If you’ve been thinking about going solar for a while, now is the time to take the plunge! There are several solar incentives available for residential and commercial solar installation in California in 2024, including property tax exemptions, rebate programs, and a substantial 30% tax credit.
Six Rivers Solar has been the North Coast’s leader in renewable energy since 1980 and we can help you maximize your savings with solar incentives. Read on to learn more about the best solar rebates and incentives in 2024.
Federal Solar Incentives
The federal government offers tax incentives for solar panel and battery storage systems.
Federal Solar Tax Credit
The federal solar tax credit goes by many names: the Investment Tax Credit (ITC), the solar panel tax credit, and the Inflation Reduction Act (IRA) solar tax credit, to name a few. But no matter what you call it, the federal solar tax credit is the best solar incentive available in 2024. The credit is worth 30% of your total solar installation costs with no maximum limit. It reduces what you owe when you file your federal income taxes for the year you install your solar panels. In most cases, the solar tax credit translates into thousands of dollars of savings.
Statewide Solar Incentives in California
If you live in California, you’re eligible for state-wide solar incentives that can be combined with the federal solar tax credit.
Net Energy Metering
Net Energy Metering (NEM), also known as net metering, is a solar incentive system that allows solar customers to trade electricity with their utility companies. During peak sunlight hours, solar panels generate more electricity than the average home needs. Net metering allows you to sell the excess energy to the grid in exchange for credits, which can be used to pay for the electricity you buy from the grid when your solar panels are not meeting your needs—at night, for example.
In 2023, California introduced a new version of its net metering policy, known as NEM 3.0, which is now in effect. Under the new NEM 3.0 laws, solar customers won’t be paid for the full retail rate of the electricity they export to the grid. Instead, they’ll be credited at rates that vary depending on the time of day. This makes battery storage more valuable than ever. If you install a solar battery, you can store your excess power and use it yourself instead of sending it to the grid for a reduced rate.
Self-Generation Incentive Program (SGIP)
The Self-Generation Incentive Program provides rebates for energy storage systems, including solar batteries. You do not have to install solar panels with your battery to qualify for the SGIP—solar batteries can be installed at non-solar homes and recharged from the electric grid. However, installing battery storage without solar panels is not recommended in California. We have some of the highest electricity rates in the country, and charging a battery from the grid is expensive. Charging from solar panels, on the other hand, is free.
The SGIP is designed with a series of steps, with incentive rates decreasing as the steps fill up. As of February 2024, small-scale residential storage systems are eligible for an incentive rate of $0.15 per watt-hour, or $150 per kWh. (You can find the most up-to-date incentive rates here.) Most solar batteries have a storage capacity of 10 kWh, which means you could receive a $1,500 rebate.
Customers who are income-qualified, medically vulnerable, or live in a community that is at risk for fires are eligible for higher incentive rates.
SGIP incentives are available to customers of:
- PG&E
- SDG&E
- SCE
- Southern California Gas (SoCalGas)
California Solar Energy System Property Tax Exclusion
Solar panels can increase the value of your home, but they won’t increase your property taxes. Generally, when something of value is added to a property, the addition is assessed at current market value and this value is added to the existing value of the property for tax purposes. When a solar energy system is installed, it is not assessed, and the existing assessment of the property will not increase.
The property tax exclusion for solar energy systems is available until January 1, 2025. Don’t miss out on this incentive! Start your solar installation today with a free quote from Six Rivers Solar.
Go Solar with the Best Solar Company Near You in California
Six Rivers Solar is here to help make your solar installation as affordable as possible with flexible financing options, solar rebates, and incentives. We are a local solar panel company that is deeply invested in the community we serve and committed to making solar accessible to North Coast homeowners and businesses. Our team installs custom solar energy systems for homes, commercial buildings, and cannabis farms, and we specialize in advanced off-grid and battery storage systems. Reach out to chat with us about your property’s solar viability, and find out how much you could save with solar!
