Solar Tax Credits

Solar Tax Credits in Los Angeles 

If you are considering “going solar” at your home or business, there is no better time than now. On this page, we have provided up-to-date information on the available solar tax credits in Los Angeles and elsewhere in California. We break down the benefits that both state and federal government incentive programs offer, so you can get a full picture of the savings that could be in store when you install solar panels or a solar battery

Read on! If you have any questions, do not hesitate to give us a call at (888) 557-2249 or send us a message online.

California Solar Tax Credits Savings Guide 

Below you will find information about federal tax credits first, then details about California’s multiple solar incentive programs:

The Federal Solar Investment Tax Credit (ITC)

This program allows you to claim 30% of the total cost of your solar installation project on your federal taxes. While this amount is not a refund, it can be a discount of thousands of dollars on your taxes. Plus, there is no cap on how much you can claim. The federal ITC is available until 2035, but the 30% credit will begin to decrease incrementally in 2032. 

California Net Metering (NEM)

NEM works by granting utility customers credit on their electric bills for any excess power their solar technologies produce. This means that if your system provides more electricity to the grid than what you use, you get credited for the difference. The amount you can receive through NEM depends on your utility company. The Los Angeles Department of Water and Power (LADWP), Southern California Edison (SCE), Pacific Gas & Electric (PGE), Sacramento Municipal Utility District (SMUD), and others offer NEM benefits. 

California Solar Tax Credits

There are a variety of available incentive programs and solar tax credits in Los Angeles, Simi Valley, and elsewhere in California. 

These include, but are not limited to:

  • Disadvantage Communities—Single-Family Solar Homes (DAC-SASH): This is available to SCE, PGE, and San Diego Gas & Electric (SGE) customers who live on tribal lands or in a community that is among the top 25% most disadvantaged in the state. Those who are looking to utilize this incentive program must also meet income requirements.
  • Self-Generation Incentive Program (SGIP): Home or business owners that have installed a solar battery can get a rebate from this program. The amount depends on the size of the battery. It is also a tiered program and the value of the rebate changes based on how many batteries have been installed across the state. To date, you can receive a rebate of thousands of dollars by bringing an energy storage system to your home or business.
  • Equity and Equity Resiliency Budgets: As part of the SGIP, these two budgets can provide additional rebates for battery installations to a variety of people, businesses, and organizations. Low-income households, those living in areas at risk of fires and public safety power shutoffs (PSPS), and individuals on tribal lands can receive funds from these two budgets. Businesses and organizations that perform critical services in areas that fires or outages frequently affect are eligible as well.
  • Solar Energy Property Tax Exclusion: Through 2024, those who are installing a new solar energy system or constructing a building that features one can exclude increases to their property taxes.

For All Things Solar, Turn to Mega Power Electric Inc. 

With all these great incentive programs, there is no need to wait to “go solar.” At Mega Power Electric Inc., we are the solar experts in Los Angeles and Simi Valley, and we can get you set up with a system that is perfect for your residential or commercial property. To get a free estimate for your installation project, all you have to do is reach out to us. If you accept, we can get started immediately and help you maximize your savings. We also offer great financing options that can make it even easier to get the exact solar technologies you want. 

Call (888) 557-2249 or contact us online