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Market Requirements Overview-California

Anita-PLR Product Ops avatar
Written by Anita-PLR Product Ops
Updated this week

This article provides a clear, state-by-state breakdown of all requirements and links involved in the solar installation process, covering every requirement from M0 to M1 through M2 for California. It outlines the documentation, approvals, and compliance steps that installers and sales teams must follow to ensure each project meets state-specific regulations. Designed as a practical guide, it helps teams quickly understand what’s required in each state to keep projects compliant and moving efficiently.

California-Active Utilities

State

Utility

Minimum Production factor for sales.

California

  • Los Angeles Dept Water & Power -LADWP*

  • Pacific Gas & Electric - PGE

  • San Diego Gas & Electric - SDG&E

  • Southern California Edison SCE

  • Imperial Irrigation District (IID) *

  • Anaheim Public Utilities (APU) *

800

California’s New CSLB Disclosure & Savings Estimate

Beginning November 1, 2025, California residential solar utility Interconnection Application submissions must include a new Solar Energy System Supporting Information document (English), (Spanish), (LightReach English template), and (LightReach Spanish template)

The 7-page document, also referred to as the CSLB Disclosure Document, requires a 1-year energy savings estimate with standardized inputs and assumptions for solar or solar+storage.

  • Utilities are directed to require it with Interconnection Application submissions by November 1, 2025

  • Required for residential only

  • New construction is exempt

  • Applies to PG&E, SCE, SDG&E, and small IOUs Bear Valley, Liberty, and PacifiCorp - no municipal utilities

  • Also, applies to battery retrofit (new storage with existing PV)

California Utility Guide

M1 and M2 California Requirements

California’s New CSLB Disclosure & Savings Estimate

New Milestone 1 Requirement

LightReach will begin requiring a copy of the completed Solar Energy System Supporting Information document at Milestone 1 on submissions beginning November 1, 2025 in the applicable utilities (PG&E, SCE, and SDGE).

All Milestone 1 submissions in the applicable utilities (PG&E, SCE, and SDGE) must upload a completed copy of the Solar Energy System Supporting Information as an Incentive Deliverable beginning November 1, 2025.

California-Battery Settings and Operational Modes

Setting Requirements:

As we start advising on Battery Settings, many of these begin as recommendations. As some become strict LightReach requirements verified at Milestone 2, we will list them here.

Although not recommended by LightReach, we acknowledge that customers may choose to adjust these settings in their mobile app after you set them.

California NEM 3 utilities must follow the OEM preset modes for NEM 3 (to be effective 1/1/2026)

California NEM 3 customers must have the NEM 3 eligible rate plan selected (to be effective 1/1/2026). Each of the OEMs have these pre-programmed in a selectable drop-down list.

CA Net Billing Tariff (NEM 3):

Applies to PG&E, SCE, and SDGE

California-Design Package | Inputs and Deliverables

State

Snow Loss (Only use if design platform does not have a total value)

Minimum System Loss without Shade Loss (Includes Snow Loss)

CA

0%

9.1%

California-Incentive Deliverables - M1 Milestone

System Pre-Requisites by State:

State

Prerequisite

CA

CA RPS Incentives

  • In PG&E, SCE, and SDG&E, system cannot exceed 150% of customer's previous 12- month consumption, or projected consumption if new construction or less than 12 months of usage history, or 150% of projected consumption if recently changed usage pattern (for example, with a new EV purchase).

  • Revenue Grade kWh Production Meter certified to ANSI c12.1-2008 standards required.

  • Array photos must clearly show each panel so they are countable.

M1 Documents: Submission Requirements

Installers must ensure that (1) All required documents are present and (2) System details, where applicable, match installation & other installation documents (for example, system size on incentive docs must match system size on planset).

State

Document 1

Document 2

CA

Utility Bill

  • Best practice to provide full copy when possible.

  • At minimum: Must show account number and address.

Approved Interconnection Agreement

  • Full PDF copy of the approved interconnection agreement from utility

  • Example Document for SCE: ​ICA - SoCal Edison (2).pdf

  • Required for all utilities, however, exceptions may be granted for LADWP systems below 10kW AC.

Solar Energy System Supporting Information (CSLB)

Incentive Deliverable beginning November 1, 2025. All Milestone 1 submissions in the applicable utilities (PG&E, SCE, and SDGE) must upload a completed copy of the Solar Energy System Supporting Information. See article below

California-Incentive Deliverables - M2 Milestone

Requirements by State:

State

Document 1

Document 2

California

CA-M2

N/A

N/A

California-Compliance: Guidelines

Subsidized Rate Plan Customer Policy

Details

Some electric utilities offer specialized rate discounts to certain customer groups, such as low income or medical assistance/disability discounts. These programs can vary widely in scope and details. Common utility subsidized rate programs include:

  • California's CARE discount for those below 200% of the Federal Poverty Level (FPL).

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