Utility guide · California
Is solar worth it with PG&E in 2026?
Homeowners who installed solar with PG&E years ago brag about 1:1 net metering, but today's shoppers face the Solar Billing Plan (NEM 3.0). Because PG&E pays pennies for exported power — and the federal 25D credit no longer applies to 2026 cash/loan installs — solar math usually requires a battery for self-consumption and peak avoidance.
Why PG&E bills trigger solar research
PG&E possesses some of the highest and most volatile electricity rates in the United States, with average residential rates hovering near $0.38/kWh and peak summer rates frequently crossing $0.50/kWh. Homeowners usually seek out solar after unexpected seasonal bill spikes. With the expiration of the 30% federal tax credit for cash purchases in 2026, the economics rely entirely on avoiding PG&E's retail rates through self-consumption. Sizing a system simply to match 100% of usage with panels alone no longer works; systems must be sized alongside a battery to load-shift away from the 4 PM to 9 PM time-of-use window.
SGIP Battery Rebates in 2026
PG&E customers may be eligible for the state-mandated Self-Generation Incentive Program (SGIP). While general market funds are largely exhausted, the 2026 program prioritizes low-income households, Medical Baseline customers, and homes in Tier 2/3 High Fire-Threat Districts that experience Public Safety Power Shutoffs (PSPS). Eligible Equity Resiliency customers can receive substantial per-kWh battery incentives — confirm current funding before signing.
What happens after you say yes
Local building permits and PG&E Rule 21 interconnection are separate gates. Passing a city electrical inspection does not grant Permission to Operate. Expect PTO roughly 15–45 days after inspection paperwork reaches PG&E.
Interconnection & PTO
Rule 21 Distributed Generation Interconnection — Permission to Operate (PTO) takes an average of 15 to 45 days after the municipal electrical inspection is passed.
- 1
Interconnection Application (Pre-Install)
Your installer submits a site plan, single-line electrical diagram, and equipment specifications (verifying active UL 1741 and IEEE 1547 compliance) to the PG&E portal before physical installation begins. PG&E runs a hosting capacity screen to ensure the local transformer can handle the load.
- 2
Local AHJ Permitting & Construction
Once PG&E approves the engineering review, the local city or county building department issues a permit. The physical solar and battery installation occurs, usually taking 1 to 3 days.
- 3
Municipal Electrical Inspection
A local building inspector visits your home to verify the system meets NEC Article 690 codes and rapid-shutdown safety requirements. Passing this inspection is required before the utility will grant PTO.
- 4
Permission to Operate (PTO)
Your installer forwards the signed municipal job card to PG&E. PG&E reviews the documentation, reprograms your smart meter for bidirectional data, and issues an official PTO letter. Only then can you legally energize the system.
Utility interconnection portal →
California's SolarAPP+ streamlines the local AHJ permit step for PG&E customers in participating municipalities, reducing initial permit approval times. Under the California Solar Rights Act, HOAs cannot legally ban solar installations, though they can dictate reasonable aesthetic placement. Local permit guides
Frequently asked questions
Common solar questions for this area — start a project for answers tied to your roof and utility bill.
Can I still get NEM 2.0 with PG&E?
No. The deadline to be grandfathered into NEM 2.0 passed in April 2023. All new solar applications submitted to PG&E fall under the current Solar Billing Plan (NEM 3.0).
Does the 30% federal solar tax credit still apply?
For homeowner-owned systems placed in service after December 31, 2025, Section 25D is generally unavailable. Confirm with a tax advisor. Some lease/PPA structures may still reflect commercial credits.
Your home in PG&E territory
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