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5 Solar Power Incentives for CA Homeowners
August 31, 2021 at 4:00 AM
Learn more about solar power incentives in CA.

California is a fantastic state for homeowners who want to power their property with solar energy. It gets ample amounts of sunlight throughout the year, and the state itself is highly progressive, so they make switching to solar as easy as possible.

If you’ve been considering making the switch but are concerned with the costs of doing so, there are plenty of solar power incentives for CA homeowners. Browse the list below to learn more about them and find out which opportunities you can take advantage of to facilitate your investment.

Different CA solar power incentives available.

Federal Solar Investment Tax Credit (ITC).

If you buy and install a new home solar system by December 31, 2022, you can qualify to receive this federal tax credit on your tax filing the following year. The tax credit totals 26% up until that date, but it is scheduled to drop to 22% in 2023 and end entirely in 2024.

This is a fantastic way to reduce the upfront investment on going green with your home, and you will qualify whether you install the system with or without a home battery.

Property-Assessed Clean Energy (PACE).

PACE is a CA solar power incentive that’s associated with the Homer Energy Renovation Opportunity (HERO) program. It’s designed to give property owners the ability to finance their new solar energy projects using their property taxes.

Either the state or local government will fund the upfront costs by working with traditional financiers, and then you pay that loan back via an increased property tax bill. The loan can be paid back over a 20 year period, which allows you to pay off the upgrade comfortably over many years rather than in an upfront lump sum.

Net Metering CA Solar Power Incentive.

The net metering incentive is often seen as a win-win for both you, the homeowner, and the power companies throughout the state of California.

Whenever your new residential solar system generates more energy than you use in a month, you will receive bill credits at the retail rate from your utility company for that extra energy. This statewide incentive has a capacity limit of 5% of aggregate customer peak demand.

Single-Family Affordable Solar Housing (SASH).

The SASH incentive was created to help lower-income homeowners who want to make the switch to solar but didn’t think they could afford it. It’s structured to provide qualifying single-family homeowners with up-front incentives to help with the initial installation costs and one incentive level of $3.00 per watt.

To qualify for SASH, you must receive electrical service from PG&E, SCE, or SDG&E, own and live in the home, have a household income that is 80% or below the area median income (AMI), and live in a home defined as “affordable housing” by California Public Utilities Code 2852.

Reduced Utility Bills.

While this incentive does not apply to California alone, it still bears mentioning because it’s one of the most significant benefits of converting your home to solar. The exact amount of money you’ll save on your monthly utility bills varies, but the more energy you consume, the higher the savings tend to be.

Not only are you going to save money, but since solar energy is a renewable resource, you’re also going to reduce your carbon footprint. That’ll help combat climate change and push everyone one step closer to a cleaner, greener society.

Are you ready to take advantage of these incentives?

Then the team here at SolarSwitch is ready to help make it easier than ever. We have a combined 20 years of experience in residential solar power, so we have the insights and expertise needed to find all of the incentives you qualify for and match you with the right system for your unique needs.

Learn more about the services we offer, or take the first step towards solar by booking your initial consultation.