Rebates and Incentives
Solar Electric Federal Tax Credits, or Solar Investment Tax Credit (ITC)
- A tax credit is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government.
- Systems must be placed in service before December 31, 2021 (30% until 2019, then 26% in 2020 and 22% in 2021). After 2023, the residential credit will drop to zero.
- A taxpayer may claim a credit of 30% of qualified expenditures for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer.
- There is no maximum credit for systems placed in service after 2008.
HOA/Commercial Solar Pool Systems
Rebates are available for commercial swimming pools beginning January 14, 2014 through the CSI program.
This is a tiered program. Right now, the rebates are $5.00 per displaced therm for So Cal Gas and SDG&E customers. Once the funds are used up, the next level will be $4.00 per displaced therm.
Solar Hot Water System Federal Tax Credits
- Systems must be placed in service on or after January 1, 2006.
- The Solar Rating Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed must certify equipment for performance.
- At least half the energy used to heat the dwelling’s water must be from solar in order for the solar water-heating property expenditures to be eligible.
- The home served by the system does not have to be the taxpayer’s principal residence.
Incentives are now available for Solar Water-Heating Systems
The California Solar Initiative (CSI) – Thermal Program offers up to 50% off of the total system cost in the form of a rebate for solar water heating systems on single-family homes. Multifamily and Commercial properties qualify for rebates of up to $500,000. Save money on gas or electricity bills by harnessing the heat of the sun.
The amount of the incentive is determined by the number of therms that are displaced annually.
There is no maximum credit for systems placed in service after 2008.