With rising electricity costs and a commitment to sustainability, going solar has never been more appealing. Some people hesitate to install solar panels because of the upfront cost. Fortunately, for California homeowners, there are many opportunities to embrace solar energy while benefiting from California solar incentives. This is a guide that will explore the federal, state, and local California solar incentives, rebates, and tax credits available to you so that you have all the information you need to make your decision.
Federal Solar Incentives Available to California
Residential Clean Energy Credit
One of the best solar incentives available to California homeowners is actually a federal incentive. The Residential Clean Energy Credit incentivizes homeowners to invest in solar energy. It allows California homeowners to deduct 30% of their total solar installation costs from their federal taxes, including installation, solar panel, and battery storage expenses. If you install a bigger solar system, you’ll enjoy a bigger credit since there is no maximum limit on how much you can claim. This federal incentive is available until 2032.
State California Solar Incentives
California Solar Initiative (CSI)
While California does not have a specific state tax credit for solar like some other states, the California Solar Initiative (CSI) provides cash rebates for solar energy systems based on performance. Homeowners can benefit from these rebates to offset the cost of their solar installation, making it more financially feasible.
California Solar Net Energy Metering (NEM)
California’s Net Energy Metering (NEM) policy allows homeowners with solar panels to receive credits on their utility bills for the excess energy they produce and send back to the grid. This means that if your solar system generates more electricity than you use, the surplus can be credited toward your future energy consumption, effectively reducing your electricity bills. NEM credits are calculated at the retail rate, ensuring homeowners receive fair compensation for their contributions to the grid. California NEM policy helps prolong the savings you enjoy after installing solar panels.
Local California Solar Incentives
California is not just about federal credits; it also offers numerous local incentives that can further ease the financial burden of installing solar panels. Each California city, county, and utility company has different local California solar incentives, so homeowners should research what’s available in their area.
Examples of Local California Solar Incentives
Here are just a few examples of local California solar incentives:
- Los Angeles Department of Water and Power (LADWP) Solar Incentive Program: LADWP offers incentives based on the size and type of the solar system installed. Homeowners can receive cash rebates that help offset installation costs.
- San Diego Gas & Electric (SDG&E) Solar Rebate Program: SDG&E provides rebates for residential solar installations, which vary depending on the size of the system. Homeowners can receive up to $1,000 based on the system’s capacity.
- Sonoma County Energy Independence Program (SCEIP): This program offers financing options for homeowners looking to install solar energy systems. Through SCEIP, residents can finance their solar installations via property tax assessments, making payments more manageable.
These local solar programs are far from the only ones available to Californians adopting solar energy. Do research to make sure you know about all the California solar incentives that apply to your area.
The Solar Experts at Attyx
Taking advantage of the solar incentives out there not only alleviates the financial burden of solar installation but also helps promote a more sustainable future for California. New solar incentives, rebates, and tax credits are available all the time. If you’re interested in installing solar panels and want to hear from a team of experts about the current California solar incentives, reach out to Attyx.
