Why solar

Benefits of Solar Energy for California and Arizona Homes

Utility rates keep climbing, the rules for solar have changed, and batteries matter more than ever. Here is what solar can do for your home in 2026, and how to get the most out of it.

The short answer

Is Solar Still Worth It in 2026?

For most homeowners in California and Arizona, yes. Electricity keeps getting more expensive, and every kilowatt-hour your panels produce and your home uses is one you do not buy from the utility. What has changed is how you get the best value: the right system size, a battery in many cases, and the right way to pay for it.

What changed

  • The 30% federal tax credit for homeowner-owned systems (Section 25D) ended on December 31, 2025.
  • Utilities in both states now credit the solar you send back to the grid at less than the retail price you pay.
  • Batteries have gone from a nice extra to a key part of many new systems.

What still holds

  • Solar you use at home still offsets electricity at the full retail rate.
  • Rates are still rising. SDG&E raised average residential electric rates by more than 11% in January 2026.
  • With a lease or PPA, the system owner can still claim federal tax credits, and you can go solar with $0 down.
Benefits

The Benefits of Solar Energy for Your Home

Solar does more than lower a monthly bill. Here is what homeowners gain when they make the switch.

Lower electric bills

Your panels produce power during the day that your home uses directly, cutting how much electricity you buy from the utility.

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Protection from rising rates

Utility prices in California and Arizona have climbed for years. Producing your own power with a predictable monthly payment makes your energy costs easier to plan around.

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Backup power in an outage

Standard solar shuts off when the grid goes down. Add a battery and your essentials keep running through outages and planned power shutoffs.

Explore home batteries

More energy independence

Make, store, and use your own electricity instead of relying on the utility for every kilowatt-hour, especially during expensive evening hours.

Learn about residential solar

Higher home value

An owned solar system is seen as a real home upgrade, and homes with solar tend to sell for more than similar homes without it.

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Cleaner energy

Solar panels produce electricity with no emissions while they run, reducing your home's reliance on power from fossil fuel plants.

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How solar saves

How Solar Saves You Money in California and Arizona

In both states, the value of your solar depends on where each kilowatt-hour goes. Using or storing your own power is worth far more than sending it back to the grid.

Used in your home

Worth the full retail rate you would have paid the utility.

Stored in a battery

Saved for the evening, when grid power costs the most.

Sent to the grid

Credited at a lower export rate set by your utility.

Relative value, for illustration. Actual credits vary by utility and rate plan.

California

Net billing (NEM 3.0)

New solar customers of SDG&E, SCE, and PG&E are on the Net Billing Tariff, often called NEM 3.0. Exported solar earns credits that change by time of day and are much lower than the retail rate. That is why systems are now designed around self-consumption, and why many California homes add a battery to cover the costly 4 to 9 p.m. peak.

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Arizona

Export credits and rate plans

APS credits exported solar through its Resource Comparison Proxy (RCP) rate, which is below retail and locks in for 10 years from your interconnection date. The rate for new customers has stepped down over time. SRP customers go solar on SRP's own price plans, which can include demand charges. In both cases, the right rate plan and using more of your own power make the biggest difference.

Solar in the Phoenix area
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Battery storage

Why Solar and Battery Storage Work Better Together

A battery stores the solar power you do not use during the day so you can use it at night, when rates peak and your panels stop producing. It turns low-value exports into real savings and keeps your home running when the grid goes down.

  • Use more of the solar power you produce
  • Cover the expensive evening peak hours
  • Keep essentials on during outages and shutoffs

Batteries we install

Already have solar? Add a battery to your existing system.

Financing

How to Pay for Solar After the Federal Tax Credit

The homeowner tax credit is gone, but there are still several ways to go solar with little or nothing down. We will match you with the option that fits your budget and goals.

Solar loan

Own your system from day one with $0 down and payments that are often lower than your electric bill.

Solar lease or PPA

$0 down with fixed monthly payments. SolarTech handles maintenance, and the system owner manages the tax credit.

Prepaid lease or PPA

Pay upfront at a reduced cost, with ownership of the system transferring to you after six years.

Cash purchase

Our best pricing, with no monthly payments or interest and the strongest long-term return.

Why SolarTech

Why Homeowners Choose SolarTech

We have been designing, installing, and servicing solar in California and Arizona since 2001. When you choose SolarTech, the same company stays with you long after installation day.

25+Years in business
15,000+Solar installs
1,500+Customer reviews

Our own installation team

Every system is designed, installed, and serviced by SolarTech, from permits to utility connection.

Service after installation

Our service team handles maintenance and repairs, and SolarFax monitoring helps catch issues early.

Solar service and maintenance

Premium equipment

Maxeon, REC, and Qcells panels, paired with Tesla, Enphase, and NeoVolta battery storage.

Our partnerships

Local offices

Teams based in El Cajon, Inglewood, Anaheim, Riverside, and Phoenix.

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TESTIMONIALS

Thousands of Satisfied Customers

Our commitment to quality and customer satisfaction has made us a trusted name in the solar industry. Read our testimonials to see why homeowner and businesses across the country choose SolarTech for their solar and battery storage needs.

Solar Energy Benefits: Frequently Asked Questions

Can’t find what you’re looking for? Our team of experts is here to assist with any questions you have about your solar journey.

Contact SolarTech Support

Phone

(619) 743 9193

Email

sales@solartechonline.com

1. Is solar worth it without the federal tax credit?
For many homeowners, yes. High and rising electricity rates in California and Arizona mean the power you produce and use at home is still valuable. A lease or PPA can also include federal tax credit value, because the system owner claims it. Compare your financing options.

Not always. In California, a battery is often the best way to get full value under net billing, since exported power earns lower credits. In Arizona, it depends on your utility and rate plan. A battery is also the only way to keep solar powering your home during an outage. Explore battery storage options.

Not on their own. Grid-tied solar systems shut off automatically when the grid goes down to protect utility workers. With a battery such as the Tesla Powerwall 3, your home can keep running on stored and solar power.

An owned system is generally seen as a valuable upgrade, and homes with solar tend to sell for more than similar homes without it. Leased systems work differently: they transfer to the buyer rather than adding to the home’s value directly.

Quality panels are built to produce power for 25 years or more, and SolarTech systems come with 25-year warranties. Panels lose a small amount of output each year, so a well-installed system keeps producing for decades.

Yes. SolarTech can add battery storage or extra panels to an existing solar system. Learn about upgrades and additions.

 

Ready to go solar?

Join thousands of homeowners already saving with SolarTech. No pressure. Just a free, no-obligation consultation.

15,000+ homeowners have already made the switch.