Solar Commercial Incentives

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Federal Tax Credit

The Federal government provides an incentive of 30% for the purchase of any solar system that qualifies. This includes systems such as solar hot water, roof and ground photovoltaic systems, space heating and lighting systems.  For more information about this type of incentive please go to www.seia.org.  The federal tax credit form to submit is the IRS Form 5695

State Tax Credits

Many states offer tax credits in order to promote clean energy.  These tax credits differ by state, but in California as of October 2010, the current rebate is $12.82 per therm or $0.37 per kWh up to a maximum of $1,875. The total incentive is based on a combination of the performance rating of the solar water heater, the orientation of the collectors (you will receive closer to the maximum rebate if they are facing true south), your regional climate, and whether the solar panels will be shaded (collectors should be shaded as little as possible)

Large-scale multi-family and commercial solar water heating system may receive up to $500,000 if they are displacing natural gas or up to $250,000 if they are displacing electricity.





Currently The (CSI) California Solar Initiative is offering two rebates.

  • (EPBB) An Estimated Performance Based Buyout.  This incentive is paid out in a lump sum when your solar system is connected.  On the other hand, Rebates can be paid as monthly payments over a period of 5 years.  Every month you will receive a check based on the quantity your system has created multiplied by the CSI Performance Based Incentive (PBI) total.
  • (PBI) Performance Based Incentive rebates is approximately 20% higher than EPBB rebates.
  • (EPBB) rates are currently about $350 per Kilowatt cash rebate designated to systems connected to the utility grid.
  • Also, The (CSI) California Solar Initiative offers a payment of 5 cents per Kilowatt per hour produced by your system.
  • For additional information about these federal and State energy credits, please go to www.dsireusa.org website.
  • The California solar tax credit and the federal government offer a 30% solar tax credit when you file your taxes. Furthermore, commercial customers can take a 5-year accelerated tax reduction on their system cost through the (MACRS) Modified Accelerated Cost-Recovery System.

 Property Tax Exemption:

Several states offer 100% exclusion on property taxes. This enhancement of the property value with the installation of solar power system will not change the value in determining owner’s property taxes.