Are you thinking about installing solar panels at your home in Monterey, Santa Cruz, or Salinas, California? Now is a great time to take the plunge and switch to solar energy! There are some excellent California solar incentives available in 2023 that can help you save on your installation costs so you can recoup your investment faster.
California is the number one state for solar energy according to SEIA, partially because there are such great solar panel incentives in California. Here are some of the best solar incentives in California in 2023:
30% Federal Solar Tax Credit
California does not have a solar tax credit, but California homeowners do qualify for the federal solar tax credit, which is one of the best solar incentives available in 2023. The federal solar tax credit (also known as the Investment Tax Credit) allows you to reduce what you owe in federal taxes by a percentage of your solar installation costs. The solar tax credit in 2023 is worth 30% of your total solar costs and it covers everything from residential solar panels and batteries to installation costs, permitting fees, and more.
The federal solar tax credit has been in place for many years but was recently increased and extended by the Inflation Reduction Act of 2022. The new Inflation Reduction Act solar tax credit will be available at its current 30% value until 2032. But if you want to claim the tax credit in 2023, your installation must be completed by the last day of the year. Schedule a consultation with Premo Solar today to make sure you can get the ITC in 2023!
Net Metering 3.0
Net Energy Metering (NEM) has been a top CA solar incentive for years. Net metering is a solar incentive system that allows you to trade electricity with your utility. Under a NEM agreement, you send the excess electricity your solar panels produce to the grid, and your utility company credits your account based on the amount of electricity you export. You can then use your credit to help pay for the electricity you buy from the grid when your solar system is not producing enough power to meet your needs.
Recently, California’s net metering laws were changed with the introduction of NEM 3.0. With NEM 3.0, solar customers will be paid less for the electricity they send to the grid. While this is a blow to a long-standing incentive, it doesn’t entirely devalue net metering. You’ll still be credited for the electricity you export to the grid, just at a lower rate.
However, rates will be higher during peak demand times, making battery storage more valuable than ever. If you have a solar battery, you can store your excess electricity until rates are at their highest before sending it to the grid so you get more for your power.
Self-Generation Incentive Program (SGIP) for Solar Energy Storage
California’s Self-Generation Incentive Program now covers advanced energy storage systems, including solar batteries! The program offers a rebate of $150 to $1,000 per kilowatt-hour of installed storage and is available to residential customers of PG&E, SCE, SoCalGas, and SDG&E.
Start Saving with Solar in 2023!
Premo Solar can help you take advantage of solar incentives to help maximize your solar savings and speed up your return on investment when you install a home solar system. We are a leading local solar company installing beautiful, premium-quality solar energy systems in Monterey, Santa Cruz, and Salinas, California. If you have questions about California solar rebates and incentives in 2023, reach out to us today. We’re here to help make your solar journey as simple, stress-free, and profitable as it can be!
