Currently, about 85 percent of all solar power system installations in the United States are performed in California. Property owners can now benefit from Federal tax credits, solar rebates, utility savings and low cost financing. As a result, capturing sunshine has become a sound investment for Californians.
Financial Incentives for Solar Power Systems
Never before has solar power systems been so relevant, easy to install, and affordable for San Diego home and commercial property owners. The following financial incentives are helping to make San Diego a much greener place:
- Federal solar tax credit
- State solar energy rebate
- Long-term savings in energy costs, as those operating solar power systems will have little or no cost from San Diego Gas and Electric
The federal solar energy tax credit was renewed in October 2008 with the passage of the Emergency Economic Stabilization Act of 2008. As a provision of this landmark piece of legislation, any property owner who installs solar panel systems or any other renewable energy project will be eligible for a sizable tax credit.
Provisions of the Federal Solar Power Tax Incentive
The solar investment tax credit (ITC) stipulates that:
- Both residential and commercial solar energy installations are entitled to a 30 percent federal investment tax credit. This means 30% of the cost of a solar PV system can be claimed as a credit against tax liability.
- The tax credit is a 1-to-1 offset of tax liability, not to be confused with a write off.
- Unused portions of the tax credit can be carried forward to subsequent years until the credit is exhausted.
Combined, a tax credit and the California state energy rebate may account for up to 40 percent of a property owners’ overall cost to install a solar power system.
For more information about solar tax credits for solar power systems installed in San Diego and other financial incentives regarding solar power systems, contact a specialist at Sullivan Solar Power. We will sit down with you and discuss all your options.