Solar Incentives for California
Because California has a ton of incentives, it’s one of the best states for homeowners to go solar. California’s climate is also one of the sunniest places on earth, so it’s no surprise that we lead the country for solar power generation (#winning). We set the standard for clean energy, with a goal to run 100% carbon-free by 2045. It’s no wonder they call us The Golden State.
Self-Generation Incentive Program (SGIP)
There is no place better than California to purchase a solar battery backup and no better time than now. Our state’s Self-Generation Incentive Program (SGIP) offers rebates to California households for solar battery back-up systems, and it has been extended to 2025.
California homeowners that are customers of PG&E, SCE, SoCalGas and SDG&E utilities are eligible for this rebate. SGIP can go as high as $400 per kilowatt-hour. The amount of the rebate depends on when it was purchased as well as the size of the battery. Also, as more batteries are installed, the rebate amount will decline. You can visit the SGIP program dashboard to see how much funding is still available. To get the most out of this rebate homeowners should purchase solar batteries ASAP.
Net Energy Metering (NEM 2.0)
Net Energy Metering (NEM) is a great incentive to help homeowners get extra benefits from their solar panels. Your current electric company will take all the extra energy you generate and give you credit in return. This credit can be used to pay your future bills. This is a great way to effectively ‘store’ your extra energy during summer to use during the winter.
This year, California has been shifting to Time-of-Use (TOU) rates under the recently passed Net Metering 2.0 policy. NEM 2.0 makes your electricity worth more during peak hours (4PM – 9PM). These are times when homes with solar panels need electricity most. Then they have to rely on grid power to keep the lights on.
Sun Energy CA can help you manage California’s TOU rates. Using solar battery back-up systems, you can use your own energy during peak times. This system will remove your need to rely on the grid during the times when rates are at their highest. Your battery is also able to send your extra energy back to your utility during the peak time. Giving you the most credit for your energy. Learn more about solar battery back-ups.
Extra Rebates From Your Local Utility
Some municipal utilities like Southern California Edison (SCE) offer many programs and rebates for residents. These rebates are based on many factors including the estimated performance of your home’s solar panel system. For a complete list of the programs available, visit SCE Residential Solar Programs. Check your local utility for more information on the programs they provide.
Property Tax Rebates
Homeowners understand the value of property tax exemptions. California is offering tax exemption for all residential solar systems until the end of 2024. Since solar panels can increase the value of your home by up to $15,000 it is always a wise investment, even if you decide to sell your home.
Other Tax Exemptions
Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment is a welcome addition to the other incentives available in our Golden State. You can pocket an extra 5.25% state sales tax you might normally pay when purchasing home improvements.
ITC – The Federal Tax Credit
This is the big one, the biggest incentive to go solar for California homes right now. Homeowners that have a solar panel system installed through December 31, 2020 will be eligible for 26% federal tax credit based on the total cost. If you purchase a 6kW system for $24,000, you’ll only pay $17,760 after this tax credit.
This federal tax credit will drop to 22% in 2021. In 2022 and on, it will drop completely. If you are interested in going solar, the longer you wait, the more you’ll have to pay.
Am I Eligible To Claim Solar Tax Credits?
You are eligible for the Federal ITC as long as you own your solar energy system, rather than lease it. This is also true for the vast majority of state and local incentives for solar, although in some special cases a lease will grant you the financial benefits associated with the sale of solar renewable energy certificates (SRECs). You are also eligible even if the solar energy system is not on your primary residence – as long as you own the property and live in it for part of the year, you can claim the ITC. If you’d like to learn more here’s an in-depth guide on claiming solar tax credits.
Prefer video? Well you’re in luck!
We have a 3 minute video going over California solar incentives and how you can qualify.
Solar Power from Sun Energy CA
All of us in Sun Energy CA understand that everyone’s life is unique. Every family has their own financial situation. Whether you want to own your own system with solar incentives or simply lease one with $0 down, Sun Energy CA can help. We offer a range of flexible financing options. All of them are designed to help you claim your own slice of the California sun.
Join over 600 California households who have gone solar with Sun Energy CA. Whenever you are ready, our solar advisors are here for you. To get started, get in touch with us today.
**Customer’s ability to monetize rebates, incentives and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Sun Energy CA product type, and whether a customer purchases or leases a solar panel system from Sun Energy CA.**
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Did you know?
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