Part 1: Rebates
The pace of change in the solar industry can be breathtaking. Just when you have your business model dialed in and your team trained up — BAM! — everything changes.
At Allterra Solar, we’ve successfully navigated years of technology shifts, policy rewrites, and market disruption. And what’s on the other side of those changes?
Batteries.
Battery storage is now central to the future of solar in California. And while batteries are a major investment, rebate programs can significantly reduce the upfront cost — if you qualify.
Here’s what you need to know.
Battery Rebates: In the Beginning
Allterra Solar has been installing batteries on the Central Coast for over 8 years. During that time, we’ve seen rebate programs come and go.
-
-
- SGIP (Self-Generation Incentive Program) is a State funded program that offered generous rebates to early battery adopters.
- SGIP Equity Resiliency Rebate paid up to $26,000 for battery systems in designated fire zones.
-
These programs jumpstarted battery adoption in Santa Cruz County, Monterey County, and other high-risk areas.
Today’s programs are more targeted — and more complex.
Current Battery Rebates in the Central Coast
The three main rebates currently available come from:
- Central Coast Community Energy (3CE)
- PG&E Permanent Battery Storage Rebate (PBSR)
- SGIP (income-qualified)
Each lowers upfront costs — but each comes with tradeoffs.
1. 3CE Battery Rebate
For most homeowners in our service territory, this is the most accessible rebate.
Who It’s For
3CE aims to reduce grid demand during peak hours (4 PM–9 PM) by incentivizing residential customers to install batteries and use stored energy instead of grid power during those times.
Eligibility
- Must be a 3CE residential customer
- Must install a battery system
- Must be on the Solar Billing Plan (NEM-3)
Rebate Amount
- $300/kWh for customers already on NEM-3
- $500/kWh for customers who switch from NEM-2 to NEM-3
- Systems from 5 kWh to 26 kWh qualify
- Total rebate range: approximately $1,500–$13,000
3CE Battery Rebate Amounts
The Catch
- Battery must discharge during 4 PM–9 PM peak hours
- Must enroll in load-shift tracking through Texture (third-party monitoring)
For most customers, discharging during peak hours actually improves savings — so this requirement is usually not a drawback
Should NEM-2 Customers Switch to Get 3CE’s Bigger Rebate?
Switching from NEM-2 to NEM-3 unlocks the higher $500/kWh incentive — but it’s not always the right move.
Here’s when it may make sense:
✔ Your NEM-2 Grandfathering Is Ending
NEM-2 lasts 20 years. If you installed solar around 2011, your agreement is nearing expiration. In that case, capturing a large rebate while transitioning to battery storage can be smart.
✔ You Need Backup Power and Upfront Cost Is the Barrier
If outages are disrupting your home and the rebate makes the system affordable, the switch may be worth it.
✔ Your Solar System Is Undersized
If your NEM-2 system only offsets ~70% of usage and you still have a significant true-up bill, converting to NEM-3 with a properly sized battery may produce similar annual costs.
When You Should NOT Switch
If your NEM-2 system is saving you $5,000 per year, giving up that net energy metering structure for a rebate may not pencil out.
In many cases, keeping NEM-2 and self-funding the battery is financially stronger long term.
Each scenario needs to be evaluated on their own, and Allterra Solar can help.
2. PG&E Permanent Battery Storage Rebate (PBSR)
This is a location-based rebate for high fire-risk areas.
Target Customer
Homeowners in designated high fire-threat districts where PG&E frequently performs Public Safety Power Shutoffs.
Rebate Amount
- Flat $7,500
Eligibility
PG&E pre-qualifies homes based on wildfire risk maps.
(As of February 13, 2026, only 537 rebates remain.)
Downsides
- Very limited eligibility
- Requires enrollment in a demand response program
- PG&E can draw power from your battery during grid events
The demand response requirement has been a pain point for some customers.
3. SGIP (Income-Qualified Program)
SGIP still exists — but today it primarily serves low-income households.
Target Customer
- Households at or below 80% of Area Median Income
- Some disadvantaged or high fire-threat communities
For context:
Santa Cruz County median income is approximately $111,000, meaning eligibility typically requires household income below $88,800.
Rebate Amount
- $150–$1,100 per kWh
- Roughly $2,000–$15,000 depending on system size
Downsides
- Strict income requirements
- Limited funding
- Demand response participation required
For most homeowners, SGIP is no longer broadly accessible.
The Big Picture
Battery rebates still exist — but they are:
- More targeted
- More conditional
- More complex
The largest rebate today often requires:
- Switching from NEM-2
- Participating in demand response
- Allowing third-party monitoring
There is no one-size-fits-all answer. The right move depends on:
- Your NEM status
- Your annual savings
- Outage risk
- Income qualification
- Long-term goals
Ready to Talk About Batteries?
If you’re considering adding a battery to your home — or just want to understand more about your rebate eligibility — we’re here to help.
Schedule a no-pressure consultation with Allterra Solar to:
- See how solar plus energy storage will save you money while providing clean, reliable backup power
- Understand which local and state incentives you may qualify for in Santa Cruz County, Scotts Valley, Monterey, Carmel, Salinas and other Central Coast cities.
- Get expert guidance from a trusted Central Coast solar and battery installer
👉 Contact Allterra Solar today to start the conversation.
