California is leading the way in promoting the use of clean and renewable energy. One of the most popular ways to reduce your carbon footprint and energy bills is by investing in solar power. The state offers a variety of incentives for residents and businesses to install solar panels and make this green transition.
Whether you’re a homeowner looking to reduce your electricity bill or an entrepreneur looking to increase your company’s sustainability, this comprehensive guide to California’s solar programs and incentives will help you navigate your options and make an informed decision.
Local solar panel rebates
Home and business owners can receive cash back through state-run rebate programs when they install solar panels. In addition, local utilities, governments, and non-profit organizations may also provide rebates.
By purchasing solar panels from participating brands, individuals can take advantage of these rebate programs and receive additional savings on top of the reduced energy bill.
Wondering how much you could save on your solar installation? Get a free estimate today by calling Yorkshire Roofing at (800) 794-7444!
State property tax exemptions
Homeowners and builders can lower their tax burden by installing a solar energy system when purchasing or building a new home. California has a law that enables property owners to exclude the value of new solar installations from their property tax bill.
However, it’s important to note that all necessary permits from the county and state must be obtained before starting construction. We recommend that you consult with your mortgage lender before beginning the process.
Federal solar tax credit
The Solar Investment Tax Credit (ITC) is a federal incentive offered in California, providing a 30% tax credit for residential and commercial solar projects. This credit was first established in 2005 and has been extended through 2032.
However, there is a limit on the amount of tax credit that can be claimed by an individual or business, which is dependent on the size of the solar project. This means that some taxpayers may not qualify for the credit.
Net metering is a billing system that credits solar energy system owners for the electricity they produce and send back to the grid. It allows them to use the electricity generated on-site for their own personal needs.
Any excess electricity produced is then sent back to the utility company. The utility company will still bill for this energy, but at a reduced rate, which is only the cost of transmission instead of the retail price.
Self-Generation Incentive Program (SGIP)
The Self-Generation Incentive Program (SGIP) is a California program that has been in effect since 2001 and is designed to encourage renewable energy technologies. The program offers rebates for:
- solar photovoltaic (PV)
- solar thermal
- fuel cell
- geothermal heat pump
- landfill gas
- wind technologies
The SGIP is funded by the California Energy Commission and administered by the California Public Utilities Commission. Rebates are based on the size of the system installed and how much electricity it produces.
Property Assessed Clean Energy (PACE)
With the Property Assessed Clean Energy (PACE) program, you can finance energy-efficiency and renewable energy projects without having to pay upfront. The program is administered by local governments, who determine the amount that can be borrowed in a given year.
PACE is a convenient way to make your home more sustainable because the loan is repaid through property taxes over time.
Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program
The Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program is a public-private partnership that works with community organizations to provide solar energy systems to low-income families in Northern California.
The program offers technical support, financial incentives, and assistance when installing solar panels. Through this, families can benefit from cost savings and improve their quality of life.
California offers a variety of solar programs to help residents and businesses reduce their energy costs, while also promoting the use of clean and renewable energy. By taking advantage of these incentives, homeowners and businesses can make a significant impact on their energy bills and contribute to a cleaner environment.
It’s important to note that some of these incentives have expiration dates or have certain qualifications to be eligible for them, so it’s advisable to stay informed and check the availability of these programs. Investing in solar energy is not only an environmentally responsible choice but also a smart financial decision.
Want to be a part of the clean energy revolution? Call Yorkshire Roofing today at (800) 794-7444, and we’ll get you set up with your very own solar installation!