Solar Financing in California

Financing Under NEM 3.0

Because California's Net Billing Tariff (NEM 3.0) drastically reduced the compensation for exporting solar power to the grid, almost all new solar systems in the state require a battery. This pushes the total cost of a system into the $25,000 to $40,000 range, making financing more important than ever.

The End of the "Zero-Down" Solar Lease Appeal?

Under the old NEM 2.0 rules, zero-down solar leases and PPAs were incredibly popular in California because the high export rates allowed third-party companies to offer homeowners massive immediate savings. Under NEM 3.0, the math for leases is much tighter. While leases and PPAs still exist (and now include batteries), the monthly savings compared to your utility bill are smaller.

Why Ownership Wins in CA

Purchasing your system with cash or a solar loan remains the most financially advantageous path. By owning the system, you retain the 30% Federal ITC and any potential state SGIP rebates for your battery. Given the high cost of electricity from PG&E, SCE, and SDG&E, a purchased solar + battery system typically pays for itself in 6 to 9 years, insulating you from future rate hikes.