STATE INCENTIVES
California has one of the most aggressive solar electric incentive programs in the world. On January 1, 2007, Governor Arnold Schwarzenegger’s “California Solar Initiative” went into effect, offering 3.2 billion dollars in cash incentives for the installation of Solar Electric systems. The program will help fund 3,000 megawatts of solar electric power by 2017. The program helps fund the installation of solar electric systems for customers that are served by Investor Owned Utilities (SCE, PG&E and SDGE). Other incentive programs are available for customers that are served by Municipal Entities (LADWP, Burbank, Glendale, etc.), see “City and Municipal Incentives”, below.
The incentives come in two forms:
EXPECTED PERFORMANCE BASE INCENTIVE (EPBB)
This one time cash incentive is paid immediately after the installation of the photovoltaic system. The rebate is not taxable. It is based upon the expected performance that the system will deliver. The amount of the incentive is currently $2.20/watt of photovoltaic system installed, which covers about one third of the cost of the installed price. The amount of the incentive reduces with the amount of systems installed statewide. The website that displays the current incentive amount is called the “Trigger Point Tracker”
http://www.sgip-ca.com/ The charts on this page shows the incentive declining by about 30 cents, per step of installed and funded projects. The incentive amount is locked in when your application is made, at whatever rebate amount is in the current step.
PERFORMANCE BASED INCENTIVE (PBI)
This incentive pays the system owner each month for actual system performance (or electricity that the system actually produces), over a period of five years, at 34 cents per kilowatt-hour. Typically, this incentive will pay around 10% more than the EPBB incentive, when fully funded. The incentive amount reduces with the amount of systems installed statewide. The website that displays the current incentive amount is called the “Trigger Point Tracker”
http://www.sgip-ca.com/ The charts on this page shows the incentive declining by about 7 cents, per level of installed and funded projects. The incentive amount is locked in when your application is made, at whatever rebate amount is in the current step.
PROPERTY TAX EXEMPTION
The State of California will not increase your property tax after the installation of the improvement.
TAX DEDUCTION
The State will allow a tax deduction for interest paid on any financing used to install a solar electric system.
