SOLAR INCENTIVES FROM THE FEDERAL GOVERNMENT

For Businesses

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A tax credit equal to 30% of non-subsidized expenses for equipment installed before 2008, with no maximum credit (Energy Policy Act of 2005)

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Grants up to $500,000 and/or guaranteed loans up to $10 million from the USDA with a negotiable interest rate for projects and efficiency improvements by agricultural producers and rural small businesses (2002 Farm Bill, Section 9006)

For Individuals

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A tax credit equal to 30% of non-subsidized expenses for photovoltaic equipment installed before 2008, with a maximum credit of $2,000 that can carry over to a successive tax year, and an equal and separate credit for solar water heating equipment (Energy Policy Act of 2005)

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No tax on subsidies provided by utilities for residential energy conservation systems, likely including solar power (IRS Code Section 136)

SOLAR INCENTIVES FOR VALLEY RESIDENTS OF

Any Location

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Property tax exemption equal to the full value of solar energy collection and distribution systems installed before 2010, or equal to 75% of the value of systems incorporating another energy type (CA Revenue and Taxation Code, Section 73)

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Rebate of up to $3 per watt capacity for grid-connected systems with capacity less than 30 kilowatts, or continuous payment of $0.50 per watt generated for grid-connected systems of any capacity over three years, with a limit of $400,000 (Emerging Renewables Program*)

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Rebate of $2.50 per watt capacity for grid-connected photovoltaic systems with capacity greater than 30 kilowatts but less than 5 megawatts, with incentive payment capped at 1 megawatt (Self-Generation Incentive Program*)

Certain Locations

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LODI: Rebate of $3.40 per watt capacity for residential customers installing photovoltaic systems, with a maximum of $6,800 (Lodi Electric Utility)

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SACRAMENTO: Rebate of $1,500 per electric water heater replaced with a solar water heater, with full loan financing to cover remaining costs (Sacramento Municipal Utility District, Solar Domestic Hot Water Program)

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SACRAMENTO: Rebate of $3 per watt capacity for business customers installing photovoltaic systems with capacity greater than 30 kilowatts, with a maximum of $300,000 (Sacramento Municipal Utility District)

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SACRAMENTO: Rebate of $2.80 per watt capacity for residential customers installing photovoltaic systems, with a maximum of $14,000 (Sacramento Municipal Utility District, PV Pioneers program)

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TURLOCK: Rebate of $4 per watt capacity for residential customers installing photovoltaic systems, with a maximum of $20,000 (Turlock Irrigation District)

*ERP and SGIP are available only to customers of Pacific Gas & Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, or Southern California Water Company as Bear Valley Electric Service.

As several incentive programs decrease the amounts offered to parties taking advantage of other programs at the same time it is strongly advised that you ask your local utility or solar contractor for more details. The above information was selected for your convenience from www.dsireusa.org. DSIRE offers much more information about incentives for all varieties of renewable energy.

Not sure where to find the solar installation professional required or strongly suggested by certain incentive programs? Try www.findsolar.com, a site sponsored in part by the Department of Energy. Find Solar also offers a handy “Solar Estimator” that can gauge the benefits of solar for you, taking into account incentives like those found above.

The incentives listed above enable the installation of a progressive and efficient solar energy system at very little cost. To really maximize the benefit of your solar energy system, ask your utility about net metering programs that allow you to sell electricity you generate back to your provider.