California Utility Bills Keep Rising.
Here Are Your Payment Options.

No — the federal Residential Clean Energy Credit (ITC/25D) expired for individual homeowners on December 31, 2025. New solar systems installed in 2026 do not qualify for the personal 30 percent tax credit. However, the equivalent savings are still available through the prepaid lease structure. The third-party owner of the system claims the commercial 48E credit and passes the full 30 percent discount to you at signing — no personal tax liability required. If you purchase or finance a system directly, the credit is no longer available and the full cost applies.

A PPA (Power Purchase Agreement) charges you per kilowatt-hour for the electricity the system produces. Your monthly payment varies based on actual production — lower output means a lower bill. A lease charges a fixed monthly payment regardless of how much power the system generates. Both structures have zero dollars down, no ownership, and a third party that installs and maintains the system. For most California homeowners in 2026, the PPA is the better choice because your payment is tied to real production rather than a flat rate that doesn't adjust when output drops in winter months.

Yes — NEM 3.0 (the net metering rule that changed solar in April 2023) makes battery storage essential for PG&E, SCE, and SDG&E customers. Under NEM 3.0, the credit you receive for energy exported to the grid dropped by about 75 percent. Solar without battery now exports power during the day at a low rate, then buys it back in the evening at a high rate — that erases a large portion of your savings. Solar with battery lets you store your own power and use it during expensive evening hours instead. All PPA options available through Solar With Watts include battery storage as an option, and the prepaid lease can include battery as part of the package.

Yes — the PPA is the most common zero down, no hard credit check option available in California in 2026. EnFin and LightReach both use a soft credit pull only, which does not affect your credit score and has a high approval rate. PACE financing through HomeRun goes further — it requires no credit check at all because the loan is tied to your property equity and your property tax payment history, not your personal credit score. PACE is also available for homeowners who want to bundle roofing, windows, or HVAC with solar in a single no-credit-check structure.

A solar PPA in California charges a per-kilowatt-hour rate that is set below your current utility price — typically 10 to 20 percent lower than what you currently pay. Your monthly bill depends on how much power your system actually produces. For a typical California home using 800 to 1,000 kilowatt-hours per month, a PPA payment usually runs between 80 and 150 dollars per month depending on system size, your utility, and the specific PPA rate locked at signing. Your utility still provides the grid connection and handles any power your system does not cover. The exact rate and monthly estimate is calculated based on your specific bill — use the free calculator to see real numbers for your home.

PACE (Property Assessed Clean Energy) financing lets you pay for solar through your property tax bill with no credit check required. The loan is tied to your home, not your personal credit — which makes it accessible for homeowners who don't qualify for traditional financing. Payments are added to your annual property tax bill over a term of 10 to 25 years. The key thing to understand before signing is that PACE places a lien on your home, which can complicate refinancing or selling if the balance is large. It is the right choice for some homeowners — especially those who also need roofing or HVAC work — but it is worth reviewing the full terms with your advisor before committing. Solar With Watts will walk you through the PACE structure honestly before you sign anything.

The prepaid lease is typically the strongest option for retirees and homeowners on fixed income in California. You pay once upfront — often using home equity or savings — and eliminate your utility bill for the life of the system with no monthly payments, no credit check, and no ongoing financial obligation. The 30 percent discount built into the prepaid lease pricing means you get the same savings as the old federal tax credit without needing taxable income to claim it. For retirees who prefer zero upfront cost, the PPA is the next best option — a predictable monthly rate well below your current utility bill with no ownership responsibility.

SDG&E customers benefit more from battery storage than almost any other utility territory in the country because of their peak time-of-use rates above 50 cents per kilowatt-hour. Under SDG&E's rate schedule, electricity costs the most between 4 in the afternoon and 9 in the evening — exactly when solar panels stop producing. A battery charged during the day dispatches that stored power during the expensive evening window, avoiding the highest rates entirely. The savings from this arbitrage alone — charging at low daytime rates and discharging during peak hours — can make a battery pay for itself significantly faster for SDG&E customers than for PG&E or SCE customers.

Solar With Watts serves homeowners statewide across California, including all five major utility territories. We work with PG&E customers in Northern and Central California, SDG&E customers in San Diego County, SCE customers in Southern California and the Inland Empire, SMUD customers in Sacramento County, and Pioneer Community Energy customers in the Placer County foothills. Every financing option on this page is available across all territories, though specific products like the SMUD battery rebate are utility-specific. If you are not sure which utility serves your home, check your electricity bill or enter your zip code in the calculator to get territory-specific options and savings estimates.