California Plug-In Solar: Laws, Permits & Savings | PlugInSolarUS

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.

Check your setup readiness

Last Updated: October 1, 2026

Key Information

Average Electricity Rate31.4¢/kWh
Estimated Annual Savings$350/year
TOU Rate Spread20¢/kWh
Peak Sun Hours/Day5.5
Retail Choicelimited

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 DateJanuary 1, 2027 (expected; ordinary California effective-date rule)
Wattage Limit1,200 watts AC per dwelling
UL 3700not_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 ProvisionNot addressed in the bill text.
Renter ProvisionNot explicitly addressed; applies broadly to any "customer" of an electrical corporation or publicly owned utility.
Utility ApprovalWhen effective: approval waived for qualifying devices; utilities may require online registration, but registration cannot require approval
Permit RequiredNot addressed
Backfeed/Net MeteringNot explicitly addressed. Device is exempt from all interconnection requirements.
Key DifferencesApplies 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 OmissionsDoes 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

Demographics (US Census 2023)

Population39,431,263
Total Households13,548,091
Owner-Occupied7,590,948
Renter-Occupied5,957,143
Single-Family Homes8,408,401
Apartment Units (5+)3,583,005
Median Household Income$99,122
Median Home Value$734,700

Solar Resource Data (NREL PVWatts)

Peak Sun Hours/Day5.84
Optimal Tilt Angle20°
Optimal AzimuthDue South (180°)
Est. Annual kWh (800W system)1304 kWh
Best Solar MonthsJune, July, August

Major Utilities

UtilityCustomersNet Metering
Pacific Gas and Electric Co.~5.5 million customersYes
Southern California Edison Co.~3.2 million customersYes
San Diego Gas & Electric Co.~1.49 million customersYes
Liberty Utilities~51,551 customersYes
Anza Electric Cooperative, Inc.~5,200 customersYes

News Coverage

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.