PV systems for homes, businesses, agricultural operations, schools, non-profits and other sectors are very affordable thanks to California state incentives, federal tax credits.

The California Solar Initiative, which began January 2007, is the leading solar program in the US. With nearly $3B in funding to be distributed over the 10-year program, its scope is unprecedented and addresses the needs of California in many ways.

The most direct benefit is provided to home-owners and organizations in the form of cash incentives that reduce the costs by 25 to 35%. These incentives are administered by PG&E, and the other major utilities serving other parts of the state. Federal tax credits reduce costs by 30% for commercial projects (up to $2,000 for home systems). Accelerated depreciation reduces costs even more for businesses.

The cash incentives currently available are as follows:

Residential Incentives

“Upfront Rebates” - Technically referred to as the Expected Performance-Based Buydown (EPBB), this is an upfront cash rebate based upon system size and production expectations for a given project. Production expectations include geographic location, system orientation, and shading. While it is not known how long the current incentive levels will be available until they drop to the next lowest level, current examples of the EPBB rates are as follows:

• $2.20 per watt for home systems
• $1.90 per watt for small to medium commercial systems (up to 100kW); larger projects are required to use the Performance Rebate below.
• $2.65 per watt for non-profit and government systems .

Contact GreenLight for more information on current EPBB rates and how to make the most of them.

“Performance Rebates” - Technically referred to as Performance-Based Incentives (PBI), these are cash incentives paid out over 5 years, based upon actual production. Contact GreenLight for more information on current PBI rates and how to make the most of them. This incentive is required for projects larger than 100kW, and is optional for smaller projects.