Commercial Solar Incentives in California

This material has been prepared for informational purposes only. Greentech Renewables does not provide tax, legal, or accounting advice. Information displayed is not project-specific and will require an official written proposal by a certified installer. 

Property Tax Exclusion 

California offers a 100% property tax exclusion for commercial solar systems, meaning your property taxes for your commercial building will not increase despite the solar systems' added value. 

Self Generation Incentive Program (SGIP) 

The California Public Utilities Commission provides PG&E, SDG&E, SCE and SoCal Gas commercial customers with a rebate for installing a solar system paired with an energy storage system through the SGIP. Approved businesses installing systems smaller than 30kW can receive their full incentive upfront. For systems greater than 30kW, businesses will receive 50% of their rebate upfront, while the remaining rebate will be paid over the following 5 years. 

Local CA Solar Incentives 

There are several regional-specific incentives available in California for commercial businesses. 

Business owners may also take advantage of several federal solar incentives that could be combined with California's current incentives. When applied, these solar incentives have the potential to significantly reduce the cost of installing a solar system. 

Business Energy Investment Tax Credit (ITC)

The business Energy Investment Tax Credit program allows businesses to claim 30% of their solar system costs as a federal tax credit. Additional tax credits are available depending on the district. 

Connect with a local installer to find out if you qualify for additional tax credits. 

Renewable Electricity Production Tax Credit (PTC)

Business owners in California may take advantage of the federal renewable electricity production tax credit (PTC). This provides an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualifying energy sources. Projects under 1 megawatt (MW) can receive 1.5 to 2.75 cents/kWh depending on the type of facility. Projects over 1 MW will receive a base tax credit of 0.5 cents/kWh.

Keep in mind that solar project owners cannot claim both the ITC and PTC for the same property. Discuss with a solar installer to understand which tax credit incentive you should claim for your solar system.

Modified Accelerated Cost-Recovery System (MACRS)

California business owners can take advantage of the Modified Accelerated Cost Recovery System (MACRS). This program allows business owners to recover some of the costs of solar panel installation through a five-year MACRS schedule.

California Commercial Property-Assessed Clean Energy (C-PACE)

C-PACE is a financing program that allows approved commercial property owners to borrow money to pay for energy improvements without a large upfront cost coming out of the business' pocket.

Rural Energy for America Program (REAP Grant) 

The USDA's "Rural Energy for America Program," or “REAP,” offers a grant to cover 50% of commercial solar system costs to encourage agricultural and rural businesses to maximize their energy efficiency with solar.

This grant is only available if you own a small business in an area with less than 50,000 in total population. 

FIND OUT IF YOU QUALIFY!

Connect with a local California installer to see which incentives can contribute to your solar system. 

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