California Solar Power Incentives, Rebates, and Tax Credits.

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[...] California [...]

bob farschi

Very nice and practical…easy to use too!

Great job, David

JimmyD

Great site!!

I’m installing a large PV system on my house in Oceanside, Ca. It should generate over 10,000kWh/year!!!

I’m hosting a web site to chronicle the installation. If you want to check it out, it’s at:

http://www.jjhamilton.com/solar.html

Go green!!

JimmyD

[...] California [...]

[...] California [...]

[...] California [...]

Brian

Deciding to buy Solar?

When deciding to buy Solar consider this FACT! Your decision is whether or not you want to own your sytem and lock in a lower cost of power for your family.

Or do you want to rent power from a utility and pay them annual energy increases. It REALLY is that simple. Take advantage of Federal Tax credits and State incentives to lower your up front cost. Once your system is paid for it is the equivalent of getting a dividend check each month for making a good investment. Yes I do Have a System on my house, it produces 70-90% of our electric usage.

Bradley

In your example, shouldn’t you take the EPBB rebate off the projected total cost before you calculate the 30% Fed Tax credit??? i.e. shouldn’t the Fed Tax rebate be calculated as follows:

6kW system…

$48,000 – ($1.55 x 6000) = $38,7oo

then

$38,700 x 0.3 = $11,610

Final est. price: $38,700 – 11,610 = $27,090

“…for both equipment and installation is a mid-range estimate of about $8/watt or $48,000, offset by the 30% federal tax credit and the $1.55/watt EPBB rebate. So, subtract the federal tax credit and we’re down to $33,600 ($48,000 * .30 = $14,400 tax credit).

Next, let’s calculate the EPBB rebate at $1.55/watt. Since we’re installing 6000 watts (6kW system) the rebate amounts to $9,300 (6000 * $1.55 = $9,300). This comes as a check directly back to you or your installer who will reduce the cost by this amount. Now, our net initial cost amounts to $24,300.”

Tor a.k.a. "Solar Fred"

Hey, Bradley,

You’re formula may be right…or not. The truth is that the IRS has not given specific tax guidance yet about whether to take the 30% before the rebate or after. There is also a question of whether the tax credit is counted as “income” and therefore taxable or rather it is simply a reduction in cost, and therefore not taxable.

When the Feds do come out with guidance for 2009 with its new tax forms, the first year that the 30% uncapped tax credit is eligible, we’ll write a post. Meanwhile, you should not trust us for final word, ’cause we’re just 3 solar dudes, not tax dudes. Better to confirm these matters with a tax pro. Hopefully, tax software will also incorporate these issues as well.

[...] just updated our State of California Solar page to include more current solar pricing trends and rebates as of 9-2-09. This time, in addition to [...]

[...] California [...]

Tor a.k.a. "Solar Fred"

This is an email from a reader that wrote to me about some important information for Southern California Edison (SCE) rate customers. Please take note and take action if you can.

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Fred,

I read your recent post about net metering and found it interesting. There is a related matter going on that I thought I would bring to your attention.

I am in SCE service area and am a net metering customer with a nominal 6 kW solar array that I have had for more than 5 yrs. I am on rate sch D-1 which I am sure you are aware of. As of Oct 1, SCE is no longer allowing new applications for this rate schedule. Instead, SCE has introduced a new rate schedule. This is called Tiered time-of-use and has 2 tiers, below 130% of baseline and above 130% of base line. The difference between these 2 tiers is significant with the summer peak Tier II at $0.69/kWh.

I am sure you are aware of the “SmartConnect” program SCE has recently implemented and their desire to install time-of-use capable meters to their 5 mil + customers. A component of this program is the new Tiered time-of-Use Rate Schedule. I was told today by a SCE rep at the Time-of-use customer serv number that the D-1 and D-2 rate schedule customers will be required to change to this tiered schedule after the Smartconnect plan is implemented. For most grid-tied users, I think the new Tiered time-of-use rates will result in significant summer electric bill increases. I have done some research and am surprised that there is not more info on this. Perhaps it is due to the relative limited # of TOU customers.

I have asked SCE reps what will be the option for net metered customers that will be significantly impacted by the summer Tiered TOU schedules. The rep didn’t really have an answer. Another impact the rep related to me is that SCE is proposing a change in the baseline and are reducing the baseline zones. She said the typical baseline would be reduced but she didn’t know to what extent. This could be a “double whammy” for net metering customers when the tiered schedule is implemented.

I have enjoyed your emails and website over the years. I think a posting or article re: the proposed Tiered TOU rates would get the word out. I think a lot of existing Sch D-1 users would find this info of use.

Thanks

Gary Laughlin

Michael

Great articles… I plan on reading everything you post on your site. I’m a new solar sales engineer.

FYI California “steps” have been updated since your last update..

i.e.
PGE Residential 6

Tor a.k.a. "Solar Fred"

Thanks for the update, Michael. We try to keep things updated here, but we’re keeping track of 50 states plus, DC, so it’s great to have your help, and we hope you find our site useful for your solar career.

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[...] California [...]

marc Michon

NICE site
11/22/09 PG&E in step 6 $ 1.10 watt