How to Get Solar Incentives in Long Beach

Long Beach, California, is one of the most forward-thinking cities in the nation when it comes to renewable energy adoption. With over 300 days of sunshine annually, abundant solar potential, and strong local policies supporting clean energy, residents have a unique opportunity to reduce energy costs, increase property value, and contribute to a sustainable future—all through solar power. But the real advantage lies in the financial incentives available to homeowners and businesses that install solar energy systems. Understanding how to get solar incentives in Long Beach is not just about saving money; it’s about maximizing your return on investment and ensuring your solar project is as efficient and profitable as possible.

The landscape of solar incentives in Long Beach is layered—combining federal, state, and local programs that can reduce the upfront cost of a solar installation by 50% or more. From the federal Investment Tax Credit (ITC) to California’s Self-Generation Incentive Program (SGIP), and Long Beach’s own property tax exclusion and rebate offerings, the opportunities are substantial. However, navigating these programs requires careful planning, timely applications, and accurate documentation. This guide walks you through every step of the process, equipping you with the knowledge to claim every incentive you qualify for—without missing deadlines or making common errors that could cost you thousands.

Step-by-Step Guide

Step 1: Assess Your Eligibility

Before investing in solar panels, determine whether you qualify for incentives. Most programs have specific criteria based on property type, income level, system size, and installation date.

First, confirm that your property is located within Long Beach city limits. While many state and federal incentives apply statewide, some local rebates are exclusive to Long Beach residents. You can verify your address using the City of Long Beach’s official GIS mapping tool or by contacting the Long Beach Department of Public Works.

Next, evaluate your property’s suitability for solar. Your roof should have adequate space, minimal shading, and structural integrity to support panels. A south-facing roof with a pitch between 15° and 40° is ideal, but east- and west-facing roofs can still be effective. If you live in a homeowners association (HOA), check your governing documents—California’s Solar Rights Act prohibits HOAs from blocking solar installations, though they may impose reasonable aesthetic guidelines.

Income-based incentives, such as the California Solar Initiative - Thermal (CSIT) or the Single-Family Affordable Solar Homes (SASH) program, are available for low-to-moderate-income households. If your household income is at or below 80% of the Area Median Income (AMI), you may qualify for additional grants or reduced-cost installations. You can check your AMI status using the California Energy Commission’s income eligibility calculator.

Step 2: Choose a Reputable Solar Installer

Not all solar installers are created equal. To qualify for incentives, your system must be installed by a licensed professional who complies with state and local regulations. In California, installers must hold a valid C-10 (Electrical) or C-46 (Solar) license from the Contractors State License Board (CSLB).

Look for installers with a proven track record in Long Beach. Check their reviews on the Better Business Bureau, Google, and EnergySage. Ask for references from past Long Beach customers and request proof of completed projects in your neighborhood. A reputable installer will have experience navigating local permitting processes and incentive applications.

Ensure the installer is registered with the California Energy Commission (CEC) as a participating provider under the California Solar Initiative (CSI). This registration is required to access state-level rebates. You can verify an installer’s status on the CEC’s website under the “Program Participants” section.

Also, confirm that the installer offers equipment that is CEC-certified. Only panels, inverters, and batteries listed on the CEC’s qualified products list are eligible for incentives. Avoid cheap, unlisted components—even if they’re cheaper—because they may disqualify your entire system from receiving rebates or tax credits.

Step 3: Design Your Solar System

Work with your installer to design a system that maximizes both energy production and incentive eligibility. Most incentives are based on system size (measured in kilowatts), so oversizing may not always be beneficial.

For federal tax credits, there is no cap on system size, but for state and local rebates, limits often apply. For example, the SGIP provides rebates for solar-plus-storage systems, but only up to 10 kW of solar capacity per residential customer. If you’re installing a battery, ensure the system is designed to meet SGIP’s eligibility requirements, including minimum storage capacity and discharge duration.

Be strategic about your energy usage. A system sized to cover 80–100% of your annual electricity consumption is ideal. Going beyond that may result in excess generation that’s only compensated at lower wholesale rates under California’s Net Energy Metering (NEM) 3.0 policy. Your installer should provide a detailed energy forecast based on your historical usage and local weather patterns.

Document every design decision. Incentive applications often require system schematics, equipment specifications, and performance estimates. Keep all design files, emails, and contracts organized in a dedicated folder for future reference.

Step 4: Apply for Local Permits

Before installation begins, you must obtain permits from the City of Long Beach Building and Safety Division. This step is non-negotiable—unpermitted systems cannot receive incentives.

Permit applications are submitted online through the City of Long Beach’s ePermitting portal. You’ll need to provide:

• Electrical and structural plans
• Equipment specifications (CEC-certified)
• Site plans showing panel placement and setbacks
• Proof of installer licensure

The city typically processes residential solar permits within 10–15 business days. Expedited review is available for a fee if you need faster approval.

Once approved, keep a printed copy of your permit and display it visibly at the installation site. Inspectors will verify it during the final inspection.

Step 5: Install Your Solar System

Installation should follow all applicable codes: the National Electrical Code (NEC), California Electrical Code (CEC), and Long Beach Municipal Code. Your installer should schedule inspections at three critical stages:

• Pre-roof inspection: Confirms structural support and mounting hardware
• Electrical rough-in inspection: Verifies wiring and conduit installation
• Final inspection: Confirms all components are installed, labeled, and functioning

Do not proceed to the next step until the final inspection is passed. The inspector will issue a Certificate of Compliance, which is required for incentive applications and utility interconnection.

Step 6: Interconnect with the Utility

After passing inspection, contact Southern California Edison (SCE), Long Beach’s electricity provider, to request interconnection. This process allows your solar system to feed excess energy back into the grid under NEM 3.0.

Submit the Interconnection Agreement through SCE’s online portal. You’ll need to provide:

• Final inspection certificate
• System specifications
• Installer contact information

SCE typically responds within 10–20 days. Once approved, they will install a bi-directional meter to track energy exports and imports. Do not turn on your system until you receive written confirmation from SCE that interconnection is complete.

Step 7: Apply for Federal Tax Credits

The federal Investment Tax Credit (ITC) allows you to deduct 30% of your total solar system cost—including panels, inverters, mounting hardware, labor, and battery storage—from your federal income taxes. This credit applies to systems installed between 2022 and 2032.

To claim the ITC:

1. Keep all receipts and contracts related to your solar installation.
2. Complete IRS Form 5695: Residential Energy Credits.
3. Attach Form 5695 to your federal tax return (Form 1040).
4. Report the credit on Line 6 of Form 5695 and transfer the amount to Line 20 of Form 1040.

You do not need to itemize deductions to claim the ITC. If your tax liability is less than the credit amount, the remaining balance can be carried forward to future tax years. The credit is available to homeowners who own (not lease) their solar system.

Step 8: Apply for State and Local Incentives

California offers several key incentives beyond the federal credit:

Self-Generation Incentive Program (SGIP)

SGIP provides rebates for battery storage systems paired with solar. The incentive is calculated per kilowatt-hour of storage capacity and varies by utility region. In SCE’s service area, residential customers may receive up to $400 per kWh of storage, with priority given to low-income households and those in fire-prone areas.

To apply:

• Submit an application through the SGIP portal before installation begins
• Provide system design documents and equipment specifications
• Wait for approval and a reservation of funds
• Complete installation and submit final documentation
• Receive rebate payment within 6–12 weeks

California Solar Initiative (CSI) - Thermal

While primarily for solar water heating, this program occasionally offers incentives for hybrid solar-electric systems that include thermal components. Check eligibility if your system includes solar thermal integration.

Long Beach Property Tax Exclusion

California law (Section 73 of the Revenue and Taxation Code) excludes the added value of solar installations from your property tax assessment. This means your property taxes will not increase due to the solar system—even if your home’s market value rises.

No application is required. Once your system is permitted and installed, the county assessor’s office will automatically update your assessment. Confirm this by checking your next property tax bill—it should not reflect the added value of your solar system.

Net Energy Metering (NEM) 3.0

NEM 3.0 compensates you for excess solar energy sent to the grid. While the rates are lower than under NEM 2.0, they still provide significant savings. Your bi-directional meter tracks your exports and imports monthly, and you receive credits on your bill.

Under NEM 3.0, you’ll pay a monthly Non-Bypassable Charge (NBC) and a Grid Participation Charge (GPC). These fees are small compared to the value of your solar generation. To maximize benefits, time high-consumption activities (like laundry or EV charging) for daylight hours when your panels are producing.

Step 9: Submit All Applications and Track Deadlines

Each incentive has its own application window and deadline. Missing a deadline can cost you thousands.

Here’s a recommended timeline:

• 6–12 months before installation: Research incentives, pre-apply for SGIP if applicable
• 3–6 months before: Get quotes, select installer, finalize system design
• 1–2 months before: Submit permit application
• During installation: Keep all receipts, take photos of equipment
• Within 30 days after final inspection: Apply for SGIP, SCE interconnection, and federal tax credit documentation
• By April 15 of the following year: File federal tax return with Form 5695

Set calendar reminders for each milestone. Use a digital tracker or spreadsheet to monitor application status and required documents.

Step 10: Maintain Your System and Report Changes

Once your system is live, perform routine maintenance: clean panels twice a year, check for shading from new tree growth, and monitor performance via your inverter’s app.

If you make structural changes to your home (e.g., roof replacement, additions), notify your installer and the city. Some incentives require ongoing compliance. Failure to report major modifications may result in clawbacks or disqualification from future programs.

Keep all documentation for at least seven years. In case of an audit or incentive review, you’ll need to prove system ownership, installation date, and equipment specifications.

Best Practices

Maximizing your solar incentives isn’t just about ticking boxes—it’s about adopting a strategic mindset. Here are best practices that separate high-reward solar owners from those who leave money on the table.

1. Apply for Incentives Early

Many programs, especially SGIP, have limited funding and operate on a first-come, first-served basis. Applying early ensures you secure your rebate before funds are exhausted. Even if your installation isn’t complete, pre-applying for SGIP reserves your place in line.

2. Bundle Storage with Solar

Adding a battery to your solar system can double your incentive value. SGIP rebates for storage are often higher than solar-only rebates, and batteries increase your energy independence during grid outages. If you live in a fire-prone or outage-prone area, this combination is especially valuable.

3. Avoid Leasing or Power Purchase Agreements (PPAs)

Leasing or signing a PPA means the solar company owns your system—and therefore, they receive the tax credits and rebates. You may save on monthly bills, but you won’t benefit from the full financial upside. Owning your system outright is the only way to claim federal and state incentives.

4. Document Everything

Keep digital and physical copies of:

• Contracts and invoices
• Permit approvals
• Inspection reports
• Utility interconnection approvals
• Equipment serial numbers and CEC certifications
• Photos of installed system

Store these in a secure cloud folder and back them up. Many applicants lose their incentives because they can’t produce proof of purchase or installation.

5. Time Your Installation Strategically

The federal ITC is set to step down to 26% in 2033 and 22% in 2034. To lock in the full 30%, complete your installation before the end of 2032. Also, SGIP funding is replenished annually but often runs out by summer. Aim to complete your project by late spring to avoid funding shortages.

6. Combine Incentives with Energy Efficiency Upgrades

Improving your home’s energy efficiency can reduce the size—and cost—of your solar system. Seal air leaks, upgrade insulation, and replace old appliances. These upgrades may qualify for additional rebates through California’s Energy Upgrade California program, further lowering your net investment.

7. Stay Informed on Policy Changes

California’s solar policies evolve rapidly. Subscribe to updates from the California Energy Commission, the Long Beach Department of Public Works, and the Solar Energy Industries Association (SEIA). Changes to NEM 3.0, SGIP funding caps, or tax credit rules can impact your eligibility.

Tools and Resources

Several trusted tools and resources are available to simplify the process of claiming solar incentives in Long Beach.

1. California Energy Commission (CEC) Website

www.energy.ca.gov is the official source for state-level solar incentives, including SGIP, CSI, and NEM 3.0 rules. Use the “Solar Incentives” section to find eligibility criteria, application portals, and funding status.

2. Database of State Incentives for Renewables & Efficiency (DSIRE)

www.dsireusa.org is the most comprehensive database of U.S. renewable energy incentives. Search for “Long Beach, CA” to see a full list of federal, state, and local programs with links to official applications.

3. Long Beach City ePermitting Portal

epermit.longbeach.gov allows you to apply for solar permits, track application status, and download inspection reports—all online.

4. Southern California Edison (SCE) Solar Programs Page

www.sce.com/residential/solar provides details on NEM 3.0, interconnection requirements, and net metering credits.

5. EnergySage Solar Marketplace

www.energysage.com lets you compare quotes from pre-vetted installers in Long Beach. It also includes an incentive calculator that estimates your savings based on your location, system size, and utility.

6. IRS Form 5695 and Instructions

Download the latest version of Form 5695 and its instructions directly from the IRS website to ensure accurate federal tax credit claims.

7. SGIP Application Portal

Apply for SGIP rebates at www.sgip.com. The portal includes eligibility checklists, application templates, and a funding tracker.

8. Long Beach Green Building Program

The City of Long Beach offers additional incentives for green building upgrades. Visit www.longbeach.gov/greenbuilding to learn about rebates for solar, EV chargers, and energy-efficient appliances.

Real Examples

Real-world examples illustrate how homeowners in Long Beach have successfully claimed incentives and reduced their solar costs.

Example 1: The Martinez Family

The Martinez family installed a 7.2 kW solar system with a 10 kWh Tesla Powerwall in May 2023. Their total system cost was $32,000.

• Federal ITC: 30% of $32,000 = $9,600 tax credit
• SGIP Battery Rebate: 10 kWh × $350/kWh = $3,500
• Property Tax Exclusion: $25,000 added value excluded from assessment
• Net Energy Metering: Reduced annual electricity bill from $1,800 to $120

After incentives, their net out-of-pocket cost was $18,900. They recovered their investment in under 6 years and now enjoy $1,680 in annual savings.

Example 2: The Rivera Homeowners Association

A 12-unit condo complex in West Long Beach installed a 48 kW shared solar system on the rooftop in 2022. The HOA applied for SGIP and the federal ITC, and qualified for the Low-Income Solar Program because 40% of residents met income thresholds.

• Federal ITC: $144,000 total cost × 30% = $43,200 credit
• SGIP: $12,000 rebate for storage integration
• Low-Income Solar Bonus: $20,000 additional grant

Total incentives: $75,200. The HOA reduced monthly dues by $85 per unit and eliminated electricity bills for common areas.

Example 3: The Chen Family (Low-Income Household)

Ms. Chen, a single mother earning 65% of AMI, qualified for the SASH program. She received a fully funded 5.5 kW solar system at no cost. Her monthly electricity bill dropped from $150 to $0. She also received a $2,500 SGIP rebate for adding a small battery, which now powers her medical equipment during outages.

Her story highlights how targeted incentives can transform energy access for vulnerable communities.

FAQs

Can I get solar incentives if I rent my home?

No. Most solar incentives require you to own the property and the solar system. Renters cannot claim the federal tax credit or SGIP rebates. However, you can advocate for your landlord to install solar—many landlords benefit from increased property value and tenant retention.

Do I need to pay taxes on solar incentives?

Federal and state solar incentives are not considered taxable income. The federal ITC is a tax credit, not a rebate, so it reduces your tax liability directly. SGIP rebates and local grants are also non-taxable under current IRS and California state law.

What happens if I sell my home after installing solar?

Any incentives you’ve claimed are yours to keep. Solar systems typically increase home resale value by 3–4%, according to Zillow. Buyers benefit from lower utility bills and may be eligible for future incentives if they add storage or expand the system.

Can I apply for incentives if I installed solar last year?

Yes—if you haven’t already claimed them. The federal ITC can be claimed in the tax year the system was placed in service. If you installed in 2023, you can claim the credit on your 2023 tax return filed in 2024. SGIP applications must be submitted before installation, but you may still be eligible for late applications if funding remains.

Are there incentives for solar-powered EV chargers?

Yes. Long Beach and SCE offer rebates for Level 2 EV chargers. If the charger is powered by your solar system, you may qualify for additional incentives under the Clean Vehicle Rebate Project (CVRP) or the California Electric Vehicle Infrastructure Project (CALeVIP).

Can I stack multiple incentives?

Yes. Federal, state, and local incentives are designed to be stacked. You can claim the federal ITC, SGIP, property tax exclusion, and NEM credits simultaneously. The only restriction is that you cannot double-dip on the same expense—e.g., you can’t claim a rebate for a component already covered by a tax credit.

What if my application is denied?

Review the denial letter carefully. Common reasons include incomplete documentation, unlisted equipment, or late submission. You can usually reapply with corrected materials. Contact the administering agency for clarification—many have online help desks or email support.

Do solar incentives expire?

Some do. SGIP funding is allocated annually and may run out. The federal ITC steps down after 2032. Property tax exclusion and NEM 3.0 are permanent policies. Act promptly to secure time-sensitive incentives.

Conclusion

Getting solar incentives in Long Beach is one of the most financially savvy decisions a homeowner or business owner can make. With the right approach, you can reduce the cost of a solar installation by half or more—turning a significant upfront investment into a long-term source of savings, energy independence, and environmental impact.

This guide has walked you through every step—from assessing eligibility and selecting an installer to applying for federal tax credits and local rebates. You’ve learned best practices to avoid costly mistakes, tools to simplify the process, and real examples of how others have succeeded.

The key takeaway? Don’t delay. Solar incentives are powerful, but they’re not infinite. Funding for programs like SGIP is limited, and the federal tax credit is scheduled to decrease. By acting now, you lock in the maximum possible savings.

Whether you’re motivated by lower bills, climate responsibility, or increased property value, the path to solar in Long Beach is clear, accessible, and highly rewarding. Use this guide as your roadmap. Gather your documents, choose your installer, and take the next step toward energy freedom.

Long Beach shines brightly—not just because of its coastline and sunshine, but because its residents are choosing a cleaner, smarter future. Be one of them.