Take Advantage of Solar Rebates and Tax Credits

Solar incentives reduce the out-of-pocket cost of of solar electricity systems by approximately 42% and solar water heating systems by 30%.

California Solar Initiative Rebate

The CSI Rebate was created to make going solar more attractive to consumers. It typically covers about 17% of the total system cost and comes in the form of a rebate check (from PG&E in the northern California area). If a solar energy system cost $20,000 the CSI Rebate would be approximately $3,400, reducing the actual cost of the system to $16,600. The rebate amount is calculated based on your system’s expected energy production over a 5-year span. Please note, Allterra will complete all the necessary CSI Rebate paperwork on your behalf.

Solar PV – 30% Federal Tax Credit

30% of the cost of your solar energy system is eligible for a Federal Tax Credit, which directly reduces your end-of-year tax bill. Continuing the example above, if a solar PV system cost was $16,600 ($20,000 – $3,400 rebate = $16,600), the 30% Tax Credit would be $4,980. Therefore, after the CSI Rebate and 30% Tax Credit, the final out-of-pocket cost for the solar energy system is $11,620.

Solar Thermal – 30% Federal Tax Credit

Solar Thermal Water Heating systems are eligible for a 30% Federal Tax Credit, making Solar Thermal a great investment. A system that cost $9,000 would be eligible for a $2,700 Tax Credit, bringing the final out-of-pocket cost down to $6,300.

Solar Market Future

Eventually, homeowners and businesses will be able to sell their excess energy back to “The Grid”. This will provide the incentive for people to conserve energy and generate an excess, which helps our environmental and rewards efficiency. The countries that have already adopted this model, like Germany, have become world leaders in green energy technology.