www.dsireusa.org - Database of State Incentives

Under the new California Solar Initiative, rebates and tax incentives can cut the cost of your system by as much as 60%.  But rebates go down the longer you wait, so it pays to install solar now for your home or business.  Here are some of the solar incentives available:

Rebates
Utility rebate programs are available up to 30% of the total cost of the system.

Federal, Investment Tax Credit
Residential – 30% Energy Credit (capped at $2000), IRS Form 3468
Home Based Business – At least 20% Business use to be eligible for 30% tax credit on business portion, including depreciation and up to $2000 on residential portion
Commercial - 30% Business Energy Credit, IRS Form 3468

Federal, Pre-1936 Buildings
10% Investment Credit, IRS Form 3468

Federal, Certified Historic Structures
20% Investment Credit, IRS Form 3468

Federal, Agricultural Credits
10% Investment Credit, IRS Form 3468

Federal, Depreciation
Business - Section 179 Deduction (up to $112,000 for 2007) and/or 5-Year Accelerated Depreciation

State, Depreciation
Business           5-Year depreciation method for non-Corporate
12-Year Class Life/Recovery period for Corporate Business Taxpayers

State, Property Tax Exempt
Solar installations are exempt from property tax.
(California Revenue and Taxation Code Section 6353.5)

Property Value
An increase in property value $20 for every $1 saved

ROI
5 to 8 year return on investment, 25 year positive after tax cash flow.
(It compares to a 15% CD)