California State Rebates: 

As part of Governor Schwarzenegger’s $3.3 billion, “Million Solar Roofs Program." California has set a goal to create 3,000 megawatts of new, solar-produced electricity by 2017.  The goal is to move the state toward a cleaner energy future and to help lower the cost of solar systems for consumers. 

“The California Public Utilities Commission,”  through its “California Solar Initiative (CSI)” program , provides incentives over the next decade for new and existing residential homes.

The “California Energy Commission”  manages a 10-year, $400 million program to encourage solar in new home construction through its “New Solar Home Partnership”. 

All these Rebate Programs help promote Solar Energy and typically cut final cost from 30% to 50% depending on your local utility.  To find your utility click (here). 

Federal Tax Credit: 

The Federal Investment Tax Credit for Residential and Commercial properties is 30% of net system cost.  This is a one-time credit, but may be carried forward if not completely useable in the system installation tax year.  There is no maximum credit for systems place into service after 2008 for commercial properties. 

Additional Benefits 

Accelerated Depreciation: 

Federal Guidelines have been established for the Accelerated Depreciation  of commercial solar electric systems. A number of renewable energy technologies are classified as five-year property (26 USC §168 (e168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. 

Easy Maintenance

With no moving parts, solar systems are virtually maintenance free.  An occasional cleaning of the modules, usually taken care of by rain, is all that is required.

Inflation

By installing a solar electric system you can completely eliminate your utility bill for your home or business.  On a yearly basis, a commercial or residential property owner will save on average of approximately 6%, based on CPUC 1970-2001 data) due to adjustments for inflation. 

Longevity

Solar energy systems provide your home with power for 25 years and longer.  Most modules have a 25-year warranty on power production

Net Metering

Net metering allows utility customers to be credited full retail price for the electricity their renewable energy system sends back to the grid.  During the day when the solar panels are producing electricity, your house will be using the solar energy made by natural sunlight.  At night your electrical provider will provide your energy.  You would only be responsible for the net difference. Net Metering allows you to either completely eliminate your power usage or substantially reduce your utility bill by pulling you out of the most expensive Tiers.

Property Appreciation

Solar powered energy systems can actually appreciate the overall value of your home.  In today’s market, solar panels can increase the value of a home or business by as much as $20,000.00 for every $1000.00 saved in utilities annually. This could actually increase as utility rates continue to rise. And while you gain an appreciation  of your property, by California law, your taxes cannot reflect the increase due to the value of the solar system.

Property Tax Moratorium:

The State of California has provided a Property Tax Exclusion for Solar Energy Systems.  The California Revenue and Taxation Code allows a property tax exclusion for solar energy systems installed between January 1, 1999 and December 31, 2016.