Incentives >> Commercial and Non-Profit Solar Incentives


When you buy solar power in California you qualify for a number of California State and federal incentives that will cut your costs in half. California Solar Center offers information on all residential solar incentives as well as free solar power quotes for your solar installation in California.
CALIFORNIA COMMERCIAL SOLAR INCENTIVES

California Solar Initiative- PV Incentives

CSI Incentives for Non-residential Buildings and Existing Homes:
The CSI includes a transition to performance-based and expected performance-based incentives (as opposed to capacity-based buydowns), with the aim of promoting effective system design and installation. CSI incentive levels will automatically be reduced over the duration of the program in 10 steps based on the aggregate capacity of solar installed. (Click here for current incentive levels for each utility.) In this way, incentive reductions are linked to levels of solar demand rather than an arbitrary timetable.

Expected Performance-Based Buydowns for systems under 30 kW began in 2007 at $2.50/W AC for residential and commercial systems (adjusted based on expected performance) and $3.25/W AC for government entities and nonprofits (adjusted based on expected performance). The incentive levels decline as the aggregate capacity of PV installations increases. Incentives will be awarded as a one-time, up-front payment based on expected performance, which is calculated using equipment ratings and installation factors such as geographic location, tilt, orientation and shading. Click here for current incentive levels for each utility. Systems under 30 kW also have the option of opting for a performance-based incentive rather than the incentive based on expected performance.

Performance-Based Incentives (PBI) for systems 30 kW and larger began in 2007 at $0.39/kWh for the first five years for taxable entities, and $$0.50/kWh for the first five years for government entities and nonprofits. The incentive levels decline as the aggregate capacity of PV installations increases. PBI will be paid monthly based on the actual amount of energy produced for a period of five years. Residential and small commercial projects under the 30 kW threshold can also choose to opt in to the PBI rather than the upfront Expected Performance-Based Buydown approach. However, all installations of 30 kW or larger must take the PBI. Click here for current incentive levels for each utility


San Francisco - Solar Energy Incentive Program

The City and County of San Francisco, through the San Francisco Public Utilities Commission (SFPUC), are providing incentives to residents and businesses who install photovoltaic (PV) systems on their properties.

Commercial businesses and non-residential buildings owned by a non-profit, or occupied by a non-profit and owned by government entities receive a capacity-based incentive of $1,500 per kW. Commercial businesses can receive a maximum amount of $10,000, while there is no cap for non-profits. Multi-unit residential buildings that are operated by a non-profit may receive $3,500 per kW up to a maximum of $60,000.

To qualify for incentives through this program, applicants must have first applied for and received approval for an incentive through the statewide California Solar Initiative. Applicants can receive both incentives in addition to the federal tax credit

California Feed-In Tariff

The California feed-in tariff allows eligible customer-generators to enter into 10-, 15- or 20-year standard contracts with their utilities to sell the electricity produced by small renewable energy systems — up to 3 megawatts (MW) — at time-differentiated market-based prices. Time-of-use adjustments will be applied by each utility and will reflect the increased value of the electricity to the utility during peak periods and its lesser value during off-peak periods. A special, higher-level rate is provided for solar electricity generated between 8 a.m. and 6 p.m.

City of Palo Alto Utilities - Renewable Energy Credit Purchase Program

In an effort to support solar development within CPAU’s service territory, rather than purchasing SRECs from outside sources, the City Council voted unanimously in December 2007 to enter into contracts with their commercial and industrial customers for the purchase of the SRECs associated with their solar installations. CPAU currently pays $50/MWh for SRECs through 3 Degrees, Inc and prices are expected to vary between $30/MWh and $150/MWh in the future. The price that CPAU will offer their local customers will be at or below these expected costs.

To ease the administrative burden of the program, only systems that exceed 100 kW are being considered initially, which is the same minimum size requirement for the performance-based incentives in the PV Partners Program. Contract terms can not exceed 20 years and the contracted amounts can not exceed $600,000.

Property Tax Exclusion for Solar Energy Systems

Section 73 of the California Revenue and Taxation Code allows a property tax exclusion for certain types of solar energy systems installed between January 1, 1999, and December 31, 2016. This exclusion amounts to 100% of system value or 75% of system value exemption for dual-use equipment.
FEDERAL COMMERCIAL SOLAR INCENTIVES

Commercial Federal Grant:

For all commercial solar electric and solar hot water systems there is a federal grant equal to 30% of the total installation cost, with no maximum limit. This grant is issued by the Treasury Department and paid within 2 months of the completion of your solar power project.

Federal Bonus Depreciation:

All commercial solar electric and solar hot water installations are eligible for 50% year one Bonus Depreciation. This incentive is only available in 2009.