In California we are fortunate to have both the funding from the California Solar Initiative and the Federal Energy bill to help you pay for your system.
Rebates
• On Jan. 12, 2006, the California Public Utilities Commission (PUC) approved the California Solar Initiative (CSI), a comprehensive $2.8 billion program that provides incentives toward solar development over 11 years. That means rebates are funded for the next 11 years. Starting in 2007 the rebate amount is $2.50 for each watt installed, declining thereafter.
• Applying for this rebate takes some paperwork and patience. Berkeley Solar Electric Systems will take care of the paperwork for you.
• Rebates can be considered income on your income taxes. However, Berkeley Solar Electric Systems will discount your system cost by the amount of your rebate if you reassign it to us. This way you get the rebate benefits immediately, and we pay the rebate income taxes for you.
Tax Credit
• A 30% Federal tax credit exists for installing solar electric systems. This is effective January 1, 2006 through December 31, 2008. For residential systems, this credit is capped at $2,000,. For businesses, there is no cap.
• A tax credit is generally more valuable than an equivalent tax deduction because a tax credit reduces taxes dollar-for-dollar, while a deduction only removes a percentage of the tax that is owed.