The State of California has a
rebate incentive program for owners of solar photovoltaic electric energy
systems.
Eligible system sizes range
from 1,000 watts up to 1 million watts. Rebates programs are administered by
your electric utility provider.
The amount of the cash incentive depends on:
system size
the type of technology used
the project type (Retrofit or
New Construction)
and if the system is for a
residential, commercial, governmental or non-profit entity.
Rebate payments can be in the form of a one-time payment (EPBB), or payments
made over the course of a 60 month period (PBI).
The type of payment (EPBB or
PBI) is usually dependant on the size of the system.
Starting on January 1, 2010,
all systems that are equal to or greater than 30,000 watts in size must use
the PBI payment method.
Rebate payments are made
after the system is installed and inspected to verify that it conforms to
its design objective and after it has been interconnected to the electric
grid.
For solar photovoltaic electric
systems:
All utilities require the
system to generate electricity to offset the consumer's on-site electrical
load, or less.
However, expected production
may not be more than the historical or expected electrical needs of the
consumer.
According
to Section 136 of the IRS Code, energy conservation subsidies provided by
public utilities, either directly or indirectly, are non taxable.
"Gross
income shall not include the value of any subsidy provided (directly or
indirectly) by a public utility to a customer for the purchase or installation
of any energy conservation measure."
