California Solar & Battery Incentives
If you own a home in California and are considering solar or battery backup, you’re in a fortunate position. California’s consistent sunshine offers an optimal climate, and there is a diverse range of incentives for both home and business owners. These incentives significantly enhance the affordability of transitioning to solar energy. Below, we’ve gathered information on some of the most advantageous solar incentives accessible to homeowners in California.
// Federal Investment Tax Credit (ITC)
One of the most significant incentives accessible to California homeowners is the Federal Investment Tax Credit (ITC).
Until 2032, the federal government offers a 30% investment tax credit on the total cost of a home solar system. In 2033, the credit decreases to 26%, and in 2024, it drops further to 22%. After 2034, the tax credit for residential solar systems concludes. To take advantage of this substantial incentive, prompt action is essential.
How it operates:
If you purchase your solar system outright, you can apply 30% of the total installation cost to your tax liability for the year.
For instance, if your solar panel system costs $17,000, a 30% tax credit would be $5,100. If you owe $4,000 in taxes for 2023, your tax bill will be reduced to zero, and you’ll receive a $1,100 tax credit on your return.
Interested in learning more? Get in touch with us.
// California Solar & Battery Incentives
In California, utility companies and local organizations extend rebates to homeowners installing solar systems.
Some available local rebates:
- Self-Generation Incentive Program (SGIP): Customers of PG&E, SCE, SoCalGas, and SDG&E utilities qualify for this rebate. The SGIP program offers rebates to California households for a solar battery, potentially reaching up to $1,000 per kilowatt-hour based on qualifications. Learn more about SGIP here.
- Disadvantaged Communities – Single-family Solar Homes (DAC-SASH) Program: Running through 2030, this program allocates $8.5 million annually to customers in the top 25% most disadvantaged communities, meeting specific income qualifications.
- Local Utility Rebates: Some local utility companies offer solar rebates based on the estimated performance of the home solar panel system. Go Solar California provides a list of electric companies with solar panel and/or solar battery storage incentive programs.
To learn more about available solar rebates in your area, speak with one of our solar professionals at 619
// Net Metering
Net metering stands as a statewide solar incentive, empowering homeowners to capitalize on every unit of energy produced by their solar panel system. In essence, when your solar panels generate surplus power beyond your consumption, your utility company grants you credits applicable to future energy bills.
How it functions:
As part of your solar panel installation process, you have the option to replace your existing meter with a net meter. Net meters reverse direction when your system produces more energy than your home consumes, accumulating credits for periods when your home’s energy demand exceeds solar panel production.
In reciprocation, your electric company acknowledges these credits for any surplus electricity generated by your panels, offering you a means to offset future monthly utility expenses.
// Property Tax Exemption
For those concerned about potential property tax hikes following the installation of a solar panel system, worry not. Typically, when you enhance your property with something of value, the addition is evaluated at its current market worth and added to your property’s existing value.
California extends a tax exemption for residential solar systems until the conclusion of 2024. This translates to no additional taxes incurred due to the installation of a solar power system.
// What Savings Can You Expect with Soliosity?
Solar incentives and tax rebates provided by state and federal governments are available to homeowners in the California. However, to benefit from these opportunities, homeowners need to be informed. At Soliosity, we are well-versed in every potential opportunity for our customers, enabling us to reduce your installation costs more effectively than anyone else. If you’re prepared to discover the substantial savings achievable through solar energy, reach out to us today.
