In addition to accelerated depreciation rules and a 30-percent renewable energy tax credit** from the federal government, California provides a number of programs that can reduce the total installed costs of a commercial solar energy system. What follows is a brief overview of what's possible. It is by no means a comprehensive list, as many California municipalities sponsor their own individual programs beyond what's available from the state. But it's a good place to start. You'll soon see that California leads the country in efforts to cut installation costs for firms that decide to get solar -- the rebate and financing options are near endless. (Note: the overview below does not cover CA solar public loan programs, nor CA private loan options.)

When you're ready to move forward with your project, simply fill out our solar energy information form. It's free and requires just a few minutes to complete. After learning about your company's energy needs, we'll work with our California solar panel installation partners to get you a free site visit and quote. We're here to make sure that you quality service and a great price on your solar energy system.

**For solar commercial systems installed in 2009 and 2010, businesses may -- instead of taking the federal tax credit -- receive a solar energy grant equal to 30 percent of installed system costs. The grant option has been made possible by the federal stimulus package that was passed in February 2009.

Are you a California homeowner? See our CA residential solar incentive page.

PG&E, SEC, and SDG&E: California Solar Initiative

In January 2006, the Public Utilities Commission (CPUC) set up the California Solar Initiative (CSI) to provide over $3 billion for solar-energy projects. The objective is to put solar panels on a million roofs, statewide -- contributing to an overall target of 3,000 megawatts (MW) of solar capacity installed by 2016. To fulfill CSI mandates, three main utilities -- PGE, SCE and SDG&E -- sponsor the following rebate option:

For small and medium systems: the Expected Performance-Based Buydown (EPBB) program, which provides a per-watt rebate for commercial systems (under 50kW in size)

As the total amount of installed solar capacity grows statewide, the incentive amounts are reduced in predetermined steps. Here is a look at the statewide rebate schedule, courtesy of the California Solar Initiative:

The structure of the rebate schedule naturally provides an incentive to act now. As of July 2010, the EPBB rebate available for small- and medium-sized residential and commercial systems was $0.65/watt for PG&E and SDG&E, while the PBI was $0.09/kWh. For SCE, the EPBB rebate available for small- and medium-sized commercial systems was $1.10/watt and the PBI was $0.15/kWh. The CSI trigger point tracker tracks and displays current incentive levels for residential systems. (Note: SDG&E customers are covered under the CCSE program administrator listing on the CSI trigger point tracker.)

Other utility-sponsored rebates

If your business doesn't purchase power from one of the main investor-owned utilities mentioned above, don't worry: the CSI was expanded in August 2006 to include municipal utilities -- of which California has dozens. For full details on the rebate options available in your service territory, consult the Database of State Renewables & Efficiency (DSIRE), which maintains a near-comprehensive list of available CA utility programs.

[Last updated: 6/26/10]

California: Commercial Solar Incentives