Solar Savings
The federal government currently offers a 30% solar tax credit. It is important to note that as a renewable energy credit, and not a deduction, it will decrease to 26% in 2033 and 22% in 2034. Unless renewed by the federal government, the tax credit will end by 2035. Additionally, commercial customers can take a 5-year accelerated tax depreciation on their system cost.
Customers who lease solar panel systems cannot claim the federal tax credit outright, but the benefits are passed to them from the system’s owner or installer, lowering their monthly payment substantially.
Solar Rebates and Renewable Energy Credits
For Northern California residential and commercial customers, your utility company will issue energy credits for excess power your system produces through its net-metering program.