electric bills
- No payments required
In simple terms
A special program for lower-income families in certain neighborhoods. If you qualify, you can get solar panels without paying — but there aren't many spots, so most people use a PPA instead, which is also $0 out of pocket.
No-cost solar for qualifying homes (limited availability)
CARE & FERA
Monthly bill-discount programs
These programs lower your electric bill every month. CARE gives a bigger discount (about 30–35% off). FERA gives a smaller discount (about 18% off) but has higher income limits. Being enrolled can also help you qualify for added solar and battery incentives.
Who can qualify
- CARE: lower-income families (about 200% of poverty level)
- FERA: households of 3+ with moderate income
- Must be a residential customer
- Available from all California utilities
What you get
- CARE: 30–35% off your electric bill
- FERA: about 18% off your electric bill
- Helps qualify for other programs
- No limit on how long you can be enrolled
In simple terms
If your family doesn't make a lot, you can get a discount on your electric bill every month — like a coupon that never expires. And being enrolled can help you qualify for free solar panels too.
Up to 35% off your bill every month
Medical Baseline
Extra low-cost power for medical equipment
If someone in your home uses medical equipment that needs electricity, you can get extra power at the lowest price. This program also helps you qualify for free battery backup through SGIP, so that equipment keeps running during outages.
Who can qualify
- Use medical equipment that needs electricity
- Need extra heating or cooling for health reasons
- A doctor fills out a short form
- Available from all California utilities
What you get
- Extra electricity at the lowest rate
- Protection from having power shut off
- Advance warning before planned outages
- Qualifies you for free battery backup (SGIP)
In simple terms
If you or someone in your family needs a machine to stay healthy — like an oxygen machine or a special bed — you get extra cheap electricity. Plus, you can get a free battery so that machine keeps working even if the power goes out.
Extra low-cost power + free battery eligibility
Net Energy Metering 3.0
Get credit for the extra solar power you make
When your panels make more power than you need, it flows back to the grid and your utility credits you for it. Under NEM 3.0, a battery helps you save even more — you can use your own solar power at night instead of exporting it during the day for less.
How it works
- Solar makes power during the day
- Extra power goes to the grid for credits
- Use credits when you need power at night
- A battery helps you keep more of your power
Why a battery helps
- Store solar power for evening use
- Avoid low daytime credit rates
- Use power when rates are highest
- Save more money overall
In simple terms
Your panels are a little power factory on your roof. When they make extra, you earn credits — but credits are worth less during the day. A battery lets you save that power and use it at night when it's worth more, like saving your allowance instead of spending it right away.
Save more with solar + battery
Quick Comparison
All programs side by side
| Program | What it's for | Who qualifies | Cost to you |
|---|---|---|---|
| Virtual Power Plant | Earn money by supporting the grid | Any home with solar + battery | Earns income |
| Federal ITC + PPA | Solar + battery, fully funded | Homeowners with minimum usage | $0 upfront |
| SGIP | Battery storage rebates | Homeowners (extra for low-income, medical, fire areas) | Reduces battery cost |
| DAC-SASH | Solar panels | Low-income homeowners in certain areas | $0 (limited spots) |
| CARE | Bill discount | Lower-income families | 30–35% off bills |
| FERA | Bill discount | Moderate-income families (3+) | 18% off bills |
| Medical Baseline | Extra cheap power + battery rebates | Homes with medical equipment needs | Low rates + SGIP |
Common Questions
Tap a question to see the answer
No. Your home's backup is always the top priority. VPP events only dispatch a portion of your stored energy during high-demand moments on the grid — never during an actual outage at your home. Your system keeps a reserve set aside, so when the power goes out, your battery is there for your family first.
A tax credit from the federal government. The base credit is 30% of the solar system cost and can rise to 70% with bonus adders — like installing in a low-income community or using American-made parts. Providers use the credit to fund installations for qualified homes through PPAs.
PPA stands for Power Purchase Agreement — a service agreement much like the one you already have with your utility. The difference: solar panels and a battery are installed at your home, and you pay for the electricity they produce instead of buying all your power from the utility. The rate is typically lower, with battery backup during outages, and the federal tax credit funds the installation so there's no upfront cost for qualified homes.
Yes. Being on CARE or FERA doesn't prevent you from qualifying for a PPA — in fact it may help you qualify for additional benefits through SGIP. The programs are designed to work together.
California has a map showing which areas qualify — usually places with more pollution, lower incomes, or other challenges. You can search your address on the CalEnviroScreen website, or ask us and we'll check for you.
Most solar programs are for homeowners. If you rent, you can still get CARE or FERA to lower your bill. There's also a program called SOMAH that puts solar on apartment buildings.
PPAs work alongside other California programs. For example, your provider may use SGIP rebates to fund the battery portion of your system, and CARE/FERA enrollment doesn't disqualify you. The programs are designed to make solar and battery backup accessible to more homeowners.
The federal tax credit runs through 2032, though the bonus adders may change. SGIP has limited funding that goes away once it's used up — so it's usually better to look into your options sooner rather than later.
Programs