Federal Incentives

The Energy Act of 2005 passed by the U.S. Congress provides homeowners a federal tax credit equal to 30% of the cost of a residential solar electric or solar domestic hot water system. A 30% investment tax credit is available for commercial systems.

An accelerated 5 year corporate depreciation for solar photovoltaic systems is allowable – for more information please refer to Internal Revenue Service Publication 946 and Internal Revenue Service Form 4562 addressing Depreciation and Amortization.

Programs and Incentives offered by State of California

The California Public Utility Commission (CPUC) approved the California Solar Initiative (CSI) on January 12, 2006.  The CSI is a $2.167 billion program that provides incentives for solar development over an 11 year time frame.  Click here for details on the California Solar Initiative.

California Energy Commission’s Emerging Renewables Program (ERP)

This program offers incentives for photovoltaic renewable energy generating systems that are less than 30kw and connect to a utility power grid.  Customers within the utility service areas of PG&E (Pacific Gas & Electric), SCE (Southern California Edison Company), SDG&E (San Diego Gas & Electric) qualify for a rebate in the amount of $2.50 per watt (as of January 1, 2007).  This program includes incentives for Wind & Fuel Cell Renewable Energy Electric-Generating Systems. Click here for more information. Please note rebates are scheduled to decline in graduated amounts based on total megawatt installed milestones. Funding has been increased and extended through The California Solar Initiative until 2017.

State Property Tax Exemption

The California Revenue and Taxation Code section 73 provides a property tax exemption for photovoltaic solar energy systems installed on or prior to December 31, 2009.  Qualifying solar energy systems are defined as those that “are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy.”

Please note a current list of state and local programs is available at The Database of State Incentives for Renewable Energy.

APG SOLAR will complete and submit all of the necessary paperwork with the CEC and your local utility company to reserve and claim your rebate.

Tax Credits

Up to 30% for businesses and the lesser of 30% or $2000 for residential systems

Rebates

California currently provides $1.90 per watt rebate.

Accelerated 5 year depreciation on commercial systems

For commercial systems, accelerated depreciation is available for the depreciable basis of the solar electric system, on the portion of the cost that is not covered by rebates or grants.

Increased Home Value

For every $1,000 reduction in annual operating costs from energy efficiency, a home's value is increased by $20,000. So essentially the value of the home is increased by the annual operating costs savings multiplied 20.

Hedge Against Rising Electricity Prices

Once you have invested in your system, you will be producing power independently. You will then be less susceptible to increases in energy costs on the power you produce for the life of your system. Electricity rates have historically increased by 8% on average each year for the past 30 years.