Photovoltaic rebates vary from state to state and vary based on system size. In addition to state rebates, there is a 30% Federal tax credit, as well as a 6-year accelerated depreciation write-off.

California Solar Initiative

Effective January 1, 2007, the California Solar Initiative established two state rebate programs; Expected Performance Based Buy down (EPBB) and Performance Based Incentive (PBI).

Expected Performance Based Buy down (EPBB)

This program provides a one-time, upfront incentive for solar electric systems less than 100 kW. Rebate amounts are determined by the expected performance of the system. Expected performance is calculated based on equipment rating and installation factors, such as geographic location, tilt and shading.

Performance Based Incentive (PBI)

This program provides monthly incentive payments based on energy production over a 5-year period for solar electric systems 100kW or greater, although any other size system may also opt into the PBI incentive structure.

Federal Tax Credits

In addition to State incentives, the Federal government offers a 30% Federal investment tax credit that can be carried 20 years or back one tax year. That's basically an instant 30% discount! The Modified Accelerated Cost Recovery System (MACRS) five-year accelerated depreciation schedule is also applicable.

Municipal and Other Utility Programs

In 2008, California will require all municipal utilities to offer a similar incentive program. Each utility will be required to devise its own incentive program over the next few months. If you are a customer of a municipal utility, we can work with you to determine when and how these programs might benefit your project.