CA Solar Tax Credits & Incentives
Federal Tax Credits & California Rebates for Solar Installation
Going solar doesn't just decrease your monthly energy bill and increase the overall value of your home; it also has federal tax incentives. In California, you are entitled to a federal investment tax credit when you purchase and install an eligible solar panel system, which includes the solar photovoltaic systems offered by SunPower® by Sea Bright Solar.
For residential homeowners, this tax credit covers 30% of the total cost.
How Does the Federal Solar Tax Credit Save You Money?
The federal tax credit, also known as the Federal Investment Tax Credit, or ITC, allows you to claim up to 30 percent of the total cost you pay to install solar panels from your federal tax burden for the year. This allows you to make the investment in your home or business and know that the rewards will come back to you later in the form of both reduced energy costs and a tremendously-reduced tax burden.
Is There a Limit to How Much I Can Claim for My Solar Panel Installation?
This credit has no limit, meaning you can claim up to 30 percent of the cost of any qualifying solar panel system purchase, no matter how much it costs, however, after 2019 is over, the tax credit decreases each year and will be completely gone by the end of 2022.
Does This Federal Tax Credit Expire?
Yes - it is very important that you act quickly before the Investment Tax Credit (ITC) is no longer redeemable. Below we have laid out the timeline for getting the most out of your tax credit, as it reduces in value every year after 2019.
- 30% tax credit extended for solar PV systems installed by 12/31/2019
- 26% tax credit extended for solar PV systems installed between 1/1/2020-12/31/2020
- 22% tax credit extended for solar PV systems installed between 1/1/2021-12/31/2021
- 10% tax credit extended for solar PV systems installed between 1/1/2022-12/31/2022
After January 1, 2023, the solar tax credit will no longer be an available advantage for homeowners.
How Does the Federal Solar Tax Credit Work?
Let’s look at a few examples. Let’s say you installed a solar panel system for $10,000 in 2019 and have a federal tax burden of $5,000. When you apply for this credit, you can claim up to 30 percent of the cost of your panels as a credit, or up to $3,000 in this instance. That reduces your tax burden to just $2,000!
Furthermore, if the panel system has a price tag of $20,000, you can claim up to $6,000 of the cost as a tax credit. Because it eliminates your entire $5,000 burden, you would be left with an extra $1,000, which you may be able to roll over into the following year’s tax credit. As a result, you’ll likely get a significant refund check back once you’ve filed your return.
2019 California Solar Panel Rebates & Net Metering
In addition to a federal tax credit, you may also be entitled to state and local solar panel rebates. 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. This is called net metering and is something that is undoubtedly a major benefit of switching to solar in California.
Below are some of the top net metering programs California has to offer:
Solar Incentives Unique to Sea Bright Solar
What truly sets SunPower® by Sea Bright Solar apart is the number of competitive incentives and benefits we offer our customers. We believe that while any company can help their customers utilize these federal and state incentives, we are the only ones who provide their customers with the best possible experience both before and after they sign on with us.
SunPower® by Sea Bright Solar customers receive the following perks:
- Credit Toward Your Lease/Purchase: From time to time we have credits for first-time solar buyers up to $500. Ask your solar consultant if this is available.
- Referral bonuses: Refer a friend over to us and receive a $500 bonus when they sign their contract.
- Zero-percent financing: We offer competitive financing options for panel systems, including zero-percent interest for qualifying customers.
- Warranties: We offer some of the best warranties in the industry, including a 25-year warranty on all panels, solar racks, and inverters, plus 10 years on all installation.
- Solar parties: Love your solar panels by Sea Bright Solar? Fantastic, now host a party to tell your friends and family about powering their world with the sun. We cover the drinks and food.
Are You Ready to Switch to Solar? Call Us for a Free Consultation.
At SunPower® by Sea Bright Solar we do solar right. Having served the local community for nearly a decade, our highly-trained professionals can help make the change to solar both efficient and affordable.
- Why Choose Sea Bright?
- We offer a 25-year warranty on all of our solar panels
- We have been serving the local community since 2007
- Our company is accredited by the Better Business Bureau
- We offer full, partial, and zero-down payment options
Not only can the federal tax credit be used to recoup 30% of your equipment and installation costs for an unlimited amount, but we can customize your monthly payments to meet almost any budget.
Learn more about the benefits of solar energy - call SunPower by Sea Bright Solar at (909) 480-3783.