California legalizes plug-in balcony solar systems

What the new law allows

Gov. Gavin Newsom signed SB 868 on Wednesday, making California the 10th state to allow plug-in solar systems without advance utility approval. The law takes effect in 2027 and is scheduled to expire Jan. 1, 2030.

Residents may place qualifying systems on balcony railings, outside windows or in yards. Each household is limited to 1,200 watts of generation. Instead of seeking utility approval and paying interconnection fees, residents must notify their utility when installing a system.

The systems generally combine a small number of solar panels with an inverter and cables. Models now on the market cost between and. Supporters say they could supply up to 20% of a household’s electricity and reduce annual bills by as much as for a small apartment.

Safety and access requirements

Qualifying systems must prevent electricity from flowing back onto the grid during an outage. They also must comply with state and national electrical codes and carry certification from a recognized national testing organization.

Underwriters Laboratories currently offers the only qualifying certification. Some products may therefore require installation by a licensed electrician rather than being plugged directly into a wall outlet. Compliant kits are expected to become available in California by early 2027.

Major investor-owned utilities, including Pacific Gas and Electric Co. and San Diego Gas & Electric, opposed SB 868 over safety and ratepayer concerns. Firefighter and PG&E worker unions moved from opposition to neutral after lawmakers added electrical-code requirements.

Landlord and homeowner association rules may still affect whether residents can install the systems. The law does not eliminate those property-level restrictions.