Solar Rebates and Incentives

California Solar Initiative (CSI) Solar Rebate 

CSI is a solar incentive program for residential and commercial utility customers of each of California’s three Investor Owned Utilities:  Pacifica Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E).  The CSI rebate program is regulated by the California Public Utilities Commission and is administered by the respective utility.

Residential
Currently, the maximum CSI residential solar rebate is set at $.25 per DC Watt of photovoltaic system installed.  A deration calculation called the ‘design factor’ must also be applied to figure out the rebate amount your proposed solar system will qualify for.  The design factor relates to how close to ‘optimal condition’ the proposed solar system is, based on roof azimuth, tilt, shading, etc.  The maximum design factor is a value of 1.0, which is multiplied against the maximum rebate amount. 

American Solar handles all of the paperwork associated with the CSI rebate program, and we carry the rebate amount, subtracting it from your initial invoice cost.  We will process the paperwork for the rebate and have the funds assigned directly to us, saving on your upfront investment costs.

Commercial
The CSI solar incentive program works a little differently for commercial installations; there is no upfront rebate, rather a production based incentive (or PBA).  With commercial PV, not only does the customer greatly reduce the grid electricity they use, but they are also paid by PG&E for the energy their solar system produces.  Currently, the CSI solar purchase price is set at $.044 per kWh of energy produced.

30% Federal Income Tax Credit

Residential and Commercial
The Energy Improvement and Extension Act of 2008 allows for a 30% Investment Tax Credit for those who install a photovoltaic system at a residential or commercial property.  This is a tax credit, not a deduction, and is applicable for 30% of the total monies spent towards a renewable energy system.  If the tax credit amount exceeds your annual Federal Tax due, the balance of the credit can be rolled-over and applied in the following tax year.  The Federal tax forms to reference are #3468 Investment Credit and #3800 General Business Credit.  Please consult your tax preparer for exact details.