As a resident of California, when you’re driving home you probably see an increasing amount of homes with solar panels on their roofs. You’ve probably also been hearing more and more about solar energy as a resource and the money saving potential solar installation offers. California has an abundant amount of incentives available for residents who are ready to “go solar.” This is heavily due to the Renewable Portfolio Standard (RPS), which is a regulation that in California requires all utilities in the state to source 33% of its electric generation from renewable resources by the year 2020.
We want California residents to be aware of the many incentives that are available to them. Residents can receive incentives from the state, electric companies, different counties and more.
On the state level incentives include tax exemptions and a 30% tax credit. According to the Clean Energy Authority with tax exemptions “Under the California tax code, the state does not consider solar-energy-generating equipment to add value to a piece of property. What that means is that, if you install such equipment on your property, you won’t get taxed for the value it adds.” California is also offering a 30% tax credit to residents until December of 2019 but that credit will drop to 26% after that date.
Incentives from utility companies include regulations like Net Energy Metering (NEM), which allows solar residents to sell excess power that goes back into the grid to the electric companies. The California Solar initiative is a state rebate incentive program (rebate amount Is dependent on size of install) that is paid out over time and based on the performance of the actual system.
In addition, California residents have flocked to the residential power purchase agreements or leases. These allow 3rd parties to own the system and give the home or building a set price for the system itself, or the energy produced over the span of the contract. Contracts typically lasts between 10 – 25 years.
The benefits of these solar incentives have helped increase the number of solar installations tremendously over the past couple years, but the growing popularity of these incentives is limiting the amount of money available for certain programs. Add in the fact that utility prices are steadily increasing and you have yourself a very small window to reap the financial benefits of switching to solar. Don’t be the one to get left behind.