Solar Rebates and Incentives
The benefits of solar panels go far beyond individual electric bill savings. Solar panels are integral to the clean energy transition and lead to a cleaner, more sustainable future for us all.
Because of their far-reaching benefits, the government offers incentives for residential and commercial solar installations.
Taylor Energy can help you take advantage of solar incentives to reduce your upfront costs and improve your return on investment.
Incentives
Federal Solar Tax Credit
Reduces your federal income tax liability by 30% of your solar installation costs.
Eligibility: Residential & commercial solar projects.
Net Energy Metering
Export excess solar power to the electric grid in exchange for a credit on your electric bill.
Eligibility: Residential & commercial solar projects.
Self-Generation Incentive Program
Incentive for energy storage system installation. Rates vary depending on project details and utility company.
Eligibility: PG&E, SoCalGas, SCE & SDG&E residential & commercial customers.
Solar Energy System Property Tax Exclusion
Prevents your property taxes from increasing due to the value solar panels add to your home.
Eligibility: Residential & commercial solar projects.
Federal Solar Tax Credit
The federal solar tax credit (also known as the investment tax credit) is the best solar incentive currently available. It was recently expanded by the Inflation Reduction Act and is now worth 30% of your total solar installation costs! Solar panels, solar batteries, and standalone energy storage systems are eligible for the tax credit.
How Does the Solar Tax Credit Work?
The solar tax credit is a dollar-for-dollar credit that reduces your federal income tax liability for the year you install your solar panels. It’s worth 30% of your solar installation costs with no maximum. If, for example, you installed a $30,000 solar energy system, you would receive a $9,000 tax credit. That credit can be applied to your federal income taxes, reducing what you owe by $9,000. If your credit is worth more than you owe, you can roll the remainder over into the following year.
Net Energy Metering
Net metering is a solar incentive system that allows you to trade electricity with your utility company. When your solar panels generate more electricity than you can use, the excess is exported to the electric grid, and your utility credits your account. When your solar panels are not producing electricity (at night, for example) you can use your credit to offset the cost of electricity you import from the grid.
A Note On NEM 3.0 in California
The California Public Utilities Commission (CPUC) recently approved a new version of net metering, known as NEM 3.0. NEM 3.0 reduces compensation rates for net metering customers and makes battery storage more important than ever. With solar plus storage, you can store the excess electricity your solar panels generate and use it yourself instead of sending it to the grid for a reduced rate. Under NEM 3.0, the payback period for solar plus storage is faster than the payback period for solar panels alone.
Taylor Energy designs custom solar panel and battery storage systems. We can install a system that maximizes your solar savings and ROI under NEM 3.0.
Solar Energy System Property Tax Exclusion
Solar panels typically increase home value in California, but thanks to the Solar Energy System Property Tax Exclusion, they won’t increase your property taxes. Any added value created by your solar panel system will be excluded from your property tax assessment.
Self-Generation Incentive Program
The Self-Generation Incentive Program (SGIP) is an incentive program run by the CPUC that allocates the majority of its funds to solar energy storage systems. Homeowners and businesses that install qualifying battery systems can receive a rebate (rebate amounts vary by utility company and battery size).
The incentive system has a tiered structure, which means rebate amounts are reduced as more batteries are installed. The sooner you apply, the higher your rebate will be. Customers who live in a Tier 3 or Tier 4 fire risk area or live in an area that has experienced two or more PSPS events are eligible for higher rebate amounts.
Find out how much you could save with California solar incentives.
Call (707) 494-6008 or contact us to schedule a free consultation.
Don’t miss out on solar incentives!
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