With one of the sunniest climates in the world, it’s no surprise that California is the No. 1 solar state in the country.1 The Golden State is setting the gold standard for clean energy policy,2 with an ambitious goal to run on 100% carbon-free energy by 2045.
**Customer’s ability to monetize rebates, incentives and tax credits depends on several factors, including, without limitation, continued state subsidization of these policies, the applicable Solar Freedom USA product type, and whether a customer purchases or leases a solar system from Solar Freedom USA.
There’s no better place to purchase a solar battery than California and no better time than now. The state’s Self-Generation Incentive Program (SGIP) offers rebates to California households for a solar battery and has been extended to 2025.3
Customers of PG&E, SCE, SoCalGas and SDG&E utilities are eligible for this rebate, which can be as high as $400 per kilowatt-hour.4 Rebate amounts will depend on battery size and time of purchase. As more batteries are installed, the rebate amount will decline. Visit the SGIP Program Metrics dashboard to see how much funding is currently available. To get the most out of California’s SGIP, the time to go solar is now. Learn more about Solar Freedom USA’s Brightbox home battery.
Some municipal utilities like Sacramento Municipal Utility District (SMUD)7 offer solar rebates based on the estimated performance of the home solar system. Go Solar California lists electric companies that provide solar panels and/or solar battery storage incentive programs.
Homeowners understand the value of property tax exemptions, so it’s good news that California is offering a tax exemption for residential solar systems until the end of 2024.8 And since purchased solar systems may increase the value of your home by up to $15,000 on average,9 you’ll get even more bang for your buck if you decide to move.
The Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment10 is a welcome addition to the other incentives available in the Golden State. That means you can pocket the extra 7.25% state sales tax you would normally pay when you buy a home solar system and battery.
You’re also eligible for the federal solar tax credit if you buy your own home solar system outright. Homeowners who have a solar energy system installed through December 31, 2020 will be eligible for the 26% federal solar tax credit for the final cost of the system.12 That means if you purchase a 6-kilowatt system for $18,300, you’ll pay $12,810 after you receive your tax credit.
The federal solar tax credit is scheduled to step down to 26% in 2020, then 22% in 2021. After 2021, the tax credit for residential solar ends. Learn more about federal solar incentives.
At Solar Freedom USA, we understand that everyone’s financial situation is different. Whether you want to own your system and your solar incentives or simplify them with a solar lease for as little as $0 down, we offer a range of flexible financing options—all of which help you claim your slice of California sun.
Join over a quarter million American households who have gone solar with Solar Freedom USA. Whenever you’re ready, our solar advisors are here for you. To get started, get your free quote today.