California Solar Tax Incentives in 2019
As one of the sunniest and most progressive states, California has been at the forefront of solar power initiatives for nearly 2 decades. With a few substantial rebate programs expiring, some may question whether it’s the time to buy solar systems in California. Plug It In Solar in Los Angeles has serviced the area since 2015 and we feel that if you are considering solar power for the home, the time is now rather than later. So, here’s a quick guide that goes over what kinds of benefits California residents will receive by switching to solar power.
Federal Tax Incentive
Unfortunately, at the moment, there are no California state solar tax credits. However, one of the biggest benefits you can receive for going solar is the federal Solar Investment Tax Credit. Available to anyone in the United States, this program credits you for 30% of the cost of your solar power system toward your federal income taxes owed. Since this program started, the solar industry has seen 59% average annual growth, making it extremely popular. Obviously an enormous cost relief, this credit is set to decrease to 26% is 2020 and 22% in 2021. This is why we recommend buying your system before 2020, so that you can save the most possible money!
Recently, very helpful California incentive programs have ended. This includes the California Solar Initiative, which gave rebates and other financial incentives, and municipal programs that offered rebates from the power companies if you had solar installed. Although unfortunate, California remains one of the best states for solar power. This is in large part due to the next topic.
California law stipulates that utility companies must provide net metering to those utilizing solar. Solar net metering is when excess power being generated that is not being used by your household at the time is sold back to the utility company. Luckily, for Los Angeles county, the
rate the power company pays for your extra power is equal to the amount they charge you for grid power! This can result in huge offsets in your monthly power bill.
So while a few state programs have expired, you can see that it’s still the golden age to buy solar power systems in California. If you are able to purchase your system before 2020, you’ll receive the most savings. We recommend doing this because the difference between a 30% offset and a 26% or 22% offset can mean thousands of dollars in your wallet. Plug It In Solar has a variety of buying and leasing options, and we can walk you through all of the incentives for which you qualify. Call us today at (818) 670-7769 to discuss your options. There’s no time like the present, when it comes to solar power.