⚠️ 2026 update on the federal tax credit
The 30% federal residential solar tax credit (Section 25D) expired on December 31, 2025 for systems you buy with cash or a loan. Cost and savings figures on this page that assume that credit may be out of date. Two things still apply: Nevada's sales-tax and property-tax exemptions and NV Energy net metering, and systems on a lease or PPA may still qualify for a federal incentive through the end of 2027. For numbers that reflect today's incentives, book a free review and talk to a tax professional about your situation.
Quick answer: Solar in Riverside and the Inland Empire runs on Southern California Edison's territory under California's NEM 3.0 (now called the Net Billing Tariff). The economics shifted significantly when NEM 3.0 went live: export rates dropped, and a battery is now usually required to make the math pencil. An independent agent like me with a multi-installer bench is well-fit for this market because installer pricing varies widely and the battery sizing decision is sensitive. SCE-territory solar still works — it just needs to be designed correctly for the new rules.
What changed under NEM 3.0
California's CPUC Net Energy Metering page has the official rule. The short version: under NEM 2.0, you got near-retail credit for power exported to the grid. Under NEM 3.0, export credits are based on time-varying "avoided cost" rates that are roughly 75–80% lower than retail during midday.
In plain terms: solar without a battery now exports cheap and re-imports expensive. To capture the full value of your production, you need to store it and use it during the evening peak.
What this means in Riverside / IE specifically
Inland Empire homes — Riverside, Moreno Valley, Corona, Rancho Cucamonga, Fontana, Ontario, Redlands — see significant summer cooling load. AC runs hard from afternoon into evening. Under SCE's TOU rate plans, evening hours are the most expensive. A battery that discharges into evening AC load is where the savings actually live now.
Side-by-side: NEM 2.0 vs NEM 3.0 economics
| Factor | Old NEM 2.0 | Current NEM 3.0 (Net Billing) |
|---|---|---|
| Pricing model — solar without battery | Strong; ~12–15 year payback | Weaker; payback often 12–18+ years |
| Pricing model — solar + battery | Battery was optional | Battery now standard for good economics |
| Federal tax credit status | Expired 12/31/2025 for purchased systems; lease/PPA only through 2027 — see IRS rules | Same |
| Install quality control | Same — installer-dependent | Same; design complexity higher |
| Customer service responsiveness | Same | Same |
| System size pressure | Reps still pushed bigger systems | Now reps push bigger battery — same dynamic |
| What happens at home sale | Owned conveys cleanly | Same; lease/PPA still complicates sale |
| Time-of-use rate plan required | Yes | Yes — see SCE's customer generation page |
The battery sizing decision
This is the single most important design decision in IE solar today. Too small a battery and you give up evening peak savings. Too large and you've spent capital that won't pay back inside 12 years.
Typical IE single-family home with 1,000–1,500 kWh/month usage: 13.5 kWh of battery (Tesla Powerwall 3, FranklinWH, or two Enphase IQ 5P) is the sweet spot. Larger homes with EV charging may need 27 kWh. Smaller condos may pencil at 10 kWh.
SCE rate plan strategy
Under NEM 3.0 you'll be on a TOU rate plan. SCE's TOU-D-PRIME or TOU-D-4-9PM are the typical solar plans. The plan you're on materially changes the battery dispatch strategy. Make sure your installer or agent is designing the system to your specific TOU plan, not a generic baseline.
Where the agent model wins in IE
NEM 3.0 made design quality matter much more than it did under NEM 2.0. A salaried rep at a national company with a fixed price book often can't tune the design to your specific TOU plan and usage profile. An agent with multiple installer partners can run two or three designs against your actual hourly load shape and pick the one that pencils.
This is a real thing. Same homeowner, same panels, two different battery sizes — the lifetime savings can swing $15K based on getting the design right.
Installer landscape in the Inland Empire
Riverside, Moreno Valley, and Corona have a deep installer bench — partly because the IE was a major NEM 2.0 boom market. The downside is high variance in quality. Some installers transitioned cleanly to NEM 3.0 design; others are still pricing 2.0-era systems and the math doesn't work.
The way I screen IE installers:
- Active CSLB C-46 (solar) license
- Documented NEM 3.0 design experience — ask for sample post-NEM-3 system designs
- Battery installer certifications (Tesla, FranklinWH, Enphase)
- Workmanship warranty backed by the install company
- References from IE customers with at least 12 months of post-install data
The financing wedge — same in CA as in NV
The 30% federal credit expired December 31, 2025 for systems you buy — it now survives only on lease and PPA deals through the end of 2027, where the third party keeps it. The FTC's solar lease primer applies the same way in CA. California's own incentives are unchanged: SGIP rebates for batteries and NEM 3.0 net billing still apply. With NEM 3.0 making the math tighter, getting the battery design right — and capturing SGIP where you qualify — matters more than ever now that the federal credit is off the table for purchases.
California Solar Rights Act
If you're in an HOA-governed community in IE, the California Solar Rights Act (Civil Code 714) protects your right to install solar despite most HOA restrictions. HOAs can impose reasonable aesthetic conditions but cannot prohibit. Useful to know if your HOA is being difficult.
What I'd ask any IE solar installer
- Is the design optimized for my specific SCE TOU rate plan?
- What's the battery dispatch strategy — self-consumption, TOU shifting, or both?
- How was the battery size determined — production-sized or load-sized?
- What's the production guarantee, if any, under NEM 3.0?
- Workmanship warranty — length, scope, who backs it?
Closing
Solar in Riverside and the Inland Empire still works. NEM 3.0 made it harder but not unprofitable — it just demands a better-designed system, usually with a battery. Here's my California solar overview. If you want me to bid your IE address against my installer bench, request a quote here.