A key aspect of implementing solar in homes and businesses is the cost associated with installation. All customers face the economic impacts of increasing energy costs from legacy providers and seek alternative means of securing energy. The government, both state and federal, recognizes that consumers require assistance to establish a cleaner, safer, and more stable energy supply.
Over the last several budget cycles, laws enacted at both levels of government have established tax incentives to ensure that consumers can defray a substantial portion of these costs. The inherent value of implementing solar at your home or business contributes to a cleaner environment, and a steady supply of energy with significant cost savings.
Residential Systems
Homeowners can now save approximately 45% of their system costs with the incentives and rebates available today.
California Solar Power Rebates and Incentives
Established through the California Solar Initiative (CSI) in 2006, the state-level rebate pays for a significant portion of your solar system installation cost. The actual rebate you receive is determined by a variety of individual factors including system wattage and actual electrical output.
The critical aspect regarding state incentives is that the state allocates rebates on a sliding scale pegged to the number of solar systems installed. As the number of systems installed grow, the rebate declines. So if you are considering investing in a system, now is the time to do it.
The best way to learn about these incentives is to call us. We will assist you in understanding the rebate process and determining if there are additional municipal incentive programs that you can take advantage of.
Additionally, you can find detailed information on state rebates and local programs from these websites:
Database of State Incentives for Renewable Energy (DSIRE)
30% Federal Investment Tax Credit
Residential solar power systems installed between January 1, 2009 and December 31, 2016 are eligible for a tax credit equal to 30% of the net system cost after rebates. Keep in mind, this is a CREDIT and not a deduction, so it reduces your tax liability dollar-for-dollar. In addition, if the tax credit exceeds your total tax liability, the excess amount can be carried forward to the following tax year.
Property Tax Exemption
Solar Energy Systems installed in California are not subject to property taxes.
Commercial / Government Systems
All businesses are faced with operating expenses and energy is a substantial portion of these expenses. Historically, it is also one of the few that were incredibly difficult to reduce. Every year businesses face increasing energy costs from their legacy provider. The current mix of rebates and incentive programs available help alleviate this costly dilemma. Solar power systems offer a significant positive investment for business owners that generate meaningful financial returns and operational cost savings.
30% Federal Investment Tax Credit / Grant
For systems installed between January 1, 2009 and December 31, 2016, business owners will receive a tax credit equal to 30% of the net system cost after rebates. Alternatively, for systems placed in service between 2009 and 2010, corporate tax filers can elect to take a 30% upfront cash grant that is not subject to federal tax in lieu of the tax credit.
5-Year Accelerated Capital Depreciation
Businesses can recover a substantial portion of their investments in solar power systems through depreciation deductions, thus making the economics of solar even more attractive. And for systems placed in service in 2009, businesses can take an additional 50% bonus depreciation.
California Solar Power Rebates and Incentives
Established through the California Solar Initiative (CSI) in 2006, the state-level rebate pays for a significant portion of your solar system installation cost. The actual rebate you receive is determined by a variety of individual factors including system wattage and actual electrical output. The critical aspect regarding state incentives is that the state allocates rebates on a sliding scale pegged to the number of solar systems installed. As the number of systems installed grows, the rebate declines. So if you are considering investing in a system, now is the time to do it.
The best way to learn about these incentives is to call us. We will assist you in understanding the rebate process and determining if there are additional municipal incentive programs that you can take advantage of. Additionally, you can find detailed information on state rebates and local programs from these websites: