Editor’s note: Federal and state solar incentives change frequently, and current IRS guidance restricted the residential clean-energy credit for property placed in service after December 31, 2025. Treat any percentages or dollar amounts in this article as illustrative only — eligibility and current law vary. Always consult a qualified tax professional before relying on any credit.
Federal Solar Tax Credits in 2026
The federal Residential Clean Energy Credit has historically offered a percentage of qualified solar costs as a tax credit. Eligibility, percentage, and availability for systems placed in service in 2026 depend on current law and your individual tax situation — confirm with a qualified tax professional before assuming any specific credit amount.
What May Be Eligible
Where the credit applies, qualified expenses can include:
- Solar panels and inverters
- Battery storage systems (standalone or paired)
- Installation labor
- Permitting and inspection fees
California-Specific Incentives
Beyond the federal credit, California homeowners can benefit from:
- Net Energy Metering (NEM 3.0) — While rates have changed, solar still provides significant bill savings through exported energy credits.
- Self-Generation Incentive Program (SGIP) — Offers rebates for battery storage systems, especially in high-fire-risk areas.
- Property Tax Exclusion — Solar installations are excluded from property tax assessments through 2025, meaning your home value increases without higher taxes.
- PACE Financing — Property Assessed Clean Energy programs allow you to finance solar through your property tax bill.
Maximizing Your Savings
To get the most from available incentives:
- Confirm tax credit eligibility with a qualified tax professional before factoring it into your budget
- Add battery storage to potentially qualify for SGIP rebates
- Work with a local installer who knows Kern County permitting requirements
- Get multiple quotes to ensure competitive pricing
The Bottom Line
A combination of available federal incentives, state programs, and ongoing utility savings can make solar a strong investment for many Bakersfield homeowners. Actual return depends on your usage, utility, system, and current law.
Ready to see what you’d save? Get a free estimate from Discount Solar Solutions today.
