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Solar Energy — about the future of the planet.

Solar Energy Installation Incentives

California is blessed with an abundance of Solar energy potential that is just beginning to be utilized. The California Solar Initiative offers cash incentives for installing residential and commercial solar electric systems.

Residential rebates

The current residential (retrofit not new, either a remodel or pre existing home) home rebate is at $.65 per installed watt. Typically this covers approximately 15-25% of the cost of a PV system. The rebate program is divided into three main geographical areas:

PG&E, SCE and the utility for the San Diego area (CCSE). Currently Sun Pacific Solar Electric is focusing our attention on PG&E and SCE territories to better serve our clients.

The rebates are designed to go down over time as the number of systems that are installed reach certain thresholds of watts installed. The program has set up a "trigger tracker' so that the rebate quantities and levels can be tracked.

The California Solar Initiative (CSI)

The California Solar Initiative (CSI) is the solar rebate program for California consumers that are customers of the investor-owned utilities.

Commercial rebates

The current commercial rebate levels are set at $.65 per installed watt in both SCE and PG&E territories. Commercial rebates are decreasing more rapidly due to the projects being larger and the fact that the Federal tax credits that can be combined with accelerated depreciation, make a much more attractive financial payback for commercial PV systems.

Federal tax credits

Residential

The current Federal tax credit for a residential system is 30% of the system cost after subtracting the CSI rebate. This 30% tax credit can be used for the calendar year that the system is installed and if need be, carried over into the next tax year. The credit is not a deduction but a dollar for dollar credit on any tax liability.

Systems that are installed in 2011 can qualify for a cash grant in lieu of the federal residential energy investment tax credit (ITC) (30% of system cost).

Commercial

Federal tax credits are available for up to 30% of a commercial PV systems cost after the CSI rebate has been subtracted. The 30% tax credit can be substantial and bring the cost of a commercial installation to a very attractive level.

Commercial PV systems are also eligible for an accelerated 5 year Solar depreciation schedule. The accelerated depreciation added to the CSI rebate and the Federal tax credit make Solar an outstanding investment, easy to purchase and a highly reliable product.

More info on the business energy investment tax credit