October 8, 2014 | By RGR Marketing Blog

If You Live in California, It May Be Time to Go Solar

If you’re a solar installer, then it’s safe to tell your customers that there truly has never been a better time to go solar. Photovoltaic systems have become much more efficient at powering homes and businesses, and new technological developments have made solar power a viable option – just about any place in the world. All this has happened as prices have continued to plummet.

Another factor sweetening the deal for solar customers is the wide array of state and federal incentives aimed at making clean, green energy a bigger part of our national power supply.

We don’t have room to discuss all of the incentives available in every state here, so we’ll focus on California. Why does the Golden State get all the attention? Well, California takes first place for total solar capacity among U.S. states. In fact, California alone has more solar capacity than all but six nations, so we feel like the state deserves special mention.

California Feed-In Tariffs for Solar Power

California state law stipulates that if a home or business owner’s photovoltaic system generates more electricity than used by the household or business, then they can sell their excess energy back to the big utility companies. This program helps the utilities meet California’s renewable portfolio standard, and makes going solar more affordable than ever. Feed-in tariffs start compensating power generators at above-retail rates, decreasing the rates as the number of adopters increases.

Feed-in tariffs are available in Los Angeles, Palo Alto, and Marin County, California.

Net Metering in California

Net metering is similar to feed-in tariffs, because of the fact that it allows solar customers to feed their excess electricity back into the grid. In turn, this offsets the power that consumers use when their solar systems aren’t producing enough energy. But unlike feed-in tariffs, net metering can be implemented purely as an accounting procedure. There’s no need to install special meters, making it a convenient and easy way to reap the many financial benefits of solar power.

California Solar Initiative Rebates

The remaining rebates are going fast, so time is of the essence with these. In 2007, this state incentive program allocated a budget of nearly $2 billion to incentivize the adoption of solar energy throughout California.

Homes, businesses, non-profits, and other entities can receive rebates directly from their electricity providers for each watt of clean energy they generate. As of this writing, these rebates are available for SDG&E, Pacific Power, SCE, and PG&E customers, but the budget is nearly exhausted. If rebates are still available, educating customers on this program is a great way to create a very real sense of urgency.

Those not served by the power companies listed may also qualify for rebates, and those rebates vary substantially from one utility to the next. They range anywhere from $0.20 per watt to $3.80, so you’ll want to help your clients research their service provider’s specific rebate offerings.

Local Solar Incentives Affecting California Homeowners

In addition to net metering, feed-in tariffs, and the CSI rebates, there may also be substantial local incentives. For example, some localities offer no-cost or expedited permits for sustainable construction. Certain counties even have their own rebate and incentive programs.

Through 2016, California Tax Code allows for a 100% property tax exclusion for new photovoltaic (PV) installations. In order to find out more about this incentive, clients should contact their County Assessor’s office.

Federal Incentives Available to California's Solar Industry

In addition to state, county, and local incentives, California solar customers can take advantage of the Residential Renewable Energy Tax Credit. This Federal incentive offers a tax credit for 30% of the cost of qualified expenditures related to the purchase and installation of sustainable energy systems, including but not limited to solar water heat, photovoltaics, and other solar-electric technologies.

Resources for California Homeowners Who Want to Go Solar

http://www.gosolarcalifornia.ca.gov/csi/index.php

http://www.wholesalesolar.com/california.html

http://cleantechnica.com/2014/01/10/california-solar-incentives-fun-facts/

http://en.wikipedia.org/wiki/Net_metering

http://theenergycollective.com/hermantrabish/326831/solar-s-faceoff-feed-tariff-versus-net-energy-metering

http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F

[Photo Credit: K Johansson]

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