California rebate and other programs
New solar incentives begin in January 2007
In January 2006, the California Public Utilities Commission approved the California Solar Incentive, a comprehensive $2.8 billion program providing solar incentives for 11 years. Existing CPUC and CEC solar incentive programs will be consolidated into CSI by Jan. 1, 2007.
The CPUC recently published a summary of solar incentive changes that will take effect in January 2007.
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Solar photovoltaic (PV) reservation applications for the state Energy Commission’s current Emerging Renewables Program (ERP) will continue to be received through close of business December 29, 2006. ERP reservation applications for solar incentives submitted after December 31, 2006, will be rejected and returned to sender.
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Beginning January 1, 2007, the Energy Commission’s New Solar Homes Partnership will focus on PV systems for new residential buildings. The CPUC, through program administrators, will provide incentives for all other residential and non-residential customers.
More on CSI » | Latest update »
Check out the state's new all-things-solar website: gosolarcalifornia
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RESIDENTIAL SOLAR
California Energy Commission
Emerging Renewables Program
The California Energy Commission provides cash rebates on eligible renewable energy electric-generating systems. The CEC rebates are calculated on a dollars-per-watt basis. Phone: 1-800-555-7794 (in California) or 916-654-4058 (outside California).
New program info as of December 15, 2005 ... CPUC
orders stop-gap funding of $300 million through 2006 for solar projects up to 1
megawatt.
COMMERCIAL/INSTITUTIONAL SOLAR
Pilot Performance Based Incentive Program (PBI)
A new CEC program provides incentive payments based on actual energy produced in kilowatt hours (kWh) by eligible solar PV systems. PBI is open to residential, institutional, and commercial installations, however, commercial systems tend to derive the greatest benefit from PBI because of additional business tax incentives available.
The PBI rebate level is $0.50 per kWh based on actual energy production with a per project maximum of $400,000, paid on a quarterly basis over a three-year period rather than as a one-time lump sum rebate. The PBI reservation period is one year.
More PBI details »
Self-Generation Incentive Program
New program info as of December 15, 2005 ... CPUC orders stop-gap funding of $300 million through 2006 for solar projects up to 1 megawatt. Provides financial incentives primarily to business and large institutional utility customers who install certain types of on-site distributed electrical generation, including PV systems between 30kW and 1MW. Requires facilities to be certified to operate in parallel with the electric system grid (not back-up generation) and to meet other criteria established by the California Public Utilities Commission.
Marin County
Marin Solar Program
A Marin County Community Development Agency program offers different rebate amounts for solar installations including:
- Solar PV - $500
- Solar domestic hot water - $300
- Solar pool heater - $200
Solar equipment installations must meet the following qualifying criteria:
- Applicants must be located in unincorporated Marin County or be a County of Marin employee
- Installation must have been purchased by and/or building permit signed after June 14, 2005
Downloads for rebate program information and forms (pdfs):
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California tax credits
California Solar Tax Credit
State tax credit on PV and wind systems up to 200 kW is 7.5% on the net cost for systems completely installed after Jan. 1, 2004 and before Dec. 31, 2005. See the California Energy Commission's solar tax credit information guide (pdf) to determine whether your solar energy system is eligible. Use the links below to download the tax credit form and worksheet.
Federal tax credits
The 2005 Federal Energy bill contains the following important tax incentives for solar energy:
- Increases the existing 10% tax credit for commercial solar installations to 30% for two years with no cap (limit) on the amount of credit. This applies to all property placed in service after December 31, 2005 and before January 1, 2008. The tax credit reverts to the permanent 10% credit thereafter.
- Creates a new 30% tax credit for residential solar installations for two years, capped at $2000. This credit applies to all property placed in service after December 31, 2005 and before January 1, 2008.
- All solar technologies, including PV, solar water heating, concentrating solar power (CSP), and solar hybrid lighting are eligible to claim these tax credits.
For more information, see the Solar Energy Industry Association (SEIA) FAQ on New Federal Solar Tax Credits (pdf). Watch here for more information and updated federal tax forms.
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More incentive information
Rebates and grants in California
A table of available programs compiled by the California Solar Center.
PG&E Rebates and Energy Efficiency incentives
Save energy and money. PG&E offers rebate applications and incentive vouchers for energy efficiency and low income energy efficiency programs. Also includes energy saving resources.
Looking for information about loans for PV systems? »
Looking for information about other renewable energy incentive programs outside of California? »
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