California Programs
Self Generation & Battery Incentive Programs
California has several programs that help homeowners get solar panels and batteries at no cost. Here's a simple guide to understanding each one.
Why Does California Have These Programs?
California wants to help people use clean energy. The state also wants to make sure the power grid stays strong during hot days and emergencies. To do this, California created programs that help pay for solar panels and batteries. Some programs are for everyone. Others are for people who need extra help, like those with lower incomes or medical needs.
Modern solar systems don't just generate power for your home—they actively help strengthen the grid. Every home that goes solar with Grid Stability becomes part of a Virtual Power Plant: a connected network of batteries that support California's electricity supply when it's needed most. That means your home isn't just a customer anymore. It's part of the solution.
100% Subsidized
Federal Tax Credit still available through VPP
$0
Upfront Cost
6+
Support Programs Available
Virtual Power Plant (VPP)
Your Home Becomes Part of California's Power Network
Become part of a Virtual Power Plant—a network of thousands of connected home batteries that work together to support California's grid. During times of 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 participating. Your home's backup power is always prioritized first.
How It Works
- Fully funded solar + battery system connects to a grid network
- On high-demand days, utilities signal batteries to dispatch power
- Your battery shares a small portion of its charge with the grid
- 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 participate in
- Full backup power during actual outages at your home
- Help prevent blackouts in your community
- Makes your solar investment more valuable over time
In Simple Terms
Imagine your battery is like a water well in your backyard. Most of the time, it's there for you and your family. But on really hot days when the whole neighborhood needs water, the city pays you to share just a little from your well. You still have plenty for yourself—they only borrow extra, and only when they really need it. That's how a Virtual Power Plant works with electricity, and it's part of what makes Grid Stability different: every home we install isn't just going solar, it's joining a network that makes California's grid stronger.
Earn Extra Income • Support the Grid • Full Backup for Your Home
What to Expect
Here's exactly what happens when a grid event is triggered and how your battery responds.
Before the Event
When an event is scheduled, you'll receive a push notification with event times. Your battery will prioritize charging to prepare. Events are usually scheduled a day ahead, but circumstances may require less notice.
During the Event
You'll get a reminder notification as your battery begins discharging to support the grid. It continues until the event ends or until it reaches your selected Backup Reserve. The amount exported is safe and measured—similar to typical solar export, not always full capacity.
After the Event
Once the event is complete, your battery automatically resumes normal operation. No action needed from you.
Controlling Your Participation
You have three ways to control how your battery participates in VPP events—you're always in charge.
Compensation
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
Paid for every additional kWh delivered during an event, beyond typical behavior.
Per Event
~$16
Typical earnings per battery per event. Minimum of seven events per year as of 2024.
Annual Potential
$100–$450
Per battery, depending on the number of emergency events and your battery's capacity and charge behavior.
How You Get Paid
At the end of the season (October 31), your total payment is calculated in the form of credits based on your battery's overall contribution. Payments must be validated by the utility before payout, which may cause a short delay. Once validated, you can request a digital payout of your earned credits through your app—the deposit typically arrives within 5 to 7 days. If California's grid experiences a significant number of emergencies, there could be as many as 60 hours of events in a season, which pushes earnings toward the higher end of the annual range.
Incentive rates and program specifics are set by the ELRP and are subject to change. Earnings vary based on event frequency, your battery's energy capacity, and your configured Backup Reserve.
Federal Tax Credit + PPA
How Qualified Homes Get Fully Funded Solar + Battery
The federal Investment Tax Credit (ITC) provides a tax credit worth 30% to 70% of a solar system's cost. Solar providers use this credit to install systems at qualified homes through a Power Purchase Agreement (PPA). A PPA is a service agreement—similar to the one you already have with your utility—except the power comes from panels on your roof at a lower rate. PPAs work alongside other California programs like SGIP to provide both solar and battery backup.
The Federal Tax Credit (ITC)
- Base credit: 30% of the system cost
- Can increase up to 70% with adders
- Adders include: low-income community, domestic content, energy community
- Solar providers use this to fund installations
- Works together with state programs like SGIP
Who Can Qualify
- Homeowners in California
- Minimum energy usage requirements
- Adequate sun exposure on roof
- Through Grid Stability, homeowners may receive extra funding for home upgrades
In Simple Terms
Think of a PPA like upgrading your utility service. Right now, you have a service agreement with your electric company—you use power and pay for it. With a PPA, you get an upgraded service: solar panels and a battery are installed at your home, and you pay for the electricity they produce. The rate is typically lower than what you pay now, and you get backup power during outages. The federal tax credit makes this possible by helping fund the installation.
$0 Upfront • Lower Rate Than Utility • Battery Backup Included
SGIP (Self-Generation Incentive Program)
Battery Storage Incentive
SGIP provides rebates that help lower the cost of home battery systems. The rebate amount varies depending on your situation—some homeowners qualify for larger rebates than others. The program is designed to help people keep their power on during outages and use more clean energy.
Who Can Qualify
- Homeowners in California
- Must be a customer of PG&E, SCE, SDG&E, or SoCalGas
- Larger rebates for low-income families
- Larger rebates for people with medical equipment
- Larger rebates for homes in 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 coupon, others get a bigger one. The size depends on your income, where you live, and if you have medical needs. This rebate is often combined with the Federal Tax Credit + PPA to make batteries affordable.
Rebates to Help Lower Battery Costs
DAC-SASH
Disadvantaged Communities - Single-family Solar Homes
This program provides no-cost solar panels to families with lower incomes who live in certain areas of California. Spots are limited and there's usually a waitlist. The program covers the panels and installation for those who qualify.
Who Can Qualify
- Own your home (not renting)
- Live in a "disadvantaged community" (you can check online)
- Have a household income below a certain level
- Be on CARE or FERA energy program (or qualify for it)
What You Get
- No-cost solar panel system
- No-cost installation
- Lower electric bills
- No payments required
In Simple Terms
This is a special program for families with lower incomes in certain neighborhoods. If you qualify, you can get solar panels without paying. But there aren't many spots available, so most people use a PPA instead (which is also $0 out of pocket).
No-Cost Solar for Qualifying Homes (Limited Availability)
CARE & FERA
Bill Discount Programs
These programs lower your electric bill every month. CARE gives you a bigger discount (about 30-35% off). FERA gives you a smaller discount (about 18% off) but has higher income limits. Being on these programs can also help you qualify for additional solar and battery incentives.
Who Can Qualify
- CARE: Lower income families (about 200% of poverty level)
- FERA: Families with 3+ people and 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 of money, you can get a discount on your electric bill every single month. It's like having a coupon that never expires. And being in this program can help you get free solar panels too!
Up to 35% Off Your Bill Every Month
Medical Baseline
Extra 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 your medical equipment keeps working during power outages.
Who Can Qualify
- Use medical equipment that needs electricity
- Need extra heating or cooling for health reasons
- Need a doctor to fill out a form
- Available from all California utilities
What You Get
- Extra electricity at the lowest rate
- Protection from having power shut off
- Advance warning before any 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 your machine keeps working even if the power goes out.
Extra Low-Cost Power + Free Battery Eligibility
Net Energy Metering (NEM 3.0)
Get Credit for Extra Solar Power
When your solar panels make more power than you need, it goes back to the electric grid. Your utility company gives you credit for that power. With NEM 3.0, having a battery helps you save even more because you can use your solar power at night instead of sending it back during the day.
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
- Battery helps you keep more of your power
Why 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 solar panels are like a little power factory on your roof. When they make extra power, you get credits. But the credits are worth less during the day. A battery lets you save that power and use it at night when it's worth more. It's like saving your allowance instead of spending it right away!
Save More With Solar + Battery
Quick Comparison
| 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 you income |
| Federal ITC + PPA | Solar + Battery (fully funded) | Homeowners with minimum energy usage | $0 upfront |
| SGIP | Battery storage rebates | All homeowners (extra help for low-income, medical, fire areas) | Reduces battery cost |
| DAC-SASH | Solar panels | Low-income homeowners in certain areas | $0 (very limited spots) |
| CARE | Bill discount | Lower income families | 30-35% off bills |
| FERA | Bill discount | Moderate income families (3+ people) | 18% off bills |
| Medical Baseline | Extra cheap power + battery rebates | Homes with medical equipment needs | Low rates + SGIP eligibility |
Common Questions
Will my battery be drained during an outage if it's part of a VPP?
No. Your home's backup power is always the top priority. Virtual Power Plant events only dispatch a portion of your battery's stored energy during high-demand moments on the grid—never during an actual outage at your home. Your system is configured to keep a reserve set aside for backup, so when the power goes out, your battery is there for you and your family first.
What is the Federal Investment Tax Credit (ITC)?
The ITC is a tax credit from the federal government. The base credit is 30% of the solar system cost, but it can go up to 70% with bonus adders (for things like installing in a low-income community or using American-made parts). Solar providers use this credit to fund installations for qualified homes through PPAs.
What is a PPA and how is it different from my current utility?
PPA stands for Power Purchase Agreement. It's a service agreement—similar to the one you already have with your utility company. The difference is that with a PPA, 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, and you get battery backup during outages. The federal tax credit helps fund the installation so there's no upfront cost for qualified homes.
Can I be on CARE or FERA and still get solar?
Yes. Being on CARE or FERA (bill discount programs) doesn't prevent you from qualifying for a PPA. In fact, being on these programs may help you qualify for additional benefits through SGIP. The programs are designed to work together.
How do I know if I live in a "disadvantaged community"?
California has a map that shows which areas qualify. These are usually places that have more pollution, lower incomes, or other challenges. You can search your address online at the CalEnviroScreen website, or ask us and we can check for you.
What if I rent my home instead of owning it?
Most solar programs are only for homeowners. But if you rent, you can still get CARE or FERA to lower your electric bill. There's also a program called SOMAH that puts solar on apartment buildings.
How does a PPA work with other programs?
PPAs can work alongside other California programs. For example, your solar provider may use SGIP rebates to help fund the battery portion of your system. If you're on CARE or FERA, you can still qualify for a PPA. The programs are designed to work together to make solar and battery backup accessible to more homeowners.
How long are these programs available?
The federal tax credit is available through 2032, though the bonus adders may change. SGIP has limited funding that goes away when it's used up. It's usually better to look into your options sooner rather than later.