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California SB 868 Explained: Plug-In Solar Is Coming to California in 2027

Gov. Newsom signed SB 868, the Plug Into the Sun Act, on September 30, 2026. What it allows, when it takes effect, what it means for renters and PG&E, SCE and SDG&E customers, and how much you could save.

Plugshine Editorial TeamUpdated 3 min read

Key takeaways

  • SB 868 was signed on September 30, 2026 and takes effect on January 1, 2027.
  • It allows plug-in systems up to 1,200 W AC per dwelling, certified by UL or an equivalent lab.
  • Utilities can't charge fees, require permission or demand an interconnection agreement.
  • A sunset clause ends the rules in 2030 unless the Legislature extends them.
  • At 33.6¢/kWh, a well-placed 800 W kit saves about $375 a year in California — payback in roughly 2.5 years.

On September 30, 2026, Governor Gavin Newsom signed SB 868, the Plug Into the Sun Act. California became the tenth state to legalize plug-in solar — and by far the biggest. With 39 million residents and some of the highest electricity prices in the country, it's now the most important plug-in solar market in the United States.

Here's what the law does and what it means for you.

SB 868 at a glance

Bill SB 868, Plug Into the Sun Act
Author Sen. Scott Wiener (D–San Francisco)
Signed September 30, 2026
Effective January 1, 2027
Size limit 1,200 W AC per dwelling
Certification UL or equivalent testing laboratory
Interconnection Exempt
Utility fees Prohibited
Utility permission Cannot be required
Sunset 2030

What the law allows

SB 868 creates a legal category for portable solar generation devices that connect to a building's wiring through an ordinary receptacle. If a device stays within 1,200 watts of AC output per dwelling and is certified by UL or an equivalent laboratory, it:

  • is exempt from interconnection requirements — no Rule 21 application, no utility review;
  • cannot be subject to utility fees;
  • doesn't require the utility's permission to install or use.

The "per dwelling" wording matters for apartment buildings: each unit has its own allowance.

When it takes effect

January 1, 2027. Until then, connecting a grid-tied plug-in system without going through your utility's interconnection process is still outside the law. The sensible plan: research and buy now, install on or after New Year's Day.

The 2030 sunset

During the Assembly Appropriations process in August, the bill picked up a sunset clause: its provisions expire in 2030 unless the Legislature acts to extend them. Supporters expect the experience of the first three years — and of the nine other states — to make renewal straightforward, but it's not guaranteed. A system you install in 2027 isn't going to stop working in 2030; the question is what rules would apply afterward.

Why California matters so much

Prices. California's average residential price was 33.61¢/kWh in July 2026 — second only to Hawaii and nearly double the national average. Customers of PG&E, SCE and SDG&E on time-of-use tiers often pay well above that in the late afternoon and evening.

Sunshine. Most of the state averages 5.5 or more peak sun hours a day.

Renters. California has one of the largest renter populations in the country, people who have largely been shut out of rooftop solar.

The combination makes California the best place in the lower 48 for plug-in solar economics.

How much you could save

Using California's average rate and sunshine, with 80% of the output used at home:

System Placement Saved per year Payback
800 W ($900) South, tilted ~$378 ~2.4 yrs
800 W ($900) South, vertical railing ~$265 ~3.4 yrs
800 W ($900) West, tilted ~$310 ~2.9 yrs
1,200 W ($1,300) South, tilted ~$567 ~2.3 yrs

Try your own setup in the calculator.

Time-of-use: think west, think battery

Most California residential customers are on time-of-use rates with a late-afternoon/evening peak (typically 4–9 pm). Solar produced at noon offsets cheaper off-peak power; solar produced at 5 pm offsets expensive peak power. Two ways to capture more value:

  • West-facing panels produce less in total but more in the late afternoon.
  • A small battery stores midday surplus and releases it during the peak. Read our battery guide.

Renters and HOAs

SB 868 is primarily about utility rules. Unlike New Jersey's or Colorado's laws, it doesn't explicitly override lease terms or HOA rules about what you attach to a balcony. In practice:

  • Read your lease for rules on balcony fixtures and alterations.
  • Propose a non-penetrating mount (railing clamps or a freestanding stand) and put the plan in writing.
  • Offer to show the certification and your renters insurance.

Our renter's guide includes a template approach.

What to do before January 1, 2027

  1. Measure your space and note which direction it faces and how many hours of direct sun it gets.
  2. Pick certified equipment. Look for UL 3700 listings, or at minimum a UL 1741-SB microinverter — see UL 3700 explained.
  3. Identify the outlet. Ideally an outdoor-rated GFCI outlet on a circuit without other heavy loads.
  4. Talk to your landlord or HOA if applicable.
  5. Watch for utility and CPUC guidance on notification and meter compatibility. We'll add it to our California page.

SB 868 is a turning point. If plug-in solar works in California, it will be very hard for any state to say no.

Frequently asked questions

When can I legally use plug-in solar in California?

SB 868 takes effect on January 1, 2027. From that date, qualifying devices up to 1,200 W can be connected through a standard outlet without an interconnection agreement.

Do I need to tell PG&E, SCE or SDG&E?

SB 868 prohibits utilities from requiring customer permission or charging fees for qualifying devices. Utilities and the CPUC may still publish guidance on notification or meter compatibility before the effective date; we'll update this page when they do.

Can my landlord stop me from installing balcony solar in California?

SB 868 focuses on utility rules. Your lease and building rules still apply, so get your landlord's agreement in writing before mounting anything on a balcony.

Does California's plug-in solar law include net metering?

No. Like every state plug-in law, it exempts these devices from interconnection requirements, and exported electricity isn't credited. Size your system to what your home uses during the day.

Sources

  1. pv magazine USA — Newsom signs California plug-in solar bill (Oct 1, 2026)
  2. Canary Media — Where does balcony solar stand in your state?
  3. EIA — Electric Power Monthly, Table 5.6.A (July 2026)
Editorial note. Plugshine is independent: we don't sell panels, accept payment for rankings or take installer leads. This guide is general information, not legal or electrical advice. Read our methodology.

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