California is widely regarded as one of the best locations for solar power in all of the United States and there are plenty of reasons for this. From the sunny weather to the potential savings, the Golden State has it all for solar customers. Here at YSG, we’ve just recently expanded to the west coast, so now feels like a good time to take a closer look at some of the great residential solar incentives available for those living in California. This will really help us to understand why the Golden State has become the number one solar location in the country.
The biggest boon for California is probably the Federal Investment Solar Tax Credit which is available to those who wish to pursue solar in the state. This tax credit is another of the many reasons why you should buy your solar system outright, as opposed to merely leasing the system. If you decide that you would like to purchase your solar system outright, then the Federal Investment Solar Tax will cover 30% of the total system cost. This is following the deduction of state rebates. However, this great incentive is on the ropes to some extent. It currently covers 30% of the total system cost, however, this figure only runs until the end of 2019, when this percentage will begin to steadily lower. After this, it will drop to 26% in the year 2020. Then, when we arrive in 2021, this great incentive will drop even further to 22%. As ever, the best time to go solar is right now, and this impending drop in the Federal Investment Solar Tax Credit only reinforces that point.
Another excellent statewide incentive available to prospective solar customers involves the process of net metering. With the weather in California ensuring excellent production from both residential and commercial solar systems across the Golden State, owners of solar systems can benefit greatly from the potential bill credits associated with net metering. Essentially, net metering allows consumers of solar to act as something of a solar retailer themselves, receiving bill credits at the retail rate of their utility for extra power they produce.
Of course, utility companies across the United States have also gotten heavily involved in the solar industry by providing their own incentives, and California is no different. The rebates associated with utility companies in the state of California vary depending on which utility company you are a customer of. Some provide rebates in fixed sums based upon the estimated power production of a solar system, others are calculated on a price per watt of energy installed basis.
However, it’s important to remember that not every single one of these incentives or rebates will apply to every prospective solar project and there are a number of variable factors involved. Nonetheless, all prospective solar system owners will have plenty of options and a host of incentives to go solar. So take advantage of your options today and join us in our solar journey on the west coast.
By Shane Croghan