Over 1.5 million homes and businesses in California have solar panels, helping the Golden State gain a reputation as the leader in renewable energy. The California solar energy buy back scheme makes it possible to earn back your solar investment by selling power back to the grid.
No other power source is as sustainable as the sun, making solar programs in California particularly effective because the state receives around 275 days of sunshine per year. By fitting solar panels on your residential, commercial, or industrial property and installing batteries to store the generated energy, you can power your property and get money back through the California solar energy buy back program.
However, California solar panel incentives do much more than simply reduce energy bills. Investing in solar also allows you to:
In addition to receiving tax credits and selling power back to the grid, it’s also possible to get a rebate for solar panels in California. However, before diving right into the various solar incentives California residents and business owners can access, it helps to have a better understanding of how a grid-tied solar energy system works.
Solar power harnesses sunlight and converts it to direct current (DC). Inverters turn the direct current into alternating current (AC) to power appliances through a switchboard. Any unused energy is measured by a meter and sent to the grid. When there is no sunlight, power is drawn back from the grid and paid for using credit from your metered energy contributions.
The upfront cost of installation is often the biggest hurdle in going solar. However, thanks to the Self-Generation Incentive Program (SGIP), it’s possible to offset a significant percentage via solar rebates. California residents can be reimbursed for their battery storage, ensuring installation costs can be offset.
You can claim back 30% of the cost of installing solar and battery storage systems through solar investment tax credit (ITC). As per the Inflation Reduction Act, the 30% threshold is protected until 2032. However, these are only some of the tax savings you stand to make. Under California’s Active Solar Energy System Exclusion, rooftop solar systems installed before the end of 2024 won’t be assessed in property valuations, so your property tax won’t increase.
While it’s unlikely that businesses or residences in wealthy areas are eligible for free solar, California authorities offer two ways to significantly reduce or completely cover the cost of installation through the following schemes:
Until recently, consumers could sell kilowatt hours (kWh) back to the grid for around 30 cents. However, under new Net Metering Energy (NEM) rules, the California solar energy buy back rate has dropped to around 8 cents for kWh. However, even with the reduction, you still stand to make significant savings on solar energy compared to burning fossil fuels. Plus, existing customers and any consumers completing a solar system application before April 13, 2023, can be “grandfathered” into the old 30-cent rate. So, if you’re considering switching to solar, don’t delay!
A & G Electric is a small, family-owned business offering comprehensive services, including full solar design and installation. Not only can we complete your roofing installation project to the highest of standards, we also specialize in installing solar power batteries for a home so you’ll have a constant source of electricity—even when the grid is down.
When you trust A&G electric with your California solar energy buy back installation project, you can rest easy knowing that your investment is protected. Our solar systems save many Californians an average of $200 on their monthly power bill, and our design and installation services come with a 20-year warranty on solar panels and a 10-year warranty on electrical services.
With over 20 years of industry experience, we know how to design the perfect solar systems for your California property, carefully taking into account:
A&G Electric’s commitment to solar power is unrivaled. Our team comprises the best experts who bring top-level experience and expertise in alignment with the latest solar programs in California. We take pride in working with local installers rather than national companies, ensuring your investment supports the local economy. Yet, we can compete with any price on a national level.
Installing solar is an exciting process that improves the efficiency and value of your home and provides grid independence while helping to create a more sustainable environment. But we appreciate the first steps can feel overwhelming. That’s why we offer comprehensive solar consultations to help you get the process started. Contact us today to get your free estimate and schedule a consultation with one of our California experts.