California homeowners can go solar with $0 down. The right choice depends on your tax situation and how you want to interact with the new NEM 3.0 environment.
CA solar financing options:
- Solar loan ($0 down — recommended for most CA homeowners with tax liability): You own the system, keep the full 30% federal ITC (on solar + battery combined), and benefit from the CA property tax exclusion. Monthly payments often offset by reduced PG&E/SCE/SDG&E bills even under NEM 3.0 with battery. Multiple CA lenders offer 25-year solar loans.
- PACE financing (Property Assessed Clean Energy): Available through programs like Ygrene and others in many CA counties. No credit check. Repaid through property tax bill. Creates a lien — must be disclosed at sale and can affect refinancing.
- Solar lease ($0 down): Installer owns system; you pay fixed monthly lease. You do NOT receive the 30% ITC or SGIP incentive. Less favorable under NEM 3.0 because the installer (not you) captures the battery value optimization. Encumbers title.
- PPA ($0 down): Pay per kWh at below-utility rates. Installer owns system; no tax credits for you. Rate typically escalates annually. Under NEM 3.0, the PPA structure needs careful evaluation — confirm the installer optimizes battery discharge for your peak pricing hours.
Under NEM 3.0, loan ownership is more advantageous relative to lease/PPA than it was under NEM 2.0, because the battery optimization strategy (discharge during peak hours) is most valuable when you own and control the system.