Rebates and Incentives
Here is some overview information for local, state, and federal incentives affecting the cost of solar PV and solar thermal. CCEnergy is well-versed in all of this information, and has developed relationships with the various agencies administering these programs. Handling all of the details and related paperwork is part of CCEnergy’s commitment to easy, turn-key project management. Let us know if you have any questions!
Federal Government
Federal Tax Credits
The federal government allows homeowners and business owners to deduct 30% of the cost of your solar PV system, through an investment tax credit (ITC). If you do not expect to owe taxes this year, you can roll over your credit to the following years.
Business owned systems may also be eligible for MACRS 5-year accelerated depreciation.
State of California
The California Solar Initiative (CSI)
In January 2007, the California Solar Initiative (CSI) was launched, with the impressive goal of reaching 1,940 megawatts (mW) of installed solar electric capacity by 2016. This is the equivalent, roughly, to one million solar roofs in California! The program is funded with a $2,167 million budget, and is focused on existing homes as well as existing and new commercial, industrial, government, non-profit, and agricultural properties.
California Solar Initiative rebates vary according to system size, customer type, and performance and installation factors. The subsidies automatically decline in "steps" based on the volume of solar megawatts confirmed within each utility service territory. To find out the current applicable rebate level, just give us a call, or refer to the following chart: www.csi-trigger.com
In May, 2010, CSI will also begin offering rebates for solar thermal (hot water) systems!
Federal and state incentives combined can save you approximately 50% off the cost of your solar PV system. Call us to find out more.
New Solar Homes Partnership
The New Solar Homes Partnership (NSHP) is administered by the California Energy Commission (CEC) and provides rebates for new residential construction incorporating solar PV as part of the initial build out. Rebate levels are typically higher than the CSI program, and require additional paperwork.
Local Incentives
A few city and county governments within California offer additional incentives, to further reduce the cost of going solar. San Francisco’s GoSolarSF is one such example.
For a complete list of the current energy-related rebates, please visit www.dsireusa.org
Financing
AB 811 and AB 474 allow businesses and homeowners to pay for energy efficiency, water conservation and renewable energy improvements through future property taxes. The low-cost loans, which are paid back through property taxes over their lifetime, are attached to the property, not the property owner. This is a way for almost any homeowners or business owner within a participating city or county to secure a low-cost loan and eliminate the high upfront cost of going solar. The list of participating cities and counties continues to grow, with the following offering programs as of March, 2010:
- Sonoma County’s Energy Independence Program (SCEIP)
- Berkeley’s FIRST Program
- San Francisco’s Green Finance Program
Property Value
Property Tax Exemption for Solar Energy Systems. Solar energy systems are not included in property tax appraisals, under California Taxation and Revenue Code Section 73.
While a solar energy system will not increase a homeowner's property tax, it WILL increase property value. According to the National Appraisal Institute (Appraisal Journal – Oct. 1999), your home’s value increases $20 for every $1 reduction in annual utility bills. An article in Realty Times discusses the market for homes with installed renewable energy systems, published March 2002.
