If you’re thinking about installing solar panels at your home or business, 2024 is a great time to take the plunge and switch to solar energy! There are some excellent California solar incentives available throughout Monterey, Santa Cruz, and Salinas that can help you save on installation costs and recoup your investment faster.
The Monterey Bay area is perfect for solar energy with its plentiful sunshine. In fact, according to the Solar Energy Industries Association (SEIA) the Golden State is the leader in solar capacity in the country! At Premo Solar, we offer full-service residential and commercial solar installations and stay up-to-date on what incentives are available to help our clients maximize their savings. Here’s what’s on our radar for 2024.
30% Federal Solar Tax Credit
California home and business owners qualify for the federal solar tax credit, which is one of the best solar incentives available in 2024. Also known as the Investment Tax Credit (ITC), the solar tax credit allows you to reduce what you owe in federal taxes by 30% of your solar installation costs with no annual limit.
The Investment Tax Credit was increased and extended as a part of the Inflation Reduction Act in 2022 and covers everything from solar panels and batteries to installation costs, permitting fees, and more. The credit can be claimed from now until 2032 to reduce your federal tax liability, and if the amount of taxes you owe reaches zero, any remaining balance will roll over to the following year. To claim the solar tax credit in 2024, your installation must be completed by the last day of the year.
Net Metering 3.0
Net Energy Metering (NEM) has been a top CA solar incentive for years, however the policies changed in 2023 with NEM 3.0. Net metering is a solar incentive system that allows you to send the excess electricity your solar panels produce to the grid and get credits in return to put towards your electricity bill.
While the export rates were lowered as a part of the changes made to net metering in 2023, they aren’t gone completely. Under NEM 3.0, rates are 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 covers energy storage systems for both residential and commercial installations in high wildfire threat areas and for medically vulnerable customers. In 2024, the California Public Utilities Commission authorized more than $1 billion in funding to help affected homeowners and businesses keep their power on during an outage or PSPS event, including with solar battery backup installation. The program offers a rebate of $150 to $1,000 per kilowatt-hour of installed storage and is available to PG&E, SCE, SoCalGas, and SDG&E customers.
Solar Energy System Property Tax Exclusion
Solar installation can increase the value of your residential or commercial property. However, with the Solar Energy System Property Tax Exclusion, the amount of taxes you owe on your property won’t increase. In 2024, this property tax exclusion was also extended to new construction projects with the Active Solar Energy System Exclusion. This extension is valid through January 1, 2025, making a solar installation ideal in 2024.
Start Saving with Solar in 2024!
Premo Solar can help you take advantage of solar incentives to 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 sleek, premium-quality solar energy systems in Monterey, Santa Cruz, and Salinas, California. If you have questions about California solar rebates and incentives in 2024, reach out to us today. We’re here to help make your solar journey as simple, stress-free, and profitable as possible!