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While california s solar rebates are mostly dried up and its state solar tax credit has not been offered for several years a number of other financial incentives including property tax exemptions and a federal tax credit are still available for purchasers of solar pv systems. The federal government provides a solar tax credit known as the investment tax credit itc that allow homeowners and businesses to deduct a portion of their solar costs from their taxes. The golden state already leads the country in solar energy it has more solar capacity than any other state in the u s and nearly six times more solar than number two state arizona. Under new rules called net energy metering 2 0 you earn credit for every kilowatt hour your solar panels produce whether you use it to power your home or send it to the grid.

Adding solar panels to your california home immediately begins to pay itself back. What are the main california solar tax credits and rebates. The savings possible with solar in california. The average cost of a 7kw residential solar power system in california is approximately 20 000 which the 26 tax credit effectively reduces by 5 200.

Ensure you receive the full 26 solar tax credit and additional incentives for going solar in 2020. The residential renewable energy tax credit as the irs calls it can be an attractive way to save on the significant cost of installing solar panels or roofing. Here are just two examples. For example if the solar panel system costs 10 000 you can get a tax credit of 2 600 and reduce your expenses significantly.

The credit you earn is applied to your bill and offsets your usage over the course of a year. Homeowners have access to rebate programs in many areas of the golden state. 2020 california solar panel rebates net metering in addition to a federal tax credit you may also be entitled to local solar panel rebates. Using this you can claim 26 percent of your new solar energy system s cost and installation as a credit on your federal tax return.

Now california is becoming a leader in energy storage. Both homeowners and businesses qualify for a federal tax credit equal to 26 percent of the cost of their solar panel system minus any cash rebates. California s sgip rebate is one of the best incentives in the country for homeowners who want to install a home battery with their solar panels. The rebate and incentive amounts will vary based on your location and utility company which is something you can discuss with a professional at sunpower by sea bright solar when you contact us for your free consultation.

Check out our top list of incentives to go solar in california.

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