Federal Solar Investment Tax Credit (30%) Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

Self-Generation Incentive (SGIP) Program The Self-Generation Incentive Program (SGIP) is a California Public Utilities Commission (CPUC) program that offers excellent rebates for installing energy storage in your home that can provide power in the event of a blackout. The incentive program applies to PG&E, SCE, SoCalGas, and SDG&E customers. The incentive amount depends on specific eligibility criteria, so reach out to one of our solar experts and we will help you understand which program is right for you.

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. California’s Net Metering 2.0 allows almost everyone in the state to connect with their utility company and earn credits for excess generation based on the retail rate of electricity minus “non-bypassable charges.” These small fees pay for essential grid maintenance and low-income assistance programs.

Property Tax Exclusion Adding a solar energy system to your home will not increase your property taxes.

Sales Tax Exemption In California, no sales tax will be added to the purchase of your solar system.

Silicone Valley Power – Low Income Solar Grant Program Silicon Valley Power’s Low Income Solar Grant Program provides qualified homeowners with a grant of $3.50 per watt for solar systems up to a maximum of $10,500.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.