LOS ANGELES— Homeowners ready to invest in solar energy have an array of rebates and incentives they can take advantage of, and these could not have come at a better time! With a nuclear power plant offline, homeowners in Los Angeles and San Diego counties have reason to worry about rolling blackouts during the summer. Investing in solar can ease some of the strain on the grid. (Photo by Susanne Green)
[nggallery id=185 template=carousel images=4][imagebrowser id=185] By Susanne Green May 5, 2012
LOS ANGELES— Homeowners ready to invest in solar energy have an array of rebates and incentives they can take advantage of, and these could not have come at a better time! With a nuclear power plant offline, homeowners in Los Angeles and San Diego counties have reason to worry about rolling blackouts this summer. Investing in solar can ease some of the strain on the grid.
For those considering a new solar array for their homes, Sierra Club Green Home presents this guide to the rebates and credits available in the Southern California region. The three basic rebate categories are:
California Rebates Available through PG&E, SDG&E, and SCE
General Market California Solar Initiative – This program provides incentives for existing and new homes in three Southern California utilities’ territories. The rebate is based on the expected or actual performance of the installed solar system in dollars per watts. Rebate is funded upon completion of the installation and proof of interconnection.
Single-Family Affordable Solar Homes (SASH) – This program aims to provide low-income single-family homeowners with access to photovoltaic systems without increasing monthly expenses. To qualify, applicants’ incomes must be less than or equal to 80% of the Area Median Income in the three utility territories (PG&E, SDG&E, and SCE).
Multi-Family Affordable Solar Homes (MASH) – This program is also specific to the region. It aims to provide low-income multiple-family homeowners with access to photovoltaic systems without increasing monthly expenses.
California Solar Initiative Solar Thermal Program – This program targets the displacement of electric and gas water heating systems with solar water heating. After a successful 18-month pilot program in San Diego, the Solar Thermal Program was implemented in full, and now provides up-front incentives of up to $1875 for qualifying systems.
Federal Rebates
Federal Residential Tax Credit (30%) – This credit, established by the Energy Policy Act of 2005, was expanded in 2009 to an uncapped rebate that includes both the labor and equipment costs of solar systems installed through 2016. The credit applies, in addition to small wind and geothermal heat pumps, to both photovoltaic and solar thermal installations. Use IRS Form 5695, Residential Energy Credits.
Federal Business Energy Investment Credit (30%) – This credit applies to qualified solar installations for businesses through 2016. Use IRS Form 3468, Investment Credits.
Accelerated Business Depreciation – Under federal tax code, commercial renewable energy systems qualify for a five-year Modified Accelerated Cost-Recovery System (MACRS) depreciation schedule. For business solar installations placed in service in 2012, the accelerated depreciation amounts to 50% in 2012, with the remaining depreciation scheduled over the next four years.
Additional Options
In addition to these credits and rebates, a municipality may have negotiated discounted initial pricing on solar projects with specific solar installers. In Los Angeles County, contact Open Neighborhoods Community Solar at (310) 893-3100 for more information. In San Diego, contact San Diego Gas and Electric at (800) 411-7343. For people who have a shaded property, rent a home or apartment, or who are unsure about altering the aesthetics of their homes, membership in a solar cooperative is a good alternative. By pooling resources and buying panels as a group, a community can save money and give subscribers a lower cost than going at it alone. Get in contact with the Los Angeles community solar projects, or learn more about the solar garden in San Diego.Here’s to a summer of more solar and fewer blackouts!
For related articles, see: How Southern California Homeowners Can Prevent Blackouts Community Solar: Bringing People Together for Clean Energy
Susanne Green is a freelance writer who enjoys writing about green homes, purple hearts, and white elephants. She is a finance professional who has travelled on foot through varied countries on six continents and now lives with her daughter in Southern California.
© 2012 SCGH, LLC. All rights reserved.
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