Incentives:
The main solar incentive is the Federal Tax Credit and it is currently at its maximum benefit of 30% in 2019. After this year the tax credit will lower to 26%, then in 2021 it will lower to 22%, and then in 2022 it will lower to just 10%. California used to offer a state incentive but those funds were depleted about 5 years ago. Currently, there is a Self Generation (SGIP) incentive available for battery storage systems but you must be a customer of a participating utility such as SCE. Ask us about current incentives and we’ll be glad to provide the most updated information.
A note about the Federal Tax Credit:
The federal solar tax credit, also known as the investment tax credit (ITC), allows you to deduct 30 percent of the cost of installing a solar energy system from your federal taxes. The ITC applies to both residential and commercial systems, and there is no cap on its value. However, always check with your CPA/Tax advisor to ensure that you will truly benefit from the ITC. If for whatever reason you are unable to use the full benefit this year, you may carry over a portion of the benefit to the following tax year. Ask us about special “Combo” loans that provide provisions for the ITC. For example, with these Combo loans, you make monthly payments on only 70% of the loan total with the understanding that you will “re-amortize” the loan and give the lender the ITC when you receive it (typically within 18 months).