California is one of the best places for solar installation. You might think it’s because the state is so blessed with sunny weather, and you’d be partially correct, but that’s not the only reason. In fact, California has a solar incentive program that’s one of the best in the nation. Let’s take a look at some of the benefits available for residential solar installation in the Golden State.
- 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, which can be used to reduce 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 the 26 percent. However, it’s expected to drop to 22 percent in 2023 and go away completely in 2024.
- Another program is the Self–Generation Incentive Program (SGIP). This provides a rebate for buying and installing a solar battery and a rooftop panel system.
- Californians can also qualify for 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 amount of value that device adds to the property. Essentially, 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 credits to homeowners for the extra electricity solar panels contribute to the energy grid. If you install solar panels on your home, your utility company can bill you for your 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 vary based on your utility company’s policies.
With all of these incentives in place, solar installation just makes sense! If you’re looking for a solar energy installer with quick installation times and a great reputation, contact Sunlogix Energy. A leading full-service solar company at the forefront of creating a sustainable planet, powered by the sun, we’ve been voted the Best Solar Company in the Desert by the Coachella community 2 years running. We offer residential and commercial solar solutions for our customers, always striving to provide full customer satisfaction by offering premium products and professional installation at an exceptional value. Focused on using renewable energy to create a cleaner earth, we customize solar solutions for our clients, as well as educating them on the long-term and immediate benefits provided by solar power. Call 888-844-3808 for more information or visit our website to request a free estimate today!