Solar Tax Incentives for California Homeowners in 2022

TENCO SOLAR breaks down the eligibility requirements for solar tax incentives in California in 2022, including:

• Federal Solar Investment Tax Credit
• Self-Generation Incentive Program
• Single-Family Affordable Housing Program
• Local Utility Company Rebates

Sure, solar panels offer incredible utility savings year-round due to their enhanced energy efficiency, but did you know homeowners can also earn a variety of solar tax incentives? It’s true —  California homeowners can save on their taxes by installing solar panels.

There are many different programs available in the state, each of which has different guidelines for how homeowners can take advantage of them. Read on to discover if you qualify for solar tax incentives in California this year.

What Are the Different Solar Tax Incentives Available to California Homeowners?

In 2022, California offers five distinct solar tax incentives homeowners can use to save on their tax obligation. These programs include:

Federal Solar Investment Tax Credit

The Federal Solar Investment Tax Credit (ITC) is a special credit awarded to homeowners who have installed a new solar system in California in 2022. Qualifying solar systems can come with or without a home battery. By taking advantage of the ITC program in 2022, homeowners can qualify for a 30% federal tax credit.

If you’re not ready to install solar panels on your California home yet, you can still take advantage of ITC savings in 2023. However, the residential tax credit drops to 22% in 2023, meaning you won’t save as much on your federal taxes.

Self-Generation Incentive Program

Through the Self-Generation Incentive Program (SGIP), residents can purchase a qualifying home battery along with their rooftop panels to get a rebate for installation. In California, the following customers may be eligible for this energy storage system installation rebate:

• PG&E
• SCE
• SDG&E

Qualifying residents can earn as much as $1,000 per kilowatt-hour (kWh) through this program, allowing them to recover much of the cost of their solar panel system installation.

Solar Energy System Property Tax Exclusion

If you live in California and install new solar panels or build a home with a solar panel system in 2022, you may be eligible for benefits through the Solar Energy System Property Tax Exclusion. Through this program, residents who satisfy the requirements mentioned previously won’t have their property taxes increase until the year 2024.

Not only does installing a new solar system let you save on property taxes, but it also adds tremendous value to your home. In fact, depending on where you live in California, your home value could increase as much as 4.4% just by installing new solar panels.

Single-Family Affordable Housing Program

Low-income households in California are also eligible to receive a one-time, upfront, capacity-based incentive of $3,000 for every kW of home solar installed. To qualify, residents must meet the following requirements:

• Must be a PG&E, SCE, or SDG&E customer.
• The home must be occupied by the homeowners/applicant.
• The household’s total income must be 80% of the Area Median Income or less based on the most recent income tax return.

Local Utility Company Rebates

California residents living in Sacramento and San Francisco can also take advantage of local utility company rebates. In particular, San Francisco’s GoSolarSF program awards cash incentives between $100 and $2,000 per kW of home solar installed for up to 4 kW.

The total value of the incentive depends on the system size, location, and the applicant’s income. Sacramento Municipal Utility District’s solar rebate program also awards a $300 cash incentive to residential customers who install new rooftop solar systems.

Start Reaping Solar Tax Incentives

If you’re a California resident looking to save on your utilities and taxes, turn to the team at TENCO SOLAR for the top-quality solar system solutions you need. Our solar panel experts have helped California families reap the full benefits of their solar panel installation, guiding them through all available tax incentives in the region.

Let our team help you find the right solar panel system for your home by contacting us for a no-obligation quote.