Government Tax Incentives & Rebates
The California Solar Initiative – The State Rebate for Solar
The CSI is a huge part of the California Million Solar Roofs program. CSI was formulated to create 3000MW of new solar power by 2017. The California Public Utilities Commission administers the bulk of the program and has earmarked funding for existing homes, new and existing businesses, and public entities. The California Energy Commission manages the remainder – a 10-year, $400 million program to encourage solar in new home construction through its New Solar Homes Partnership.
Here’s a hypothetical estimate of
California Solar Electric Home Savings
Let’s say you are paying $0.32/kWh right now and the following applied.
• You use: 5th Tier 600kWh of electricity a monthly, or about a $130/month electric bill.
• You’ll need: a 4kW (4000 watt) system to cover 93% of your electric bill.
• Cost: The average installed price with perhaps some add-ons is going to be around $7/watt , including panels and everything. Since this is based on prices in 2010, it could be less now.
• $5/watt x 4000 watts= $20,000 before Tax Incentives & Rebates (Don’t Panic!)
• Subtract $6,000 / 30% for a Federal Tax Credit.
• Net Cost: $14,000.
• Years to Payback: 9.3 years (based on 10% yearly rise in utility rates.) Keep in mind that your solar panels last 25-30 years!
• Your new 12 month average electric bill: $21/month.
• Carbon dioxide emissions saved from going into the atmosphere: 7,335 lbs per year or the equivalent of planting .62 acres of trees a year.
Residential Energy-Efficient Federaly Tax Credit
for Solar Energy Systems through 2016
Tax Credit: 30% of cost with no upper limit
Expires: December 31, 2016
Details: Existing homes & new construction qualify. Both principal residences and second homes qualify. Rentals do not qualify.
Requirements: At least half of the energy generated by the “qualifying property” must come from the sun. The system must be certified by the Solar Rating and Certification Corporation (SRCC) or a comparable entity endorsed by the government of the state in which the property is installed.
Note: The credit is not available for expenses for swimming pools or hot tubs. The water must be used in the dwelling. Photovoltaic systems must provide electricity for the residence, and must meet applicable fire and electrical code requirement. Tax Credit includes installation costs.
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