Power Up Your Savings: Understanding Solar Incentives in Southern California

May 13, 2024

Switching to solar energy is an environmentally conscious decision and a financially savvy one, especially in Southern California. Thanks to various federal and state incentives, tax breaks, and rebates, installing solar panels has become increasingly affordable for homeowners and businesses. In this blog post, we'll navigate the landscape of these financial incentives and explain how you can take advantage of them to reduce the cost of your solar energy system.


Federal Solar Investment Tax Credit (ITC):

One of the most significant incentives for solar panel installation is the Federal Solar Investment Tax Credit (ITC). This credit allows you to deduct a portion of the cost of installing a solar energy system from your federal taxes.

  • How It Works: Currently, the ITC offers a 26% tax credit for systems installed by the end of 2022. This percentage will drop to 22% in 2023, and by 2024, residential solar installations will no longer qualify for the ITC, though commercial systems will still receive a 10% credit.
  • Eligibility: The ITC is available to residential and commercial U.S. customers who install solar PV systems.


California Solar Initiative (CSI):

The California Solar Initiative is another program offering solar installation rebates on homes and businesses. While the general market program has reached its capacity and no longer accepts new applications, some specific program segments remain active.

  • CSI-Thermal program: Offers rebates for solar water heating systems, including those for single-family and multifamily homes, as well as commercial, industrial, and agricultural properties.


Self-Generation Incentive Program (SGIP):

For those interested in adding energy storage to their solar system, the SGIP can be particularly beneficial. This program provides rebates for installing energy storage systems, which can enhance the usability and efficiency of your solar power setup.

  • Benefits: Energy storage allows you to store excess solar energy instead of returning it to the grid. This energy can be used during power outages, peak energy usage times, or at night, further reducing your electricity bills and increasing energy independence.


Net Energy Metering (NEM):

Net Energy Metering (NEM) is another crucial incentive for California solar users. Solar energy system owners can receive financial credit for surplus energy produced and fed back into the grid.

  • How It Works: If your system produces more electricity than you need, the excess energy returns to the grid, and you receive a credit on your electric bill.
  • Recent Changes: Be aware that NEM policies are subject to change and vary by utility company. It’s essential to consult with your local utility company or a solar professional to understand the current terms and how they might impact your decision to go solar.


Local Incentives and Rebates:

Various local utilities and governments in Southern California also offer incentives. These can vary widely depending on your location, so it's worth researching what's available in your area. Examples include:

  • Los Angeles Department of Water and Power (LADWP) Solar Incentive Program: Offers a per-watt rebate for solar installations.
  • San Diego Solar Program: Provides financial incentives based on the size of the solar system installed.


Conclusion:

The combination of federal, state, and local incentives makes installing solar panels in Southern California an attractive investment. By reducing initial costs and providing ongoing benefits, these incentives make solar energy more accessible and financially beneficial.


Ready to Explore Solar Options?

If you're considering taking advantage of these incentives and installing a solar system, Asgard Energy is here to help. Our team can guide you through the process, ensuring you maximize all available financial benefits. Contact us today to start your journey towards sustainable and cost-effective solar energy.

Wooden house model with solar panels on the roof,

The Clock is Ticking: Why Now Is the Time To Go Solar

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Beat the 2025 solar tax credit deadline. Install solar with Asgard Energy now to save up to $9,000, lock in lower costs, and gain energy independence.

Illuminating Your Investment: How Solar Panels Boost Home Value in Southern California

November 12, 2024
In the sunny expanse of Southern California, solar power is more than just a way to reduce utility bills—it’s a significant investment in your property. As environmental awareness increases and technology advances, more homebuyers are recognizing the value of homes equipped with solar energy systems. 1. Increased Property Value: Studies consistently show that homes with solar energy systems sell for more than homes without them. According to a Lawrence Berkeley National Laboratory report, homes with solar panels tend to sell for a premium, with buyers willing to pay additional dollars per watt of installed solar capacity. Premium Pricing: This premium can be particularly significant in Southern California, where sunlight is abundant. The exact increase in home value can vary, but it is generally aligned with the cost of the installed solar system and the savings on energy costs it provides. 2. Attractiveness to Buyers: Solar panels are attractive for home buyers concerned about rising energy costs and environmental impact. Saving on electricity immediately upon purchase is a compelling selling point. Market Trends: In environmentally conscious markets like Southern California, homes with solar installations sell faster than those without. Solar panels are viewed as upgrades, like a renovated kitchen or a new roof, making your property stand out in the competitive real estate market. 3. Energy Independence: Solar power significantly reduces reliance on the grid, providing homeowners with energy security. This can be particularly attractive in areas prone to power outages or high electricity prices. Backup Power: Battery storage systems allow solar panels to provide uninterrupted power during outages, adding further appeal and value to the property. 4. Reduced Carbon Footprint: More buyers are looking for sustainable living options that minimize environmental impact. Solar homes offer this benefit, which aligns with the growing societal push towards sustainability. Green Certification: Homes with solar panels might also qualify for green certification programs, further enhancing their attractiveness to potential buyers who prioritize eco-friendly living. 5. Potential for Future Savings: While the upfront cost of solar installation can be substantial, the long-term savings on energy costs are a huge draw. Homebuyers often consider the return on investment in terms of energy savings when purchasing a solar-equipped home. Incentives and Rebates: Additionally, various federal, state, and local incentives, including tax rebates and credits for solar panel installation, can mitigate the initial installation costs and enhance the investment appeal of solar properties. 6. Considerations for Sellers: If you’re considering selling your home with an existing solar energy system, it’s important to highlight the benefits in your home listing. Be prepared to provide potential buyers with documentation such as: Energy Bills: Show past energy bills to demonstrate the cost savings from solar panels. Maintenance Records: Provide details on the system's upkeep and any warranties that can be transferred to the new owner. Solar panels are a smart investment in Southern California’s robust real estate market. They enhance your home's appeal and market value and contribute to a sustainable future. Whether you're planning to sell your home soon or looking ahead, adding a solar energy system can be a lucrative upgrade that sets your property apart in the bustling Southern California housing market. Ready to Go Solar? If you're considering installing solar panels or want more information about how it can impact your property value, contact a local solar provider today . They can provide a tailored estimate of the costs and benefits, helping you make an informed decision that could significantly enhance your home's value and appeal.