To help offset the initial costs of installing a photovoltaic solar system many states and utility companies now offer a variety of different options. Cash rebates, property tax exemptions and grants are only a few of the ways that the government is currently helping you increase your return on investment. Currently California businesses can get up to 50% back in cash off the price of a new solar system. Our team of rebate experts is there to inform you of what rebates are available and assist you every step of the way. We take care of paperwork, inspections and utility interconnections so that all you will have to do is relax and watch your meter spin backwards.

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State Cash Incentives

In 2006 the California Solar Initiative (CSI) was created in an attempt to promote efficient solar system design and help offset installation costs of solar electric systems. The state of California created a 10 step incentive program that automatically decrease based on the aggregate capacity of solar installation. So basically, the more systems that are installed the lower the incentives will be.

All incentives are paid per watt meaning that if you have a 25kw system (25,000 watts) and the state was paying $1.75 your rebate would be $43,750. The program started out at step 1 paying $2.50 per watt and will end at step 10 only paying $.20. In an effort to maximize annual output during peak seasons these type of performance based rebates have become more and more common. In California systems that are under 30kw are paid out within 60 days and those that are over are paid monthly over a 5 year period.

Federal Cash Grant

From now until December 31st 2011 the Federal Government is offering a 30% cash rebate for businesses nationwide to go solar. Previously this was offered as a tax credit but now it is paid in cash within 60 days of the time of installation. This offsets a HUGE portion of the installation costs making solar power affordable to businesses of all sizes. Solar projects are also exempt from personal property taxes and qualify for accelerated depreciation over 5 years.

Net Metering

In 1996 California passed laws mandating utility companies to buy back excess power production from solar systems owners. In the past customers either had to store their excess production in expensive battery backup systems or had to forfeits it to the power company. Now with the new net metering laws you can store your power in the grid. Customer accumulates credits (REC’s) which can be used in off peak seasons when your system is under producing. Any unused credits left over are then paid out in cash at the end of the year. This is known as your annual true-up.