California Solar Incentives

Exploring avenues to economize while transitioning to eco-friendly energy solutions for your household? California’s solar incentives have got you covered! With provisions ranging from federal tax credits to net billing, a plethora of incentives await to significantly ease the financial aspect of residential solar adoption for Californians.

Federal Tax Credit

A significant boon for homeowners contemplating residential solar installations is the Federal Tax Credit. This incentive bestows a 30% Investment Tax Credit (ITC) on the entire cost of the solar system, which can be leveraged to reduce the homeowner’s federal tax liability.

Net Billing

Net Billing emerges as an additional incentive enabling homeowners to economize on their energy expenditures. Through net billing, not only can homeowners offset their energy costs, but they can also accumulate credits for any surplus energy their solar system generates. In California, utilities promptly net out the homeowners’ energy production and consumption, meaning credits are tabulated based on the prevailing energy rate at the specific time of day and day of week when the excess energy is generated.

Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment

California has a cool Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment, which covers solar gear and solar batteries. This means you get to save some cash when you buy your new residential solar system, since you won’t be hit with the state sales and use tax on the solar equipment.

Property Tax Exclusion

In California, the value of active solar energy systems and equipment isn’t counted when sizing up your property for tax purposes. So, you won’t see your property taxes going up because of the added value from your solar system. Just a heads up, this sweet deal is set to wrap up on January 1, 2025.

Renewables Portfolio Standard

California’s shining bright in the renewable energy scene, with a good chunk of the credit going to its robust Renewables Portfolio Standards (RPS). These standards are laying down the law, telling California to get 60% of all its energy from renewable sources by 2030. If utilities don’t meet the standards, they’re looking at hefty fees, which nudges them to roll out some pretty enticing solar incentives for homeowners.

Electric Rates

It’s no secret that electric rates in California are soaring high compared to most other places in the US. That’s why taking the solar route can be a smart money move for homeowners. By flipping the switch to solar energy, you’re not just cutting down on the traditional energy sources, but also trimming down those hefty energy bills as time rolls on.

CLICK HERE to see if this program is available in your California zip code!