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Northern California State
& Federal Incentives Help
You Get Connected
Northern California State rebates and
federal tax credits make clean solar energy more affordable than ever.
Commercial solar installations can now take their 30% Federal Tax
Credit in the form of a GRANT, which increases Solar's
attractiveness! Solar now makes FINANCIAL sense ~ more than
ever before!
Federal
The Energy Policy Act of 2005 went into effect upon the President’s approval in
August of 2005. The Act attempted to combat growing energy problems, to change
previous United States energy policy, and to entice consumers to become more
energy efficient. The Act provided tax incentives and loan guarantees for energy
production of various types, enabling solar power consumers to lessen the
financial burden that is associated with becoming energy efficient. However,
with the ever-growing interest in solar energy and the ongoing rise in
electricity costs, the Act became obsolete. Thus, in 2008, the federal
government passed the Emergency Economic Stabilization Act. This Act amended the
2005 Act, to include modifications and extensions of many consumer tax rebates
and incentives.
The 2008 Act provides homeowners and business owners a federal tax credit for
using solar power in their home. Residential and business owners who install
solar electric systems can receive a 30% tax credit for systems placed in
service from January 1, 2006 through December 31, 2016. There is no monetary cap
for residential or commercial installations. Also, contrary to popular belief,
the home served by the solar energy system does not have to be the taxpayer’s
principal residence. Essentially, the purchase of a solar energy system makes
you eligible for a tax credit equal to 30% of the cost of your solar system,
including installation.More information about Federal Tax Incentives can be found at
Database of State Incentives for Renewables & Efficiency (DSIRE).
Northern California
In addition to federal tax incentives, some solar power consumers may be
eligible for state, county, and city rebates. The major rebate plan is the
California Solar Initiative.
(Click Here to Download the CA Solar Initiative Handbook) This initiative
gives $2.9 billion in tax rebates for solar installation. The Initiative is part
of California’s “Go Solar California” campaign. California has offered solar
energy rebates to customers in certain territories for many years, but with the
growth of solar energy and high utility costs, past rebates were insufficient.
As a result, California enhanced its rebate programs to include two modified
solar incentive and rebate programs. The new Initiative also included an
enhancement in the way solar incentives are calculated. Incentive levels are now
based on solar energy performance factors such as size, installation angle,
tilt, and location. This modification maximizes rewards for owners of systems
that provide maximum solar generation. The California Solar Initiative consists
of two payment types: Expected Performance-Based Buy-Down, or EPBB, and
Performance Based Incentive, or PBI. The former pays solar consumers their
incentive a one-time, up-front incentive. It is generally for smaller solar
energy system consumers. The latter payment type, generally for consumers of
larger solar power systems, pays the consumer over a five year period.
In addition to the California Solar Initiative, there are several other state,
city and county solar power incentives and rebates available for homeowners and
business owners. Brief examples of other incentives and rebates available to
solar power consumers located in California include the California Property Tax
Exemption for qualified solar energy systems.
The California Property Tax Exemption allows a property tax exclusion for
certain types of solar energy systems installed between January 1, 1999, and
December 31, 2016. Qualifying active solar energy systems are defined as those
that "are thermally isolated from living space or any other area where the
energy is used, to provide for the collection, storage, or distribution of solar
energy." These include photovoltaic (PV) systems.
Several other rebates and incentives are available to those wishing to become
more energy efficient and cost efficient. For more information about Northern California
solar energy incentives and rebates, visit the
Database of State Incentives for Renewables & Efficiency.
Contact
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Placer MPower
Program
In February of 2010, Placer County and surrounding counties
of Northern California will roll out a new
program that will allow the average home owner and business owner to add solar
power to their house or businesses under California’s new AB 811 initiative.
California’s AB 811 program, which was approved last July, was designed to allow
property owners to finance the installation of renewable energy systems and have
the financing incorporated into their property tax payment.
Contact Lifetime Solar Today to Find Out More about Placer
MPower and AB 811
Essentially, the Placer MPower Program allows
Northern California owners to install solar power
systems on their homes or businesses and add the payment to their property tax
payment with one of the big incentives being that the payment will be
transferred to a new owner in the event the property is sold. Right now, if a
property owner wants to purchase a solar power system for their house or
business, they have a few different options. They can take out a home equity
loan or a line of credit, use existing credit cards, or utilize their personal
savings. With a solar power system running anywhere from $25,000 to $50,000+,
these options may be less than ideal, and all of these options do not allow the
home or business owner to transfer the cost of the unit once the property is
sold which leaves them paying for a unit they no longer own and from which they
no longer benefit. Of course, a solar system does increase the value of a home
or business, so in the event of a sale the owner may be able to recoup some of
the system costs.
With the cost of the solar power unit incorporated into the property tax
payment, the owner is able to spread out the cost of the unit over 10 to 20
years while receiving the benefit of a lower utility bill and then transfer that
savings to the new owner in the event of a sale of the property. If the owner
stays in the home or business past 10 to 20 years, he will have paid for the
system and then be able to continue to reap the benefits of a lower Northern
California energy bill. |
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