Current State & Federal Solar Incentives

California Utility Rebates available until 2016
www.gosolarcalifornia.ca.gov/csi/index.html

Currently PG&E offers a cash rebate on new solar electric systems, covering up to 35% of the total costs. To be eligible the system must: feed into a utility meter, use eligible equipment, and have a ten-year warranty. Rebate levels vary by install type: commercial installations receive $1.10/W, residential retrofits  get $1.10/W, non-profits (i.e.churches, schools, govts) receive $1.85/W, and residential new construction qualifies for $2.25/W. (Average home system size = 5,000W) Note: the rebate program is structured so that rebates decline in value over time. At least once per year the rebates drop down to a new lower dollar-per-watt level. See www.csi-trigger.com.

Because the rebate program is a two-part process, systems do not have to be installed, or fully paid for, in order to have a rebate “reserved” in your name at today’s $/W rebate level. Once the rebate is reserved the installation must be completed within 12 months, and even if the rebate levels drop over that year, you will still claim the higher rebate. (Some systems qualify for an 18-month deadline.) The only commitment to reserve a rebate is a 10% deposit.

The $1.10/W rebate level for residential retrofit, commercial and non-profit installs is projected to drop down sometime in early 2010. Submitting a complete rebate reservation application months or weeks before a drop-down deadline is the best way to have your solar rebate reserved at the highest possible level. Please call us for details on how to beat the next rebate level drop-down.

Federal Tax Credits available until 2016
www.seia.org/solar_tax_policy

For most solar projects, the federal government offers a 30% Solar Energy Tax Credit for property owners that install a PV system, whether on- or off-grid. The credit is usually equal to 30% of the post-rebate total installed cost. If the solar tax credit is more than you can use for the year of installation, any excess tax credit can be carried forward: residential carries forward until 2016, commercial carries forward 20 years. The average tax credit for a home PV system is around $5,000-$7,000, or more. Also available is an additional 30% tax credit for residential solar hot water systems.

As an extra benefit, by  law (CA Tax Code Section 73) the  increased property value from a solar system  installed before  January  1st,  2017  is  exempt  from  property  tax. That’s right: increased property value without increased property tax. According to the National Association of the Remodeling Industry, Appraisal Journal, the Electric & Gas Industries Association, Wells Fargo Bank, SMUD, as well as many local appraisers, the addition of a utility-connected solar electric system will roughly increase a property’s value equal to the post-rebate value of the system. The increased resale value of a solar-powered property can allow a property owner to recoup the initial cost of the system and possibly more, making early payback happen when the property is sold! Plan It Solar is maintains a list of solar-knowledgeable appraisers to help ensure that you receive the proper return on your solar investment if and when you choose to sell your solar property.

Solar energy systems for businesses qualify for the 5-year Modified Accelerated Cost Recovery System (MACRS) depreciation deductions. Currently solar energy systems are classified as 5-year properties. The state of California also offers accelerated depreciation on commercial solar installations, with a difference acceleration model for corporate and non-corporate businesses. Check with a qualified tax preparer or accountant for accurate advice. See also Section 168 of the Internal Revenue Code and IRS Form 4562.

For Businesses Only: New Federal Grants for 2009-2010
http://treasury.gov/recovery/docs/Grants_Specified-Energy-Property.pdf

The federal government currently offers businesses a tax credit equal to 30% of the pre-rebate cost of installing a solar system, but that tax credit can be waived in order to receive a one-time federal grant equal to the tax credit. Grants are only available for systems  that have begun the installation before the end of 2010 and are so new that federal grant eligibility guidance and application materials were only just made available in July 2009. Please call us for details.

 

For additional information, visit these websites:
www.gosolarcalifornia.org
www.dsireusa.org
www.seia.org
Or contact Plan It Solar at:
This e-mail address is being protected from spambots. You need JavaScript enabled to view it          (530) 432-3776

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