Rebates & Incentives
The rebates and incentives are at an all time high. Our State and Federal Governments have done everything possible to encourage self reliance for both the residential and commercial consumer. There are Federal Tax Credits and State Rebates and Incentives in effect currently.
The Federal Tax Credit is currently up to thirty (30%) of the total solar system installation minus any State rebates and incentives.
The State Rebate is based on a declining step-function of planned and installed residential solar systems. Here's the link to the California Solar Initiative (CSI) Incentive Calculator: http://www.csi-trigger.com/
Note: This is a Declining Step Function which means that as Solar is installed and the Limit is reached for that Step it Drops to the next Step and the Amount of Incentive Drops also. For example: SCE is currently at Step 4 which is $1.90 per Watt. It was at $2.20 per Watt in Step 3. CCSE is already at Step 5 which is $1.55 per Watt. It was at $1.90 per Watt in Step 4.
NOTE: The Incentives will Drop to Zero as soon as the allotted amount of solar megawatts (MW) is installed in CA. This is true of all major electric utilities though they may be at different steps at different times.
FINANCIAL INCENTIVES
FOR
RESIDENTIAL SOLAR PV SYSTEMS
2007-2016
The current financial incentives for the installation of a solar system that uses solar energy to generate electricity (“Solar PV”) in the residential sector presently break down into the following two categories. For a detailed analysis of Financial Incentives on a State-By-State basis, including Federal Programs visit www.dsireusa.org. All Solar PV systems sold by Pacific Sun Technologies, Inc. incorporate components that meet all necessary standards to qualify for applicable financial incentives.
Buy-Down Programs
These are programs typically run at the state or local level. They provide funds toward the cost of purchasing and installing a qualified grid-interactive Solar PV system and are sometimes loosely referred to as “Rebates” (1) .
Participation in these programs in California depends on (1) Whether the home is “new construction” i.e. not yet built, or an existing residence; and (2) The residence location and the utility provider. For most owners of existing homes in California the program is administered by the particular utility company under the California Solar Initiative (“CSI”). The amount of the “Rebate” is based on the size of the PV system as measured in AC Watts as adjusted by a design factor and can be paid in a one-time lump sum payment based on the expected performance of the system (“EPBB”) or monthly installments over five years based on the actual performance of the system (“PBI”). The “Rebates” are now reserved on a first-come, first-served basis on a declining schedule and are not locked-in until a reservation application has been submitted and a Conditional Approval Letter is issued by the Program Administrator. The current value of the “Rebates” can be found at
http://www.csi-trigger.com/ . However, many local utility companies in California (Municipalities) operate their own programs. Pacific Sun Technologies, Inc. will assist you in assessing your particular entitlements and assist you through all stages of the application process.
Federal Tax Credits
The following information is presented for convenience only and is subject to change. Before purchasing a Solar PV system you should consult with a qualified tax professional to determine your particular tax benefits.
Federal Energy Tax Credit. The Energy Policy Act of 2005 (“The Act”) creates a federal energy tax credit equal to 30% of the net cost of the installed system after deducting any Buy-Down Funds, for qualified Solar PV “placed in service” or activated during the period beginning January 1, 2006 and ending December 31, 2008. For residential systems placed in service before December 31, 2008 the tax credit is capped at $2,000.00. In October 2008 new legislation was passed that extended the deadline through 2016 and removed the $2,000 cap on residential systems. For systems placed in service after December 31, 2008 homeowners are entitled to the full 30% federal tax credit.
(1) A hidden benefit is that these funds are, under proper circumstances, not included in the gross income of the recipient/owner of the dwelling unit for federal income tax purposes. 26 USC §136 and IRS Publication 525.
FINANCIAL INCENTIVES FOR COMMERCIAL SOLAR PV SYSTEMS 2007-2016
The current financial incentives for the installation of a solar system that uses solar energy to generate electricity (“Solar PV”) in the commercial/industrial sector presently breaks down into the following three categories. For a detailed analysis of Financial Incentives on a State-By-State basis, including Federal Programs visit www.dsireusa.org. All Solar PV systems sold by Pacific Sun Technologies, Inc. incorporate components that meet all necessary standards to qualify for applicable financial incentives.
Buy-Down Programs
These are programs typically run at the state or local level. They provide funds toward the cost of purchasing and installing a qualified grid-interactive Solar PV system and are sometimes loosely referred to as “Rebates”.
Participation in these programs in California depends on the business location and the utility provider. For most businesses in California the program is administered by the local utility under the California Solar Initiative (“CSI”). Presently the dollar value of commercial “Rebates” under the CSI program varies among the Investor Owned Utilities. For commercial rebates applicable to your utility provider visit www.sgip-ca.com. However, many local utility companies in California operate their own programs. Pacific Sun Technologies, Inc. will assist you in assessing your particular entitlements and assist you through all stages of the application process.
Tax Credits
Tax credits are presently available for commercial Solar PV at the Federal level. The following information is presented for convenience only and is subject to change. Before purchasing a Solar PV system you should consult with a qualified tax professional to determine your particular tax benefits.
The Energy Policy Act of 2005 (“The Act”) creates a Federal Energy Tax Credit of 30% for qualified Solar PV placed in service between January 1, 2006 and December 31, 2008. Under The Act a Solar PV system is considered “purchased” at the time of installation. In 2008 these Federal Tax Credits were extended for an additional 8 years through 2016.
Note: Although there is presently no limit on the amount of Federal Energy Tax Credit that may be earned for the purchase and installation of a commercial Solar PV system under The Act, other tax regulations may limit the amount of tax credit that may be taken during a given year. Consult your tax professional concerning yearly tax credit limitations and applicable carry-forward and possible carry-back use of the Credit.
Depreciation
Under the Modified Accelerated Cost-Recovery System (“MACRS”), businesses can recover investments in Solar PV through depreciation deductions. The current MACRS class for Solar PV is five years. Consult your tax professional about depreciation recovery of your particular investment. Your tax professional may be able to help you implement even more advantageous cost recovery measures.
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