|
Recent developments at the state and federal government levels have created many rebates, incentives and tax exemptions and credits that are very favorable to residences and businesses that install solar photovoltaic and other renewable energy generating systems. Rebates, incentives, and tax credits vary by geographical area and utility provider. To ensure you receive the most current information available for your state and location, contact our RTI Sales Engineers at 1-800-550-SOLAR. Below are highlights of the California rebate programs and tax exemptions and the Federal tax credits. California has two main Rebate/Incentive programs: the California Public Utility Commission's (CPUC) Self-Generation Incentive Program, and the California Energy Commission's (CEC) Emerging Renewables Program. On Jan. 12, 2006, the CPUC approved the California Solar Initiative (CSI), a $2.8 billion program that provides incentives toward solar development over 11 years. The existing solar programs of the CPUC and California Energy Commission will be consolidated into the CSI by Jan. 1, 2007. The CEC Emerging Renewables Program will provide incentives for residential and small commercial solar projects through 2006. After 2006, the CEC will focus on residential new construction as part of the CSI. For details on the California Solar Initiative and the application process that takes place efffective January 1 2007 visit www.gosolarcalifornia.com. California State Programs & Tax Incentives California Public Utility Commission's Self-Generation Incentive Program: offers financial incentives for certain types of distributed generation facilities. For solar photovoltaic renewable energy generating systems that are greater than 30 kW in size and connected to the grid, the rebate amount is $2.80 per watt (as of January 1, 2006). California Energy Commission's Emerging Renewables Program (ERP): provides incentives for the purchase of solar photovoltaic renewable energy generating systems that are less than 30 kW in size and connected to the grid. This rebate is offered to customers within the utility service areas of Pacific Gas & Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E) and Bear Valley Electric Service (BVE). As of January 1, 2006 the rebate amount is $2.80 per watt. There is also a performance based incentive through the ERP that pays incentives based on the amount of electricity generated. The 30kW sizing cap does not apply for the performance based incentive. State Property Tax Exemption: Section 73 of the California Revenue and Taxation Code allows a property tax exemption for photovoltaic solar energy systems installed on or before December 31, 2009. Qualifying solar energy systems are defined as those that "are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy." Federal Incentives Accelerated 5 year corporate depreciation of solar photovoltaic systems: for more information, reference IRS Publication 946 and IRS Form 4562: Depreciation and Amortization. Business energy tax credit of 30% for solar energy property installed in 2006 and 2007: reference IRS Code 26 USC. For eligible equipment installed from January 1, 2006 through 2007, the credit is set at 30% of expenditures for solar technologies, fuel cells and solar hybrid lighting; microturbines are eligible for a 10% credit during this two-year period. For equipment installed on or after January 1, 2008, the tax credit for solar energy property and solar hybrid lighting reverts to 10% and expires for fuel cells and microturbines. The geothermal credit remains unchanged at 10%. |
||
 |
||
©2004 Renewable Technologies, Inc. 800-550-SOLAR Webmaster Sales |
