A guide to Federal and State solar tax incentives
If you’ve been thinking about switching to solar energy, there’s no better time than now! Both federal and state incentives make going solar more affordable, helping homeowners, like you, lower your upfront costs and start saving sooner. Whether you're considering solar panels, a battery backup system, or other renewable energy solutions, these incentives can significantly reduce the financial burden of making the switch.
Federal Solar Tax Credit
The Residential Clean Energy Credit currently offers:
Up to 30% tax credit on eligible clean energy systems like solar panels, and battery storage installed from 2022 to 2032.
The credit reduces to up to 26% in 2033
The credit reduces again up to 22% in 2034.
Credits, incentives and qualification requirements do change from time to time, for more information on the most current laws visit the IRS website.
California Solar Initiative
California is known for being a leader in renewable energy, and it shows in its state-level incentives. While the California Solar Initiative (CSI) program officially ended in 2016, the state still offers the NEM program to make solar more accessible.
Net Metering (NEM) – California’s Net Energy Metering program allows homeowners with solar to get credit for the excess energy their solar panels generate. These credits are applied to future electricity bills, effectively reducing the overall cost of electricity over time.
California Solar Tax Exemption
In addition to rebates and credits, California also offers a solar tax exemption. This means that the value of your solar system is not included in the state’s property tax assessments. So while installing solar may increase your home's value, you won’t be penalized with higher property taxes. This is an incredible bonus, as it means that you’ll see the full financial benefits of your investment.
How to Take Advantage of These Incentives
Taking advantage of federal and state incentives can help you make the transition to solar energy with ease. Here’s how you can get started:
Consult with a Solar Provider – Working with an experienced solar company is key. Our experts will help you navigate the available incentives and ensure you qualify for all the benefits.
Get an Energy Audit – An energy audit will assess your home’s energy needs and help you determine the right size and type of system to install.
Apply for Incentives – While we don’t handle the actual application, we provide the support and resources you need to make the process smoother.
Start Saving – Once your system is installed, you can start enjoying lower energy bills, increased home value, and energy independence.
Ready to Jumpstart Your Solar Savings?
The combination of federal tax and state programs makes now the perfect time to invest in solar energy in California. From the generous federal tax credits to the local rebates, you can significantly lower the cost of solar and enjoy the financial and environmental benefits that come with it.
If you’re ready to start saving with solar, contact us today to learn more about how we can help you take full advantage of these incentives. We’re here to guide you every step of the way on your journey to clean, sustainable energy.
