Utility and Tax Incentives
Federal, state, and local governments understand the importance of sustainable energy and the high costs associated with traditional power sources. Utility companies can’t afford to maintain their infrastructure costs as homes use more and more power. That’s why, in most cases, utility and tax incentives are available to save customers significantly on the cost of energy.*
*Ask your representative about which incentives you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.
Federal Investment Tax Credit – 30%
The solar investment tax credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The federal ITC is based on 30% of the homeowner’s cost to install solar. On leased systems, SunPower® collects this incentive and passes the savings on to the homeowner. Don’t wait, the sooner you go solar, the more you save!
California offers many state and local incentives for going solar. The utilities offer incentives such as energy audits and battery rebates. They vary by utility company and location. We will help you to attain all of the incentives your project qualifies for.
Property Tax Exemption – 100% through 2024
Installing solar panels on your home increases its value up to 20 times your annual energy bill savings. We don’t think you should be penalized for your sustainable decision and many state legislators agree! Until the end of 2024, new solar installations will be subject to no additional property taxes based on their assessed value.
Increase Home Value
Having a residential solar energy system on your property is known as a capital improvement which adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax basis investment can be deducted from the sale’s price, reducing the amount of the price that is counted as profit. This reduces the taxes owed from the sale and may be able to help you avoid capital gains taxes on appreciation.