The net cost of many solar systems can be reduced by rebates and tax credits.
California rebates, available from utility companies, are offered to eligible customers. Rebate levels vary with solar electric or solar heating, and are proportional to the energy produced by each system. Click here to see California rebates. Pacific Gas and Electric (PGE) offers rebates for solar thermal systems that offset natural gas use. Click here to see California Solar Initiative for Solar Thermal.
Federal tax incentives for Residential installations can offset up to 30% of the eligible system costs. Residential system installations entitle the purchaser to receive a tax credit based on the total system cost. That tax credit can be applied immediately following system installation, and can be carried forward to future years. Consult your tax professional for expert guidance. Click her to see Renewable Residential Tax Credit.
Federal Tax incentives for Commercial installations are available as either a 30% Investment Tax Credit or a 1603 Treasury Department Grant. The best choice of these two is best determined by consulting your tax advisor.
Commercial Installation costs are eligible for Accelerated Federal Depreciation. In some cases the depreciation can be 100% in the first year. This Bonus Acceleration is available at 100% through 2011, and up to 50% through 2012.