Inland Pacific Solar :: Commercial and Residential Solar Rebates and Incentives

The California Energy Commission estimates that the average household spends up to 30% or more of its energy bill for hot water heating, and it accounts for more than one-quarter of the total energy used in a typical single-family home. An electric water heater is the single largest user of electricity of all household appliances.

Whether you have an electric or gas water heater, the operating cost will continue to rise over time. According to the California Public Utilities Commission, electricity rates have been increasing an average of 6% per year, over the past 35 years, and the wholesale price for natural gas has more than tripled in the past eight years. Natural gas shortages are likely to push rates even higher in the near future. With solar you will no longer have to be at the mercy of the utilities and their ever-rising rates. The Commission also estimates that a typical homeowner can save 60-70% on the cost of water heating by installing a solar water heating system.

An Investment That Pays For Itself

A properly designed and installed solar water heating system will perform well for 20-40 years. Over the life of the solar system you will realize an average annual 15% return on investment. A typical residential solar hot water system in California has an 8-10 year payback, and will generate $15,000 to $20,000 positive cash flow over the system’s 30-year life.

A solar pool heating system has a typical payback period of 2-4 years. There are several factors that affect the savings realized with a solar pool heating system, including, your climate, the size of the pool, your cost for natural gas, the pool temperature you wish to maintain, whether you use a pool cover, the length of your swimming season, your climate zone, etc.

The good news is that there are many government rebates and incentives which benefit individuals and companies that purchase and install solar. Currently, there is a Federal Tax Credit of $2,000 that is offered to any homeowner who installs a solar water heating system. In some regions, a local rebate is being offered for solar water heating in addition to the tax credit. Following is information and links to learn more about these credits and which ones you are eligible for.

California Solar Initiative Program

Database of State Incentives (California)
CSI Trigger Tracker (Current Rebate Levels)

Go Solar California CSI Home Page

CSI Official Handbook

CSI EPBB Calculator: Determining Design Factor for Rebate
PG&E CSI Application Forms
SCE CSI Application Forms
CCSE CSI Application Forms
PG&E Home Energy Audit
PG&E Business Energy Audit
SCE Home Energy Audit
SCE Business Energy Audit
SDG&E Home Energy Audit
SDG&E Business Energy Audit
Home Energy Efficiency Disclosure Form
Business Energy Efficiency Disclosure Form

Federal Incentive Information

According to the California Public Utilities Commission (CPUC), the cost of electricity from California utility companies to business customers increased an average of 7% year over year during the last 30 years. Combine the rising cost of electricity and the generous government incentives available, and you have a compelling reason to and install a solar electric system on your building. You can begin saving significantly on your electricity bill, benefit from government tax credits, and promote a green image for your business by installing a solar electric system today.

Reliability

A solar electric system is a great investment for any business. The systems are extremely reliable and have very low operating costs, as the system contains no moving parts and therefore requires almost no maintenance. Solar electric systems have a 30-40 year design life and the solar panels have a 25-year warranty.

A battery bank may be added to your system creating an uninterruptible power system to handle critical loads, such as computers, cash registers, and phone systems, during a power failure.

Government Incentives for Solar Electric on Businesses

The most generous incentives for solar today are available for businesses, and especially those with a tax appetite. In addition to a Federal tax credit, California has developed their own rebate incentive program to encourage solar.

Federal Tax Credit

Any business that installs a solar electric system on its property is eligible for a 30% Federal Tax Credit on the total installed cost of the system. In addition to this credit, the business may take advantage of the 5-year accelerated depreciation schedule for the solar system.

State Rebates and Incentives

California has the most generous state-level incentive for businesses going solar. The California Solar Initiative (CSI) Program offers a cash rebate of approximately 20% of the installed cost of the solar electric system. However, the rebate levels decline over time as more businesses take advantage of the offering. So, if you are considering a solar electric system, it is best to act now to lock in the highest rebate possible.

Finance and Save

You can save cash for your business right from year one by financing the system over as little as 7 to 10 years. Commercial solar customers have used both secured mortgage financing and lease financing to finance their systems. We can help arrange financing for your solar system.

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