California Solar Energy Incentives and Rebates
California is one of the best places for solar installation, and not just because the state gets sunny weather much of the year. It is because California has one of the best solar incentive programs in the nation, with many options to work with. Let’s take a look at some of the benefits available for residential solar installation in the Golden State.
5 Reasons to Go Solar in California in 2022
- Perhaps the most well-known solar tax credit is the Federal Solar Investment Tax Credit. Currently, this incentive offers a 26 percent federal tax credit on solar installation, reducing the homeowner’s federal income tax. This rate will not be in place indefinitely, however. If you hire a solar panel installer to place your panels before the end of 2022, you’ll still get 26 percent. However, it is expected to drop to 22 percent in 2023 and go away completely in 2024.
- The Self–Generation Incentive Program (SGIP). This provides a rebate for buying and installing a solar battery and a rooftop panel system.
- The Solar Energy System Property Tax Exclusion. Installing a solar or wind-powered device that produces energy for a residence or place of business entitles the owner to an exemption for the value that device adds to the property. This means that if installing solar panels or other solar-powered devices raises your property value, you won’t have to pay additional taxes until 2025. This is particularly beneficial for those who need a larger system to offset their electricity usage.
- Lower-income homeowners may qualify for the DAC–SASH program. The Disadvantaged Communities Single-Family Affordable Solar Homes program increases the opportunities for people in disadvantaged communities to take advantage of solar energy. This program offers up to $3 per watt to eligible homeowners to help offset the cost of a solar energy system.
- Net energy metering provides credit to homeowners for the extra electricity solar panels contribute to the energy grid. If you install solar panels on your home, the utility company can bill you for net usage and give you credits for the extra electricity generated by your solar panels. At the end of the year, you’ll be compensated for your surplus credits at “fair market value,” based on the 12-month rolling average of the market rate for electricity. The value of these credits varies based on your utility company’s policies.
Solar Installation is the First Step in Saving: Choose SunLogix
With all of these incentives in place, solar installation makes sense! If you’re looking for a solar energy installer with quick installation times and a great reputation, contact Sunlogix Energy. Our Coachella Valley solar installers can help you take advantage of California solar incentives, tax credits, and rebates.
Contact SunLogix to get started saving today!