Plug-In Solar in California — Legal
Bill: SB 868 — Distributed Energy Resources: Plug-In Solar Devices
Sponsor: Sen. Scott Wiener
Legislative Status: Governor Newsom's September 30, 2026 official legislative update lists SB 868 among the bills he signed. The Legislature passed it in August and presented it to him August 31. The ordinary effective date is expected to be January 1, 2027; signing does not activate the new exemption immediately.
Current Status: Signed by Governor Newsom (September 30, 2026); expected effective January 1, 2027
Is Plug-In Solar Legal in California?
Governor Newsom signed California SB 868 on September 30, 2026. The new framework for qualifying plug-in solar devices up to 1,200 W AC per dwelling is expected to take effect January 1, 2027, under California's normal effective-date rule. Signing does not make the utility exemption available immediately: follow current utility, electrical, landlord, and property requirements until it takes effect. Check the equipment conditions and your setup readiness now.
Last Updated: October 1, 2026
Key Information
| Average Electricity Rate | 31.4¢/kWh |
| Estimated Annual Savings | $350/year |
| TOU Rate Spread | 20¢/kWh |
| Peak Sun Hours/Day | 5.5 |
| Retail Choice | limited |
Key Provisions
Signed September 30, 2026; expected effective January 1, 2027. When effective, qualifying certified devices up to 1,200 W AC per dwelling are exempt from specified utility interconnection requirements and device-related fees; utilities may require online registration, not approval. Electrical and property requirements still apply.
Law Provisions
| Effective Date | January 1, 2027 (expected; ordinary California effective-date rule) |
| Wattage Limit | 1,200 watts AC per dwelling |
| UL 3700 | not_mentioned — Must be certified as a plug-in photovoltaic system by UL or equivalent nationally recognized testing laboratory (aligns with UL 3700 scope but does not name it) |
| HOA Provision | Not addressed in the bill text. |
| Renter Provision | Not explicitly addressed; applies broadly to any "customer" of an electrical corporation or publicly owned utility. |
| Utility Approval | When effective: approval waived for qualifying devices; utilities may require online registration, but registration cannot require approval |
| Permit Required | Not addressed |
| Backfeed/Net Metering | Not explicitly addressed. Device is exempt from all interconnection requirements. |
| Key Differences | Applies to both investor-owned utilities and local publicly owned electric utilities. Prohibits any fee or charge related to the device or the electricity it feeds into the building. Requires UL-certified anti-islanding feature. Must meet both NEC and California Electrical Code (Title 24, Part 3). |
| Notable Omissions | Does not address HOA restrictions. Does not explicitly address renter rights. Does not address net metering or compensation for excess generation. Does not reference UL 3700 by name. |
What You Can Do
Plan for a qualifying certified device up to 1,200 W AC per dwelling, review outlet and electrical requirements, and ask your utility about online registration. The new utility approval/fee exemption is expected January 1, 2027, not immediately on signing.
What You Can't Do (Yet)
Do not assume the new interconnection exemption applies before the expected January 1, 2027 effective date. SB 868 does not itself waive electrical, landlord, HOA, building, or property requirements or provide automatic export credits.
Available Rebates & Incentives
California Active Solar Energy System Exclusion exempts solar system value from property tax (through Jan 1, 2027). Net Billing (NEM 3.0) provides export credits locked for 9 years if interconnected before Jan 1, 2027. DAC-SASH provides $3/W for low-income customers in disadvantaged communities. SGIP offers battery storage rebates. The federal 30% ITC (Section 25D) expired December 31, 2025.
Incentive Program Links
- California Net Billing (NEM 3.0) — CPUC — Export credits locked for 9 years if interconnected before Jan 1, 2027.
- California Active Solar Energy System Exclusion — BOE — Solar systems not assessed for property tax purposes (through Jan 1, 2027).
- DAC-SASH — Low-Income Solar Program (CPUC) — $3/W for systems up to 5 kW for low-income customers in disadvantaged communities.
- Self-Generation Incentive Program (SGIP) — CPUC — Battery storage rebates for systems paired with solar.
- DSIRE — California Solar Incentives — Full list of California state and utility solar incentive programs.
Demographics (US Census 2023)
| Population | 39,431,263 |
| Total Households | 13,548,091 |
| Owner-Occupied | 7,590,948 |
| Renter-Occupied | 5,957,143 |
| Single-Family Homes | 8,408,401 |
| Apartment Units (5+) | 3,583,005 |
| Median Household Income | $99,122 |
| Median Home Value | $734,700 |
Solar Resource Data (NREL PVWatts)
| Peak Sun Hours/Day | 5.84 |
| Optimal Tilt Angle | 20° |
| Optimal Azimuth | Due South (180°) |
| Est. Annual kWh (800W system) | 1304 kWh |
| Best Solar Months | June, July, August |
Major Utilities
| Utility | Customers | Net Metering |
|---|---|---|
| Pacific Gas and Electric Co. | ~5.5 million customers | Yes |
| Southern California Edison Co. | ~3.2 million customers | Yes |
| San Diego Gas & Electric Co. | ~1.49 million customers | Yes |
| Liberty Utilities | ~51,551 customers | Yes |
| Anza Electric Cooperative, Inc. | ~5,200 customers | Yes |
News Coverage
- Governor Newsom signs SB 868 — September 30 legislative update — Office of Governor Gavin Newsom (September 30, 2026)
- California bill chapters and effective-date rules — California Secretary of State (October 1, 2026)
- Official SB 868 history — Senate concurrence and enrollment order — California Legislative Information (August 26, 2026)
- California plug-in solar bill earns approval of both legislative houses — pv magazine USA (August 26, 2026)
- California becomes latest state to approve plug-in solar — Bloomberg (August 25, 2026)
- California Legislature approves balcony solar bill — EWG (August 25, 2026)
- California Assembly Utilities Committee advances balcony solar bill — EWG (June 10, 2026)
- California Senate passes plug-in solar bill — PV Magazine USA (May 20, 2026)
- Balcony solar is taking state legislatures by storm — Canary Media (February 2026)
- Plug-in solar currently exists in a legal gray area in many states — CNN (March 3, 2026)
Explore Your Next Steps in California
Use these tools and guides alongside the state-specific rules above to evaluate your space, potential savings, and the right connection approach.
- Compare every state — Return to the national tracker to compare enacted laws, pending bills, and unclear jurisdictions.
- Check your CA setup readiness — Review placement, outlet, property, and state-rule questions before choosing equipment.
- Estimate savings in California — Use your location and setup assumptions to estimate bill savings and storage value.
- California SB 868 Passes Legislature: What Happens Next for Plug-In Solar — Read the most relevant PlugInSolarUS article for California.
- Review plug-in solar safety standards — Understand equipment certification and the safety checks that may apply to a grid-connected setup.