Incentives
California Solar Power Rebates and Tax Incentives
Depending on where your home or business is located and who your electrical utility provider is, there are many state, local, and utility company rebates available that incentivise the integration of solar power systems. Along with local, state, and federal tax incentives, thees rebates significantly reduce the cost of implementing residential and commercial solar power systems.
In California, residential and commercial customers receive rebates through the California Solar Initiative (CSI) program and, through 2016, a 30% federal tax credit. Depending on the cost of the system and other site-specific variables, these incentives can typically cover over 40% of the cost of a commercial or residential solar system.
You can also find rebate programs in over 75% of US States, State corporate tax incentives in 50% of US States, personal tax incentives in 44% of US States, and numerous other incentives throughout the country. For a comprehensive guide to solar power incentives and other renewable energy incentives in your area, go to the Database of State Incentives for Renewables & Efficiency (DSIRE) at http://www.dsireusa.org/
Rebates
Depending on the size of your facility, you will qualify for either the Expected Performance Based Buydown (EPBB) or a Performance Based Incentive (PBI) program.. These rebates can cover as much as 40% of the total system cost.
Expected Performance Based Buydown (EPBB)
This program offers upfront rebates for systems less than 100kW in size. The program is part of the California Solar Initiative, which started accepting applications on January 1, 2007
Rebate amounts are determined by a number of factors, including system location, orientation, shading and size. These rebates generally cover 20-35% of the total installed system cost.
Performance Based Incentive Program (PBI)
This program offers rebates based on energy production over the course of 5 years. Rebates are paid to the system owner monthly, based on reported energy production. This program is designed to benefit entities installing larger commercial or public sector projects. Typically, the PBI will cover more than 30% of the installed system cost. For some businesses, this type of program may be more advantageous than the upfront rebate offered by the EPBB. A Borrego Solar Energy Consultant will be able to determine which program is best for you, based on the specifics of your business.
The level of both of these rebate programs will decline as the program reaches scheduled participation milestones. Therefore, the longer a business waits to install a solar electric system, the lower the rebate will be.