California Solar Consumer Protection Guide

California Solar Consumer Protection Guide
California Solar Consumer Protection Guide Overview & FAQ
Check out the California Solar Consumer Protection Guide for the latest solar energy information & installation requirements.
Solar Consumer Protection Guide
The California Public Utilities Commission (CPUC) recommends that solar providers give out this guide during their first contact with potential customers. Version 4 of the Consumer Protection Guide was published in 2025.
Solar Consumer Protection Guide - Version 4
Solar Consumer Protection Guide - Version 4 - Fillable
Solar providers submitting applications to interconnect residential solar customers in the service areas of Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), Bear Valley Electric Service (BVES), PacifiCorp, and Liberty are required to collect customer initials and a signature on the California Solar Consumer Protection Guide. Customers must be given time to read the Guide thoroughly before signing.
Consumer Protection Guide in Additional Languages
Solar providers should provide the Consumer Protection Guide in the language in which customers were initially contacted.
Armenian Solar Consumer Protection Guide (version 4)
Chinese Solar Consumer Protection Guide (version 4)
Dari Solar Consumer Protection Guide (version 4)
English Solar Consumer Protection Guide (version 4)
Korean Solar Consumer Protection Guide (version 4)
Portuguese Solar Consumer Protection Guide (version 4)
Spanish Solar Consumer Protection Guide (version 4)
Tagalog Solar Consumer Protection Guide (version 4)
Vietnamese Solar Consumer Protection Guide (version 4)
Version 3 and Addendum
Version 3 of the Solar Consumer Protection Guide was published in 2022. An addendum to Version 3 was published in 2025. This addendum contains information on the Solar Billing Plan, also known as the Net Billing Tariff or NEM 3.
Solar Consumer Protection Guide Version 3
Addendum to Solar Consumer Protection Guide
Extended Consumer Protection Guide
Getting solar and/or storage installed for your home can be an intimidating process. See below for information on how to protect yourself from scams, finding a good solar provider, financing options, and other resources.
A Guide to Installing Solar and Storage
Most solar providers are honest and fair. However, there are still some false claims you need to watch out for. Do not do business with a
salesperson
who
makes one of these false claims.
"You can get free solar energy at no cost to you."
Solar energy is rarely free. An honest company will be upfront about all the costs you will pay over time. There is one exception: a few government-funded solar programs offer free or low-cost solar to low-income households. Learn more about these programs here:
Low Income Solar Programs
"You will never pay an electricity bill ever again after a solar system is installed."
After going solar,
you will typically pay a reduced electricity bill every month
and potentially a larger electricity bill at the end of the 12-month cycle, depending on how much electricity you consumed from the grid.
Customers who take out a solar loan or sign a lease or power purchase agreement will also receive a monthly bill from a loan company or solar provider.
If you use Property Assessed Clean Energy (PACE) financing, you will also make a payment once or twice a year with your property taxes or monthly with your mortgage payment.
"Time is running out and you must
quickly sign
an electronic tablet to get solar."
An honest salesperson would never rush you to sign anything without giving you time to review what you are signing. Cal
ifornia law requires that a salesperson show you the contract terms before you sign.
nscrupulous salespeople might skip
key parts of the contract and financial information
specially on a tablet
. Ask to see all forms fully
an
d be given time to
read through
everything before you sign anything.
You
can
ask for
a printed version of all forms so that you
see what
you’re
signing.
You are entitled by law to have a printed version of the Consumer Protection Guide if you ask for it.
Inflating your electricity bill savings
When you first look into getting solar and/or storage, you will receive an estimate on how much you might save on your electricity bill after installing your system. Don’t be afraid to ask the solar company how they calculated your potential bill savings. Solar providers are allowed to use a maximum electricity rate escalation of 10% in any calculation, as of 2025.
Who is most vulnerable
Elderly homeowners and those
with l
imited
proficiency
in
English are co
mmon targets of
solar
scams, but anyone can be targeted
If you have f
riends,
family memb
ers or neighbors who
might be vulnerable
reach out to
them to make sure t
hey
are aware of how to avoid
common traps.
Those over 65 have five days to cancel a contract (if
you’re
under 65,
you’ll
have three days).
Customers have the right to receive certain
forms in the language that the sales pitch and any
marketing mat
erial was presented in.
You
have the right
to read the full Consumer Protection Guide before signing a contract.
The CPUC recommends that solar providers give out the
consumer protection guide
during their first contact with potential customers. Do not feel pressured to read this guide while the salesperson waits. Ask them to come back
at a later date
to allow you time to read it
You have the right to a copy of a solar contract and financing agreement in the language in which the salesperson spoke to you.
If a solar provider or salesperson comes to sell you solar panels and speaks to you in a language other than English, they must give you a copy of the contract in that language. Also, if you prefer to read the consumer protection guide in Spanish, Chinese, Korean, Vietnamese, or Tagalog, the solar provider or salesperson must give you this guide in that language.
You have the right
to the Solar Disclosure Document(s) from your solar provider.
By law, a solar provider must provide you with a completed Solar Energy System Disclosure Document created by the Contractors State License Board (CSLB). This includes a one-page document (cover page) that shows you the total costs for the solar energy system, and supporting information that summarizes your financial obligations and provides a standardized bill savings estimate, among other things. You can find the documents here:
Solar Energy System Disclosure Document - Cover Page - English
Solar Energy System Supporting Information - English
More information about these documents, including Spanish versions, are available at:
cslb.ca.gov/consumers/
solar_smart
You have the right to
a 3-day cancellation period after signing a contract.
You have at least three business days to cancel your contract for any reason. If you are 65 years old or older, you have five business days. You may cancel the contract by emailing, mailing, faxing, or delivering a notice to your solar provider by midnight of the third business day after you received a signed, dated copy of the contract. Note that different rules may apply for contracts negotiated at a company’s place of business.
If your solar provider refuses to cancel the contract, report them to the CSLB at 800-321-CSLB (2752) or
cslb.ca.gov/consumers
Before you sign a contract, make sure you do the following:
Have the solar provider
’s CSLB license number.
If you were contacted by a telephone or door-to-door salesperson, ask for their individual
home improvement salesperson
(HIS) registration number.
Check the license and, if applicable, HIS registration numbers
by going t
cslb.ca.gov/OnlineServices/CheckLicenseII/CheckLicense.aspx
or calling 800-321-CSLB (2752). Make sure they are valid and associated with the solar provider.
Check CSLB License and HIS Numbers
The CSLB license must be active and in classification C-46 (Solar Contractor), C-10 (Electrical Contractor), or B (General Building Contractor) in order to be valid. If your solar provider does not have a valid contractor license, do not sign a contract with t
hem and
report them to the CSLB
Understand What You're Paying
Contractors are required by law to provide you with a
Solar Energy System Disclosure form
and
Supporting Information form
(find more information, including Spanish versions, at
cslb.ca.gov/Consumers/Solar_Requirements.aspx
). These forms are designed to provide a clear breakdown of how much you are paying for your solar and/or battery system, both on a total and monthly basis (if applicable). It also includes a standardized estimate of how much you may expect to save on your electricity bill by installing solar.
Review the forms and keep them handy. You can ask your solar provider to walk through them with you. The forms contain information including:
Total system cost
Monthly costs
Interest rates or escalators that may affect your monthly payments
A standardized bill savings estimate
The inputs/assumptions about your solar system your provider used to calculate the bill savings estimate
Questions to ask your solar provider to better understand your solar financing:
Is there a down payment?
How much will I pay per month? When will these payments increase and by how much?
Is this standardized bill savings estimate significantly different from other bill savings estimates you (solar provider) might have given me? If so, can you explain why?
If I sell my home, what are my options and what do I need to do? (Ask your solar provider, lender, or PACE program administrator to show you where in the contract it describes what happens when you sell your home.)
If you are considering PACE financing, also ask:
How much will I pay once or twice a year with my property taxes or monthly with my mortgage?
How many years will I pay this amount?
Before You Get Solar: Things to Do
Before you consider getting solar at your home, ask yourself these questions first.
1. Have I made my home energy efficient first?
Reducing your energy use can reduce the size of the solar system you need, potentially saving you thousands of dollars. Visit
the
CPUC's
Energy Effi
ciency pag
to see a list of energy efficiency programs with your electricity provider, and/or contact your electricity provider for
energy effi
ciency tips and advice on how to get a home energy assessment. You may also want to ask your
utility
or electricity provider
about residential demand response programs.
2. Do I qualify for low-income solar programs?
Consider if you might qualify for a
low-income solar program
. There are residential solar and community solar programs available for qualifying low-income PG&E, SCE, and SDG&E customers that could save you money with no financial contribution.
3. Is my roof suitable for rooftop solar?
Does my roof receive a good amount of sunlight or is it mostly shaded? What direction does the roof face? Roofs that are mostly shaded or face due north are not good candidates for solar. If you plan to replace your roof soon, you should replace it before installing a rooftop solar system.
If your roof is heavily shaded or
isn’t
in
great condition
, or if you are a renter, community solar programs
could be a good fit for you. With community solar, you receive 50-100 percent of your electricity from solar projects
located
across California. Community solar programs vary and may increase your electricity bill or provide an electricity bill savings. Contact your electricity provider for more information.
Find Solar Providers that Serve Your Neighborhood
There are several ways
to
find a solar
and/or storage installer for the job you want to get done.
Explore some or
all of
these options.
Find a licensed contractor
through the CSLB
Go to
cslb
.ca.gov
and click on the “Find My Licensed Contractor” search
in the middle of the
page.
Enter your city and one of the following license classifications: C-46 (Solar Contractor), C-10 (Electrical Contractor), or B (General Building Contractor).
Word of mouth.
Ask friends and neighbors who had solar installed at least a year ago if they re
comm
end a solar provider and why.
Online review
sites
can also help you find
a reputable
installer in your
area.
Find a local contractor through
DGStats
Go to
californiadgstats
.ca.gov
, a government-funded website, to enter your
ZIP
code and see a list of solar providers and recent installation costs. Note that these costs are not verified by the government.
Check to see if your county has a County Contractors Association with licensed solar providers.
Narrow Down the List to Qualified Solar Providers
Make sure solar providers you consider have a valid license from the CSLB. It is illegal for solar providers and their
installer
s to conduct business without a license.
Go to the Contractors State License Board (CSLB) website at
cslb
.ca.gov/consumers
or call 800-321-CSLB (2752) to see if the
solar provider
and
installer
licenses are active and valid. The licenses must be in the classification C-46 (Solar Contractor), C-10 (Electrical Contractor), or B (General Building Contractor).
Find out how long the company has been in business and how many installations they have done.
Check out trusted customer review websites online. Since some websites may not be neutral, check a few different websites to make sure reviews are consistent.
It’s
a good sign if companies employ installers certified by the North American Board of Certified Energy Practitioners (NABCEP), a high standard in the industry.
Get Bids From At Least 3 Qualified Solar
Providers,
Compare Bids, and
Ask Questions
After you narrow down the list of solar providers, ask for a bid or price quote.
Look up how to compare solar quotes
online and
compare the bids you have obtained.
Note that the cheapest bid is not necessarily the best
option
for you.
A very low
bid may
indicate
that a
solar provider
is trying to cut corners.
Pay attention to sizing.
Solar providers may encourage you t
o install a system that produces more energy than you will use
. Consider getting quotes for different
ly sized system
to understand
how
they
will affect
your finances.
NBT customers are limited to oversizing their solar systems
by no more than
50 percent of the past 12 months of their electricity usage.
To install an oversized system
you will need to
submit
an attestation
stating
you expect to increase your usage in the 12 months
after you interconnect
Ask questions
up front.
A qualified company will be happy to answer
all your questions
See a
list of
sample
questions
you can ask in the next section
Questions to Ask a Solar Provider
Before You Sign a Contract
Company Background
What is your company’s contractor license number from the Contractors State License Board (CSLB)? What is your
installer
’s contractor license number?
Is the salesperson an employee of your company?
Will you subcontract with another company to install the solar system? If so, what is their CSLB contractor license number?
How long have you been in busines
and how many systems have you installed?
Can you provide me with three customer references to call or visit? These customers should have solar installed for at least a year.
Design & Roof
Is my roof
a good candidate
for solar? Why?
Does my roof need to be replaced before installing solar panels?
If yes, how much will that cost, who will do it, what is their license number, and is there a roof warranty?
Why did you choose this specific design and size for the solar system you are re
comm
ending to me?
Note that a system sized to cover
all of
your electricity needs
isn’t
necessarily the best investment. Typically, a system is sized to around
80-85 percent
of your electricity use from the previous year.
What steps will yo
u tak
e to ensure my roof
won’t
leak?
Roughly how
much will it cost to remove and re-install the panels if I need to replace my roof i
n the fut
ure, including inspection fees?
Warranties & Performance of Solar System
Are there warranties for the panels and inverters?
If yes, how long do they last and
whom do I
contact to replace these components?
If equipment such as the inverter fails after the warranty period, how much will it cost to replace?
Are there warranties for labor/construction?
Are repairs and maintenance included in the contract? If yes, who should I contact for repairs?
What is your typical response time via phone or email?
Will I be able to
monitor
the performance of the system once
it’s
installed? If so, how?
Does the solar provider offer a minimum energy guarantee (
comm
on with leases and power purchase agreements)?
If yes, how will I
be compensated if the
system does not produce as much energy as promised
in the contract?
Is there an insurance policy that comes with the solar system, or do I need to take out
additional
homeowner’s insurance? Note that this is especially important if you live in fire-prone areas.
What are my obligations in the contract if my solar system stops working due to a disaster like an earthquake or a fire?
Is my system eligible to receive Renewable Energy
Credit
s (RECs)?
Who has the right to claim the
se
credit
(See
the
How Electricity Bill Savings Work
section
below
Electricity Bill Savings Estimates
Please beware of a solar provider who tells you solar is free – it is not.
Will you explain to me why an electricity bill savings estimate is not a guarantee?
What electricity provider bill escalation rate is assumed in your electricity bill savings estimate?
Note that the CPUC has capped this escalation rate
assumption
at
10
percent per year.
Even though I will continue to pay electricity bills after going solar, I can receive solar bill credits on my electricity bill. How does that work?
Is there
an option
to pay my electricity bills monthly instead of annually, so the costs are more even throughout the year? How do I sign up?
What electricity rate plan do you re
comm
end I switch to for solar, and why?
How long will I be on that rate plan, and how can I compare or change rate
plan
on
my electricity provider’s website?
Note that each electricity provider has a rate plan comparison tool or page on its website.
Does my electricity provider offer special rates for solar customers?
Impacts On Future Sale o
Your Home
Will a solar system make it more difficult for me to sell my home or refinance?
For leases, power purchase agreements (PPA), and PACE-financed systems:
What happens if the home buyer
doesn’t
want the solar system or
doesn’t
qualify to take on my lease, PPA, or PACE
financed system?
Are there fees if I need to
terminate
the contract early to sell my house?
Are there fees for transferring the lease, PPA, or PACE financing to a new homeowner?
Timeline
When do you propose to start and finish installing solar on my roof?
After installation is complete,
roughly how
long will it take for my electricity provider to send me written approval to turn my system on?
What situations would allow me to be released from a contract?
Financing Your Solar System
The most common solar financing options are:
Purchase
of a solar system with a solar
loan or cash
With a purchase, you own the system.
Lease
of a solar system
With a lease
the
solar provider
owns the system and “rents” it to you for a scheduled monthly payment over a set number of years.
Power purchase agreements (PPA)
In a PPA,
the
solar provider
owns the solar system and sells you the electricity it generates for a certain price over a set number of years.
An escalator
would
make this price go up over time.
Property Assessed Clean Energy (PACE) financing
PACE covers
the upfront costs of a solar system, which you
would then
pay back on your property tax bill. With PACE financing, you own the system.
Pros
Cons
Purchase with Cash or Loan
Typicall
greater return on investment.
If you use a loan, little or no upfront costs.
May increase value of
You are typically responsible for repairs and maintenance. This may involve contacting different manufacturers, who could go out of business during the
10-
to
20
year
component
lifecycles.
Some solar loans place a lien on your property. In those cases, if you do not make your payments, this could result in foreclosure or make it more difficult to sell your home or refinance your mortgage.
Lease
and PPA
Little or no upfront costs.
Solar p
rovider
is responsible for
all monit
oring, maintena
nce, and repairs.
Minimum energy production often guaranteed.
Selling home may be more complicated than with a purchased system. Options typically
are:
the new owner must agree to take on the lease/agreement, you continue making payments, or you buy out the lease/agreement, which could be thousands of dollars.
Solar p
rovider could go out of business during the contract period.
PACE Financing
Little or no upfront costs.
May have a longer repayment period than typical home improvement loan, which may be preferable.
PACE financing results in a first-priority lien on your property. Your bank may require you to pay off the PACE assessment prior to refinancing.
If you do not make your PACE payments, this could result in foreclosure or make it more difficult to sell your home or refinance your mortgage.
You are typi
cally responsible for repairs and maintenance. This may involve contacting different manufacturers, who could go out of business during the
10- to 20-year
component
lifecycles.
You can
purchase
a solar system from a
solar provider
or
manufacturer
with a
traditional loan
solar loan
or cash. In this approach, you own the installed system. Types of loans include:
Secured loans:
these
require
an asset that will serve as collateral for the loan – often that asset is your solar system. A secured loan is often preferred because it typically has lower interest rates.
Unsecured loans:
these do not
require
any collateral,
similar to
a credit card.
Many solar providers work with lenders that offer solar loans, but you should check with banks and credit unions as well. Compare offers to make sure you are being offered a reasonable interest rate.
Unless you
purchase
a maintenance plan or your system comes with one, you will
be responsible for
any maintenance and repairs. Make sure you save the equipment warranties, particularly for the inverter, which may need to be replaced sooner than other equipment. If you sell your home, look for real estate agents and appraisers with experience selling homes with solar. You may include the system in the house sale just like any other major home
improvement
Questions to Ask a Lender About the Purchase of a Solar System with a Loan:
What is the total cost of the loan over the entire course of the contract?
How much will I pay up front, how much over time, and for how long?
What is my interest rate?
What is my annual percentage rate (“APR”)?
Whom do I contact if I have questions about my loan payments?
Will a solar loan make it more difficult for me to sell or refinance my home?
Will I need to buy out my loan? Who
do I contact
if I do
Leases:
With a lease, the solar provider owns the system on your property and “rents” it to you for a set
period of time
. A solar provider will install the solar system on your home, and you will make scheduled monthly payments in exchange for all the electricity the system produces. A typical
ease contract period is 20-25 years.
Power Purchase Agreements (PPAs):
In a power purchase agreement (PPA), the solar provider owns the system on your property and sells you the electricity it generates. PPAs are
similar to
eases, except that instead of making a fixed monthly payment for the system, you typically pay for all the power the solar system generates (
at
a fixed per-kilowatt-hour rate). The contract will specify the kilowatt-hour rate you pay in the first year and every year after that. This rate should
generally be
lower than your current electricity rate. A typical PPA contract period is 20-25 years.
If you sell your house before the lease or PPA contract is over, you will have to pay the solar provider the
remainder
of the value of the
ease or PPA or transfer the contract to the new property owner. Make sure you understand the specific contract terms, since buying out a
ease or PPA can cost thousands of dollars.
Payments for leases or PPAs will typically increase by a specified amount every year based on an “escalation clause” or “escalator.” Escalators are typically in the range of a 1 percent to 3 percent increase above the rate you paid in the previous year. Be cautious of entering into a contract with an escalator higher than that.
There may be
different ways
to arrange leases and PPAs, such as paying more up front to reduce your monthly payments.
Questions to Ask a Lender or Solar Provider About a Lease or PPA
What is the total cost of the solar system or solar energy over the entire course of the contract?
How much will I pay up front, how much over time, and for how long?
Will my payments increase over time? How much will they
increase a
nd how
frequently
Is there an option to make a down payment to reduce my monthly payments (for a
ease) or
ilowatt-hour rate (for a PPA)?
What happens if I wish to end the
ease or PPA early?
If I end my agreement early, will I owe a balloon payment and/or an early termination fee? If so,
how much will I owe?
Will a
ease or PPA make it more difficult for me to sell or refinance my home?
Who will
be responsible for
monitoring, operations, and maintenance of the solar system?
Property Assessed Clean Energy (PACE) is a financing
option
that is available in some areas of California
. In most places, it is sold through PACE solicitors and solicitor agents who
are required to
be enrolled with a PACE program administrator.
In a PACE financing arrangement, a
PACE program administrator
finances the upfront costs of a solar system, which you then pay through an
increase
on your property tax bill. With PACE financing, you own the solar system.
Be aware that PACE is not a free government program.
You should read and review the terms carefully, and if necessary, consult a tax professional or attorney.
Here are some things to keep in mind if you're getting PACE financing:
PACE financing lasts for a fixed term, typically around 10-30 years
, and it is attached to your house. If you sell your house before you have fully paid the PACE assessment, the buyer may require you to pay off the remaining balance of the assessment, which could be thousands of dollars. Some mortgage lenders will not loan money to buyers to
purchase
properties with PACE liens unless the full assessment is paid.
PACE assessments are typically due once or twice a year, in large lump sums with your property taxes
, unlike leases and power purchase agreements that require smaller monthly payments. Given this unique arrangement,
it’s
important to understand how much you will owe and when, so that you can set aside enough money throughout the year to cover the amount.
If your house is mortgaged and you typically pay your taxes with an escrow or impound account, your
mortgage company may increase the amount you pay monthly
to cover the
anticipated
increase to your property tax bill. Discuss how PACE will affect your monthly mortgage payment before you sign an agreement.
Be aware that if you
fail to
make your PACE payments included with your property taxes or mortgage, your home could be put in foreclosure.
Questions to Ask a PACE Program Administrator About
a PACE-Financed System:
Are you licensed as a PACE Program Administrator
Check
if they are
licensed
at
PACE Program Administrators - DFPI
. There are four organizations licensed as PACE program administrators
as of January 2026
Is the PACE solicitor or PACE solicitor agent I talked to enrolled with you?
Check the
solicitor’s
enrollment with the PACE program administrator at
Enrolled PACE Solicitors Search - DFPI
What is the total cost of the financing over the entire course of the contract?
How much will I owe for PACE financing when I pay my mortgage or property taxes?
How many times a year will I owe this PACE payment?
What happens if I want to sell or refinance my home? Will selling or refinancing be more difficult with PACE
financing
Is there anything I have to do with the mortgage company?
What are the penalties for
failing to pay
the assessment on time?
Who
o I contact if I have problems making my PACE payments?
Having trouble with a PACE financer?
Go to the bottom of this page for more resources, including legal support resources, for issues with PACE financing. You can also visit the
Department of Financial Protection and Innovation to file a complaint
Electricity bill savings estimates are educated guesses about how much you could save with rooftop solar. They are based on several uncertain factors.
Remember: electricity bill savings estimates do not guarantee savings.
Here are some reasons why
it’s
possible that your savings could be lower than the estimate:
Your future energy
use is uncertain.
For example, if your family grows, you buy an electric vehicle, or you decide to turn up your air conditioning in the summer, your energy
use will go up.
Electricity prices and rates can change over time.
Electricity bill savings estimates typically assume they will escalate, or rise, by a certain percentage each year (the CPUC has capped the assumed escalation rate at
10
percent for these estimates). Also, your electricity provider may require you to switch to a different rate plan in the future, which could change how much you save.
Your solar system might perform slightly worse than the estimate assumed.
For example, if your area is unusually dusty, the system could generate slightly less energy than estimated.
If you sell your home, you could incur
additional
costs.
For example, if a buyer
doesn’t
want to take on a
ease or PPA, you might have to buy out the contract, which could be thousands of dollars.
Before you sign a contract, ask yourself:
if the savings end up being lower than the estimated monthly or yearly savings, does getting rooftop solar still make sense to me?
Be aware:
Some unscrupulous solar providers may inflate your bill savings to convince you to install solar. If you're curious about how your solar provider calculated your bill savings estimate, ask what inputs they used. Solar providers are only allowed to use a maximum of 10% for yearly escalation of electricity rates, as of 2025.
How Electricity Bill Savings Work
Electric Bill Savings Under the Solar Billing Plan (Net Billing Tariff)
If you install solar,
the majority of your electric bill savings will come from using the solar energy in your home, reducing the electricity you must buy from your provider.
A minor
dditional
amount of bill savings will come from your provider’s Solar Billing Plan, which provides financial credits on your bill when your solar system sends any extra electricity (unused in your home) to the electric grid. The Solar Billing Plan may also be referred to as the Net Billing Tariff, or colloquially, NEM 3. If you are the original PG&E, SCE, or SDG&E customer who installed solar on your roof, you will have access to the Solar Billing Plan for at least 9 years from the time your solar system starts
perating
Since the sun
isn’t
always shining, most solar customers also rely on electricity from the electric grid.
Pairing a battery with your solar system allows you to store excess solar energy from daytime hours for use in the evening.
Your monthly electric bill will summarize how much electricity your home bought from and sent to the electric grid, and the resulting overall charge or credit to your account. You will pay any charges that
remain
after the application of your solar credits (including any from previous months) monthly. If you have excess solar bill credits, they will roll over to the next month.
You will also see a “true-up” bill once a year. If you send more electricity to the grid than you buy in a year, your provider will subtract any bill credits you already received for that excess
energy, and
then provide compensation at a different rate for the excess energy.
How to maximize the value of your investment in solar
If you're trying to increase the amount of money you can save on your electricity bill by going solar, consider these strategies.
Set your battery to maximize bill savings.
As a Solar Billing Plan customer, you will go on a time-of-use rate plan with
high prices
for the energy you buy from the electric grid during “peak” evening hours
If you are installing a battery, consider asking your installer to set your system to store excess energy during “off-peak” hours, and to send energy back to the grid during “peak” hours. Keep in mind the electricity rates in each plan, and which plans are allowed for use with the Solar Billing Plan, are subject to change; ask your utility for details.
Get a correctly sized system.
When
you’re
shopping for solar, keep in mind that it is
generally not
in your financial interest to install a solar system that produces more energy than you will use over the course of a year. The monthly bill credits and annual true-up compensation may not make up for the cost of installing a bigger solar system than what your household will use. Consider getting a bid for a smaller system than you need to see how the price and projected bill savings change.
Time your energy usage.
You can increase your savings by reducing energy usage during peak hours and shifting it to off-peak hours
ou may
also
be able to reduce your total energy costs by replacing gas appliances such as cars, furnaces, water heaters, stoves, and clothes dryers with electric ones that can be powered by solar. Keep in mind these replacements will cause an increase in electricity use when designing your solar system.
Getting Environmental Credit for Going Green
When a residential solar system produces electricity, the system is eligible to receive Renewable Energy Certificates
RECs
If you
purchase
your solar system, you own any RECs created.
If you enter a lease or PPA,
ask your solar provider who will own the RECs, and check the contract fine print.
olar system owners may sell the RECs they generate
. System owners would need to qualify for
the Western Renewable Energy Generation Information System (WREGIS), which
issues and tracks
RECs
isit the
WREGIS
website for more information
Keep in mind that for many residential single-family installations, the compensation earned through RECs will generally not offset the fees involved in this process.
Combining Solar with Storage
When you install battery storage with your solar system, you can store excess solar electricity produced by your panels for use in the evening when the sun goes down. The software that comes with battery storage automatically
determines
whether to store the extra energy or export it to the grid to maximize cost savings. Battery storage can also provide limited back-up power.
The state-funded Self-Generation Incentive Program (SGIP) provides financial incentives to install storage. See
www.
cpuc.ca.gov/
sgip
for more details
on SGIP.
Understanding Paperwork and Resources
If you still have questions about any aspect of going solar, find resources in the list below where you can read or watch
additional
information, or call someone to
advise
you.
Electricity Provider Solar Programs
Pacific Gas and Electric (PG&E)
PG&E solar customer service: 877-743-4112
PG&E clean energy:
Getting Started with Solar
Southern California Edison (SCE)
SCE solar phone number: 866-600-6290
SCE solar power at home:
Generating Electricity at Home: Solar Basics | SCE
San Diego Gas & Electric (SDG&E)
SDG&E solar phone number: 800-411-SDGE (7343)
SDG&E get started with solar:
Considering Solar | San Diego Gas & Electric
If another electricity provider supplies you with electricity, call them or check their website for details on their solar programs.
Low-Income Solar Programs
DAC-SASH program: 866-921-4696 and
GRID Alternatives Solar
Community Solar Green Tariff program and DAC Green Tariff program:
Solar in Disadvantaged Communities
SGIP Residential Solar and Storage Equity program:
SGIP Program
If you are not a PG&E, SCE, or SDG&E customer, contact your electricity provider
for low-income solar options.
Contractors State License Board (CSLB)
CSLB 24-hour licensing and consumer information: 800-321-CSLB (2752)
Check a
contractor license or home improvement salesperson registration
CSLB Solar Smart Guide
Solar Energy System Disclosure Document Cover Page
and
Solar Energy System Supporting Information
Department of
Financial Protection and Innovation (DFPI)
PACE financing information: FAQs and Filing a Complaint
Financial services: 213-576-7690;
pacehelp@
fpi
.ca.gov
Enrolled PACE Solicitor Agents Search
Filing a complaint against a PACE provider
Solar Bills and Solar Billing Plan
PG&E: Understanding Your Solar Bill
SCE: Understanding Solar Billing Plan
SDG&E: Solar Billing Plan
CPUC NEM and Net Billing
Solar Financing Guides
Clean Energy States Alliance (CESA)
homeowner's guide to solar financing
CESA
una
guía
práctica
de
financiación
solar para
dueños
de casa (
en
CESA/George Washington University Rooftop Solar Financing 101
Other Solar Guides
Solar Energy Industries Association (SEIA) Residential Consumer Guide to Solar Power (updated July 2025)
SEIA Smart Solar Guide: Getting Started, Smart Solar Tips
Interstate Renewable Energy Council (IREC) Be Solar Smart Consumer Checklist
You'll receive the following forms as part of your solar purchase. If you haven't received any of these forms, contact your solar provider. If they refuse or continue to fail to provide you with any of these forms,
report them to the CSLB
Solar Energy System Disclosure Document - Cover Page and Supporting Information
The
Solar E
ergy System Disclosure Documents
from the Contractors State License Board
contains
key financial information
and rights
regarding
your contract
This includes the total cost of your system, a one-year bill savings
estimate
, and
your three-day right to cancel (five if you are over 65 years old).
There are two forms you should receive:
Solar Energy System Disclosure Document (cover page)
Solar Energy System Supporting Information
See Spanish versions at
www.
cslb.ca.gov/consumers/
solar_smart
Solar Contract
The solar contract is the legally binding document between you and the
solar provider
. Make sure to
read it carefully.
Make sure everything you were promised is written in the contract.
By law, any contract for solar installation must include:
Contractor information, including business address and license numbers
Description of the project, including equipment installed and materials used
Contract price, plus finance charge and/or down payment if applicable
Approximate start and end date of the contract term
Notice of a 3-day right to cancel the contract (with limited exceptions)
Ask the
solar provider
what situations would allow you to be released from the contract. For example, if your
solar provider
discovers on a site visit that your roof is shaded in a way that
wasn’t
expected, that could cancel the contract.
Financial Paperwork
If you are
purchasing
a system with a solar loan, you will be asked to sign a separate financing agreement. The
lender
will provide you with this separate agreement.
If you are
purchasing
a system with PACE financing, you must sign: (1) a Financing Application and, (2) a Financing Agreement.
Before you sign the Financing Application, read it carefully to make sure all the information is correct, including your contact information, your income, and the cost of the solar energy system.
The separate financing agreement may be provided by the
solar provider
, the PACE program administrator, or a financing
institution. If you are using PACE financing, it should include a PACE Financing Estimate and Disclosure form showing the solar system’s total cost. A link to a blank version of this document is available at
www.
cslb.ca.gov/consumers/
solar_smart
Make sure everything you were promised is written into any financing agreement. For example, many answers to the questions
in the “Compare Your Financing Options” section of this webpage
should be referenced in the financing agreement.
Additional Solar Resources
CPUC Procedural Background
Decision
(D.)16-01-044
directed CPUC Energy Division staff, in collaboration with stakeholders, to consider net energy metering (NEM) consumer protection measures.  In September 2018, the CPUC adopted Decision
(D.)18-09-044
, which establishes a process for creating a solar information packet for consumers. The solar information packet that was created through this process is now called the “California Solar Consumer Protection Guide.”  In February 2020, the CPUC adopted Decision
(D.)20-02-011
which modifies Decision (D.)18-09-044.
D.18-09-044 requires that solar providers upload three documents before interconnecting a residential solar customer to the electric grid in PG&E, SCE, and SDG&E territories. These documents include: signed pages of the CPUC solar information packet, the solar installation contract, and the
Contractors State License Board (CSLB) Solar Disclosure Document
D.18-09-44 authorizes an evaluation of the NEM successor tariff (NEM 2.0).  As part of this evaluation, focus groups were conducted about the California Solar Consumer Protection Guide,
version 2
.  The focus group methods and findings are presented in this
Solar Consumer Protection Guide Research Findings Memo
.  They are also summarized in these
slides
from the public workshop about the study.
The CPUC’s Energy Division mailed the following letters regarding the solar information packet to service lists R.14-07-002 and R.12-11-005:
October 29, 2020:
Energy Division Letter
on an extension until January 1, 2021 of the requirement to use the September 2020 version of the Solar Consumer Protection Guide, in compliance with D.20-02-011 OP3.
September 29, 2020:
Energy Division Letter
on an extension until October 30, 2020 of the requirement to use the September 2020 version of the Solar Consumer Protection Guide, and an additional extension until January 4, 2021 for SDG&E to reconfigure its interconnection portal in compliance with D.20-02-011 OP3 and OP4.
June 5, 2020:
Energy Division Letter
on an extension until September 30, 2020 to reconfigure interconnection portals in compliance with D.20-02-011 OP3 & OP4
January 15, 2020:
Energy Division Letter
on additional extension for wet signature requirement.
September 27, 2019:
Energy Division Letter
on 120-day extension for wet signature requirement.
August 30, 2019:
Energy Division Letter
on a time extension for release of the translated versions of the solar information packet.
June 14, 2019:
Energy Division Letter
on a time extension for release of the English-language version of solar information packet.
PACE Financing and Legal Assistance For Solar Programs
Free legal assistance is now available for customers experiencing legal or financing challenges with Property Assessed Clean Energy (PACE) financing.  PACE is commonly used to finance rooftop solar projects and energy efficiency upgrades. If customers believe their PACE contracts are unfair or that their contractors misrepresented this program or failed to perform the required work, those consumers can obtain legal advice regarding their rights and potential remedies.
For legal assistance, please contact the following law firms:
Housing & Economic Rights Advocates (HERA) - Statewide -
Public Counsel - Los Angeles County -
Legal Aid Society of San Diego – San Diego County -
Inland Counties Legal Services – San Bernardino and Riverside Counties -
Bay Area Legal Aid – Contra Costa, Marin, Napa, San Francisco, San Mateo, and Santa Clara Counties -
Watsonville Law Center – Santa Cruz, Monterey, and San Benito Counties -
Once you are able to establish contact with one of the firms above, an attorney will contact you to discuss your rights and potential remedies with you.
You can also file a complaint with the
California Department of Financial Protection & Innovation
, which oversees PACE program administrators. And as appropriate, you should consider filing a complaint with the
Contractors State Licensing Board
, which oversees contractor issues.
Solar Complaints Report
The Contractors State Licensing Board (CSLB) compiles and publishes an annual report on complaints and consumer questions received regarding solar energy systems companies and solar contractors. This report can be found on the
CSLB’s Solar Smart webpage
under “Solar Complaints Report.”
California Solar Consumer Protection Guide
CSLB Disclosure Documents
Low Income Solar Programs
Related Topics
Consumer Protection
Related Divisions
Energy