Learn About Some Californian Solar Rebates & Incentives

We have all heard of the great savings and money making abilities to be found in solar.  As if going solar didn’t have sufficient benefits already (lowering utility bills and protecting the environment to name a few), solar owners qualify for discounts and incentives that help reduce the cost of installing solar panels. These deductions on your solar system make it even extra affordable to go solar.

No requirement to worry about filling out complicated forms. As part of our solar services, we will take care of the utility rebate paperwork and enroll you in the net metering plan.

Solar Electric Rebates

Federal Tax Credit

California homeowners can get a 30% federal tax credit for solar electric panels installed between now and December 31, 2019 and step down after that. You will gain a credit against your income tax liability for 30% of the total installation cost, and any unused credits can be transferred forward to the next year.

Net Metering

Utilities based in California still currently contribute Net Energy Metering (NEM) programs to solar owners. The idea of net metering is moderately simple. Whenever your solar panels produce more energy than is being used, the meter will “spin backwards,” and power will be credited to your account. In nature, you will be selling excess energy during the day to your utility, and repurchasing it at night, all at the same rate ($/watt).

If you have excess energy creation at the end of the year, your utility company will either pay you for it at a lower rate or credit the sum to your account.

Utility Rebates Residential Solar Installations

LADWP offers homeowners discounts for solar electric panels at $0.40 per watt. Many other cities such as Burbank, Anaheim, Glendale, and Pasadena and Riverside (with others) have their own local rebate programs. We suggest visiting your utility’s website to see if they offer incentives for going solar.

Unfortunately, funds for the SCE rebate for residential solar electric consumers through the California Solar Initiative ran out in Spring 2014 and the rebate for SCE customers is no longer available.

Commercial Solar Electric Rebates

DCIM100MEDIAFederal Tax Credits and Accelerated Depreciation

The federal government offers a 30% federal tax investment credit on commercial solar power systems and provides businesses an accelerated depreciation schedule (MACRS) over 5.5 years.

Utility Rebates Commercial Projects

SCE offers substantial rebates for both large and small commercial solar electric systems through the California Solar Initiative (CSI). Depending on the size of your facility, you will qualify for either the Expected Performance Based Buydown (EPBB) or a Performance Based Incentive (PBI) program.

LADWP’s commercial solar rebate program is in Step 8 of 10 with an inspiration of $0.40 per watt.

Solar Pool Heating Rebates

Public and semi-public pools are now eligible for discounts through the CSI Thermal Rebate program when a solar pool heating system is installed. Organizations and companies that can take benefit of the rebate include schools, universities, fitness centers, apartment buildings, hotels, and waterparks.

The rebate will pay $5.00 for every unit of heat that is displaced by the installation of a solar pool heating system. This could diminish the cost of a solar pool heater by 50 %. Paybacks for a solar pool heater without a rebate are usually fewer than four years.

Solar Hot Water Rebates

All solar hot water buyers qualify for the 30% Federal Tax Credit, which will be granted through December 31, 2019.

Additionally, So Cal Gas (“The Gas Company”), PG&E and SDG&E consumers are eligible for solar hot water rebates through the California Solar Initiative. Residential solar hot water customers can demand to receive up to $2,719 while commercial solar hot water owners can earn up to $500,000.

Hopefully, you have learned a lot about solar incentives in this article, and if you are ready to purchase, contact us here at HahaSmart, we will make this experience easy and seamless; and you will save lots of money on your solar panel purchase.