Incentives that improve your buying power!
Local solar rebates
Homeowners have access to rebate programs in many areas of the Golden State. These rebates can pay solar shoppers anywhere from $500 total to $0.95 per watt of installed capacity. Here's one example:
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Rancho Mirage Energy Authority: If you're installing solar on a home in Rancho Mirage, the RMEA will provide a rebate of $500 to cover the cost of your permit fee. The rebate is given after the utility company has granted permission to operate (PTO).
Net metering in CA
Though there have been some recent state battles involving net metering, this incentive is still available and is undoubtedly one of the biggest reason to go solar in California. In the Golden State, any solar homeowner will receive bill credits for their extra solar power at the retail rate from his or her utility. The capacity limit is 5 percent of aggregate customer peak demand for California's net metering program - a statewide incentive.
Electric Vehicles
The federal solar tax credit
Don’t forget about federal solar incentives! With the Investment Tax Credit (ITC), you can reduce the cost of your PV solar energy system by 26 percent. Keep in mind that the ITC applies only to those who buy their PV system outright (either with a cash purchase or solar loan), and that you must have enough income for the tax credit be meaningful.
DAC-SASH
The Disadvantaged Communities - Single-family Solar Homes (DAC-SASH) program provides upfront rebates to income-eligible, single-family homeowners installing solar panels. Homeowners must be customers of Pacific Gas and Electric (PG&E), Southern California Edison (SCE) or San Diego Gas and Electric (SDG&E) to take advantage of the incentive.
Federal Tax Credits
The federal government provides a substantial tax credit for new battery electric and plug-in hybrid EVs, ranging from $2,500 - $7,500, depending on the capacity of the EV’s battery. All battery electric vehicles are eligible for the full $7,500, whereas some plug-in hybrids with smaller batteries receive a reduced amount. Check out the breakdown of tax credit amounts.
Note that the federal EV tax credit amount is affected by your tax liability. For example, if you purchase an EV eligible for $7,500, but you owe only $4,000 in taxes, you will receive a $4,000 credit.
If you lease your EV, the tax credit goes to the manufacturer. However, dealerships often factor the tax credit into the cost of the lease, lowering your down payment or monthly payments. Ask the sales rep how the tax credit is being applied.
Once a manufacturer’s EV sales exceed 200,000, the available tax credit enters a phase out period that begins with full rebate amounts in that quarter and the following quarter. After this grace period, the tax credit is cut in half for the next two quarters. Then the amount is cut in half again for a final two quarters before it is phased out completely. Following is an example of a battery electric vehicle that reached the 200,000 sales mark in July 2020, and the tax credit phase out has begun.
2021 State & Federal
Incentives
