Incentives for solar systems in California
Making the move to solar power is a big decision, whether it’s for residential or commercial property. And it’s understandable. The technical aspects of solar systems can seem daunting, putting many people off the idea. Additionally, the setup costs can seem expensive, although the majority of systems pay for themselves and end up saving you money in the long run.
But solar power is a vital part of a clean energy future. The world cannot rely on fossil fuels forever, and solar power is one of the most accessible, reliable, and cost-effective forms of renewable energy available today.
The cost of solar has fallen dramatically in just a few years, and with rising global energy prices squeezing households, the payback time for solar is significantly shorter than many people realize. To add to this, the State of California has the ideal climate for solar power generation, with high levels of sunshine year-round. The state also offers a range of solar incentives to encourage households and businesses to embrace solar.
In this post, we take a look at California solar incentives to help you understand what’s available, what you may qualify for, and why now is the perfect time to invest in solar in California.
What are solar incentives?
The government of California, like governments around the world, wants people to adopt solar power. To encourage this, there are various solar incentives in California aimed at reducing the financial cost of purchasing and installing a solar system. And incentives work. The cheaper solar becomes, the more people and businesses will buy it.
For the purposes of this article, we’ll look at a range of incentives including rebates and tax credits. Below we detail the most popular schemes that can help residential and commercial buyers get solar for less.
California solar incentives
Let’s look at some of the key solar incentives California has on offer.
Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program
The Single-Family Solar Homes (DAC-SASH) program offers upfront rebates to single-family homeowners installing solar panels on their property. To qualify, the homeowners must meet the income threshold and be customers of either Pacific Gas and Electric (PG&E), San Diego Gas and Electric (SDG&E), or Southern California Edison (SCE).
Self-Generation Incentive Program (SGIP)
This incentive is a rebate for purchasing and installing a rooftop solar panel system and a solar battery. The size of the rebate differs depending on several factors, such as the storage capacity of the system. It is also a tiered program, with the incentive declining in size as more people in California install solar systems.
Active solar energy system exclusion
This scheme prevents property taxes from increasing as a result of increased home value resulting from the installation of a solar system. Under normal circumstances, the increased tax burden can act as a deterrent to some people considering solar, so this addresses that issue.
Localized incentive schemes
Rancho Mirage Energy Authority (RMEA) rebate
People installing solar in the city of Rancho Mirage are entitled to a $500 rebate to help with the cost of purchasing and installing the equipment.
Sacramento Municipal Utility District (SMUD) rebate
SMUD customers can access a $150 rebate when installing residential solar systems.
California net-metering program
The State of California's net-metering program is possibly the most significant solar incentive in California. This program provides residents with financial credit when they feed the grid with power generated from a residential solar system.
In addition to encouraging people to invest in solar, this scheme also reduces the load on the grid during periods of high usage.
Federal solar tax credit
People in California who own their own solar system may be eligible for a federal solar tax credit. This can reduce the cost of the system by up to 26%, making it a significant incentive. While this is a federal rather than state-level incentive, residents of California can be eligible.
Should I get solar panels in California?
The decision of whether or not to purchase a solar system in California will be different for everyone and is influenced by a range of factors. However, it’s fair to say that now is probably the best time ever to invest in solar in California.
Not only does the state boast extremely high levels of sunshine, but the broad range of incentives in California makes investing in solar more cost-effective than in many other areas. Additionally, recent advancements in solar technology have made solar panels, inverters, and energy storage options more affordable than they have ever been.
Hoymiles solar technology: Powering a cleaner future
Hoymiles provides a wide range of innovative, reliable, and cost-effective solar technology products, including advanced microinverters, to offer open energy for all.
Get in touch to learn more about our solar solutions and how they can help you to achieve a clean energy future.