California and Federal Incentives for Solar Installations
Posted on 20. Oct, 2009 by Lori Katz in Solar
The California Solar Initiative
The California Solar Initiative offers cash back for installing solar on your home or business. Customers earn cash rebates for every watt of solar energy generated on homes, businesses, farms, schools, and government and non-profit organizations.
Do I qualify?
If you buy electricity from one of California’s three investor-owned utilities (Pacific Gas and Electric, Southern California Edison, or San Diego Gas & Electric), and you have roof or ground space that gets unobstructed sunlight from 11 a.m. to 6 p.m. year round, you qualify for cash back incentives through the California Solar Initiative. Customers of municipal utilities also qualify for incentives through their municipal service provider.
Earning incentives for solar energy is simple. Just follow these five easy steps, outlined at The California Solar Initiative website.
Step 1: Energy Efficiency Audit
Complete an energy efficiency audit and make sure to take advantage of all the cost-effective ways to save energy and money in your home or business.
Step 2: Find a Solar Installer
Qualified contractors are your key to getting the most productive solar energy system for your home or business.
Step 3: Apply for Rebates
Qualified contractors will handle the CSI application process for your rebates in two or three steps.
Step 4: Install Your System
If you have received your reservation confirmation letter, you’re ready to install your system and interconnect to the utility’s power grid.
Step 5: Claim Your Incentive
When your project is installed and operational you may submit the Incentive Claim Form.
Federal Tax Credits
There’s no need to stop with San Francisco incentives and those from the State. You can also get federal tax credits for the renewable energy from your solar electric system.
On October 3, 2008 H.R.1424, the Emergency Economic Stabilization Act of 2008 was passed. This landmark legislation extends critical Federal Investment Tax Credits for solar customers and other renewable energy projects. This law contains $18 billion in incentives for clean and renewable energy technologies, as well as for energy efficiency improvements.
As part of this legislation, the solar investment tax credit (ITC) has been extended for 8 years through December 31, 2016. Here are the two key provisions for homeowners doing renovations.
- The 30% federal investment tax credit for both residential and commercial solar installations is extended for 8 years through December 31, 2016.
- Eliminates the $2,000 cap on the tax credit for the purchase and installations of solar electric on residential properties.
The Federal Investment Tax Credit for Residential Installations is 30 percent of net system cost, with no cap for any installation after January 1, 2009 It is a one-time credit, but may be carried forward (and possibly back) if not completely useable in the system installation tax year.
Now is the time to use local, state, and federal incentives to help you save money on solar!
Lori Katz Group provides estimates for solar installations of all types. Please contact us for an appointment.
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Jeff
20. Oct, 2009
Wow, this is really great information. Thanks for sharing.