Going Solar in Berkeley, CA
Everything you need to know about solar panels, battery storage, permits, and incentives for Berkeley homeowners.
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Berkeley Solar Billing Plan (NEM 3.0)
Since April 2023, new solar customers in Berkeley are enrolled under California's Net Billing Tariff (NEM 3.0). Here's how it works:
Self-Consumption
Energy you generate and use immediately offsets your bill at the full retail rate ($0.35-$0.55/kWh depending on time of use). This is the most valuable use of your solar energy.
Grid Exports
Excess energy exported to the grid earns credits at the Avoided Cost Calculator rate, typically $0.04-$0.08/kWh. Much lower than retail, making batteries more attractive.
Ava Community Energy Bonus
Berkeley residents on Ava Community Energy receive an additional export bonus (approximately $0.02/kWh) for solar exports during peak hours (3-8 PM).
Battery Strategy
Under NEM 3.0, batteries let you store daytime solar to use during peak evening hours, avoiding high retail rates and reducing low-value exports.
Berkeley Solar Permitting Checklist
Site Assessment
Installer evaluates your roof condition, shading, electrical panel, and structural capacity.
System Design
Engineer designs the system layout, including panel placement, inverter sizing, and electrical plans.
Permit Application
Submit building permit through Berkeley's online Solar Permit Portal with structural and electrical plans.
Permit Review
City reviews plans (1-2 business days for expedited solar permits). May request revisions.
Installation
Licensed contractor installs panels, inverter, and wiring. Typically 1-3 days for residential systems.
City Inspection
Berkeley building inspector verifies installation meets code requirements.
Utility Interconnection
PG&E reviews and approves grid connection. Apply for NEM 3.0 net billing agreement.
Permission to Operate
PG&E grants PTO. Your system can now export to the grid and earn credits.
Pro Tip: Berkeley's expedited solar permit review typically takes just 1-2 business days. Your installer usually handles the entire permitting process.
Incentives & Rebates
Federal Investment Tax Credit (ITC) - 30%
The federal solar tax credit allows you to deduct 30% of your total solar installation cost from your federal income taxes. This applies to both solar panels and battery storage systems installed through 2032. The credit steps down to 26% in 2033 and 22% in 2034.
SGIP Battery Rebate
California's Self-Generation Incentive Program (SGIP) provides rebates for battery storage systems. General market rebates are approximately $150/kWh, while equity and equity resiliency budgets offer up to $1,000/kWh for qualifying low-income households or those in high fire-risk zones.
Property Tax Exemption
Under California law, the added home value from a solar energy system is exempt from property tax reassessment through 2025. This means your solar panels won't increase your property tax bill.
CARE/FERA Discount Programs
Qualifying low-income households receive reduced electricity rates through CARE (30-35% discount) or FERA (18% discount). These programs can be combined with solar to further reduce energy costs.
Frequently Asked Questions
How much does solar cost in Berkeley?
The average residential solar installation in Berkeley costs $2.80-$3.40 per watt before incentives. A typical 6 kW system runs $16,800-$20,400 before the 30% federal tax credit, bringing the net cost to roughly $11,760-$14,280.
What incentives are available for Berkeley homeowners?
Berkeley residents can take advantage of the 30% federal Investment Tax Credit (ITC), Ava Community Energy export bonuses, SGIP battery rebates (up to $1,000/kWh for qualifying households), and potential property tax exemptions for solar equipment under California law.
What is NEM 3.0 and how does it affect my savings?
NEM 3.0 (Net Billing Tariff) replaced NEM 2.0 in April 2023. Under NEM 3.0, export credits are lower (around $0.05/kWh vs. retail rate), making battery storage and self-consumption more important for maximizing savings. Berkeley homeowners on Ava Community Energy can receive additional export bonuses.
Do I need a permit for solar panels in Berkeley?
Yes. Berkeley requires a building permit for all solar installations. The city has streamlined the process with an online Solar Permit Portal. Most residential systems are processed within 1-2 business days through the expedited review track.
Is battery storage worth it in Berkeley?
Battery storage is increasingly valuable under NEM 3.0 because it lets you store solar energy and use it during expensive peak hours (4-9 PM) instead of exporting at low credit rates. Batteries also provide backup power during PSPS events and grid outages.
What is Ava Community Energy?
Ava Community Energy (formerly East Bay Community Energy) is Berkeley's Community Choice Aggregation provider. They source cleaner electricity and offer export bonuses for solar customers, providing additional savings beyond standard PG&E rates.
How long does solar installation take in Berkeley?
The physical installation typically takes 1-3 days. However, the full process from contract signing to Permission to Operate (PTO) usually takes 8-16 weeks, including permit review (1-2 weeks), installation (1-3 days), city inspection (1-2 weeks), and PG&E interconnection (4-8 weeks).
What happens during a power outage if I have solar?
Solar panels alone will shut off during a grid outage for safety reasons (anti-islanding). To keep power during outages, you need a battery storage system with backup capability. A typical 13.5 kWh battery can power essential loads for 8-12 hours.
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