Financial Incentives for Residential Solar Power Installation
New Government Financial Incentives have made this the best time to use solar power in California. These financial incentives are available from the State and Federal governments to help encourage investment in solar energy. Utilizing these strong state rebates and the most generous Renewable Energy Investment Tax Credit in a generation, you as a homeowner can now install a solar system that could pay for itself in as few as 4 to 6 years.
Over the last 35 years, the average annual rate increase has been 6.5% on electricity (high energy users have seen substantially greater increases).
Federal Incentives Investment Tax Credit
Residential solar power systems installations are now eligible to receive a 30% Investment Tax Credit (ITC) after rebate cost. The Economic Stabilization Act of 2008 included relief from previous Alternative Minimum Tax restrictions. The $2000 cap has been replaced with an unlimited 30% tax credit. Please Contact a SoCal Solar Energy, Inc. Representatives to learn more about Financial Incentives you may be eligible to receive.
California Incentives for Homeowners California Senate Bill 1 (SB1) was signed into law in 2006 and provides $2.1 Billion to be used over 10 years as incentives to build commercial and residential solar systems in a program called the California Solar Initiative (CSI). Pacific Gas & Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDGE) are the participating utilities for these incentives. The CSI rebates paid to homeowners are on a declining schedule – so the sooner you go solar, the higher level of rebate you receive.
Rebates for Residential Solar Systems Residential solar power systems are eligible for a rebate of 20-30% of the total system cost based on the EPBB or PBI, which are based on system-specific design factors. SoCal Solar Energy, Inc. can effectively discount the rebate amount from the net contract price.
Expected Performance Based Buyback (EPBB) For most homeowners (systems less than 50 kW AC in size), the CSI program will pay a one time rebate payment based on the system's Expected Solar Performance. This rebate level is calculated by incorporating system-specific design factors including location, tilt, azimuth, sun exposure, and other installation details.
Performance Based Incentive (PBI) If client prefers, and for all residential solar power systems,/em> over 50 kW AC in size, monthly rebate payments will be made based on the actual system performance in kilowatt hours (kWh) of solar power produced and measured over a 5-year period. Under this program the rebate is paid directly to the client. The CSI rebates apply to solar systems within the service territory and receive current or future retail level electric service from PG&E, SCE, or (SDG&E). Other municipal utilities (such as SMUD, LADWP, Healdsburg, Riverside, etc.) offer independent solar rebate programs and incentives. Please contact a SoCal Solar Energy, Inc. Energy Consultant to learn more about CSI rebate levels in your area. For more information on the CSI programs, please also visit : http://www.gosolarcalifornia.ca.gov/csi/index.php
California Solar Property Tax Exemption Solar is one of the few home improvements that can be justified in terms of return on invested dollar. This tax exemption extends for the life of the solar system. The National Appraisal Institute notes that the value added to a home by a solar PV system is 20 times the value of the electricity costs saved in the first year. Due to the significant State rebate, the value of your solar system is often greater than the cost of purchase from day one.
California Net Energy Metering California's Net Energy Metering Law allows solar PV system owners to bank excess electricity on the grid. For a credit to the owners' account. Credits (excess power put back on the grid) and debits (power used from the grid) are averaged monthly and annually. On rainy days or at night, the solar customer uses these credits to purchase electricity from the utility grid, mostly at lower off peak rates. From month to month your bill will reflect the balance from the credits and debits. A properly sized PV system should equal out these debits and credits. So from month to month the bill should be very low, if not in the negative credit side. At the end of the year when the debits and credits are balanced, if you have a credit balance. The utility provider will cut you a check for the amount of kilowatts credited to the grid.