Federal and Local Incentives
In 2018 the Federal government offered 30% initial tax incentives for both home and commercial solar installations. This rebate is on a sliding scale and will decrease to 26% in 2019 and 22% in 2020.
Commercial property owners also benefit from accelerated depreciation of up to 85% of initial Solar System cost in the first five years.
Federal Tax Credits for All-Electric and Plug-in Hybrid Vehicles
Federal Tax Credit Up To $7,500!
All-electric and plug-in hybrid cars purchased in or after 2010 may be eligible for a federal income tax credit of up to $7,500. The credit amount will vary based on the capacity of the battery used to power the vehicle. State and local incentives may also apply.
Small neighborhood electric vehicles do not qualify for this credit, but they may be eligible for another loan.
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 are just two examples:
- Los Angeles Department of Water and Power: If you’re a customer of LADWP, you’re eligible for a rebate of $0.25/W of installed solar power, which means you could get nearly $1,500 back when you install a standard 6kW system. Like Silicon Valley Power’s incentive, the value of the rebate drops as more people participate in the program.
- 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 refund is issued after the utility company has granted permission to operate (PTO).
PACE solar financing: a leading CA solar tax credit
California has a great Property Assessed Clean Energy (PACE)offering in many cities and counties known as the Home Energy Renovation Opportunity (HERO) Financing Program. PACE financing allows homeowners to finance their PV installation and pay it back through their property taxes. In addition to the HERO program, there are also many county specific versions of this program such as Sonoma County’s Energy Independence Program– make sure to investigate the incentives available in your county.
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.
Qualified Plug-In Electric Drive Motor Vehicles (IRC 30D)
Internal Revenue Service (IRS)
⦁ Plug-In Electric Drive Vehicle Credit (IRC 30D)
⦁ Notice 2009-89: New Qualified Plug-in Electric Drive Motor Vehicle Credit
⦁ Notice 2009-54: Qualified Plug-in Electric Vehicle Credit
⦁ Notice 2009-58: Qualified Plug-In Electric Vehicle Credit Under Section 30
⦁ Energy Incentives for Individuals in the American Recovery and Reinvestment Act
- 30% for systems placed in service by 12.31.2019
- 30% for orders placed in service after 12.31.2019 and before 01.01.2021
- 26% for systems placed in service after 12.31.2020 and before 01.01.2022
- There is no maximum credit for systems placed in service after 2008
- Orders must be placed in service on between January 2016 and before Dec 31. 2021
- The home served by the system does not have to be the taxpayers’ principal residence
The information on this page should not be viewed as an official or legally binding document. Other requirements or exceptions may apply. For more detailed information, please consult an IRS tax representative and/or official IRS publications.