Going Solar in California
The best solar companies, plus tax incentives, rebates & savings in California.
California residents are highly encouraged to switch their source of energy over to the solar variety – in fact, utility companies in the state have to pay many Californians money for the extra electricity their home solar panels generate, due to net metering. California is known to support alternative energies for quite some time now, making it one of the most popular states for home solar. Here are the best solar companies in the state of California, plus an outline of incentives, California state tax credits, federal tax credits, net metering, and financing options available to Californians looking into going solar!
California Solar Tax Incentives
The solar tax incentives in California top the charts!
With a nickname like the Golden State, it’s no surprise California is the #1 solar state in the country. Thanks to California’s many solar incentives and state initiatives, it’s become a leader in clean energy. Here, we will show you all of California’s best incentives – and how you can maximize your energy savings, solar power and money.
California Solar Tax Credits, Incentives & Rebates
Solar Savings & Their Value
Federal Solar Tax Credit (ITC) – 30% savings of the total system cost
Local Utility Solar Rebates – $0.20 to $1.25 per watt
Other Programs Offered – Varies (Net Metering)
Additional Rebates from your Local Utility
Both the Sacramento Municipal Utility District (SMUD) and the Los Angeles Department of Water and Power, offer significant rebates to individuals who have implemented solar energy – based on the estimated performance of their home solar system.
Once the utility company is able to calculate the estimated production of the system, they will give the homeowner a one-time payment good for 20 years of production.
Federal Tax Credits
In addition to California’s stellar solar incentives, you’re also eligible for Federal Investment Tax Credit (ITC), if you’ve purchased your solar system upfront. This tax credit amounts to 30% of the total cost of purchasing your system, after deducting the value of your state’s rebates. That said, it is important to understand that after 2019, ITC credits will begin stepping down from 30%. Any solar system put in place after 12/31/2019, will receive a 26% credit. And, any home solar system put in place after 12/31/2020 will be eligible to receive a 22% credit. That’s why the time to go solar is right now!