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Tax incentives

Tax Incentive Overview

Solar is a cost effective and environmentally friendly alternative to relying on PG&E for energy. The federal government recognizes this and provides tax incentives for homeowners and businesses that decide to go solar. These incentives dramatically reduce your costs and save you even more money.

So how much will Tax Incentives save you?

You will receive a 30% federal tax credit for residential or commercial systems. So for example on a $20,000 gross system cost, you get a $6,000 tax credit, making net cost $14,000. The credit can be carried into following years if needed. Alternative Minimum Tax does not affect this credit.

Tax Incentives for Homeowners

The federal government provides a tax credit for 30% of the system cost for homeowners who own their own solar photovoltaic systems. These savings do not apply with a solar lease agreement, so homeowners that own their own system keep these tax credits and experience the most savings. Additionally, California State law prohibits a property tax increase for adding a PV system, so your property value increases with a SunStar system without increasing your tax burden.

For more information about the 30% tax credit, visit the Database of State Incentives for Renewables & Efficiency or contact us.

Solar tax credits automatically reduce the cost of your system and helps you start saving even more money on day one. Tax credits are just one reason solar is such an attractive and high return investment. Learn more about the Return on Investment for a residential system.

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Tax Incentives for Business

Businesses receive a 30% federal tax credit in addition to a 5 year accelerated depreciation (Federal Modified Accelerated Cost Recovery System (MACRS). This incentive helps you recover the initial cost of the system even more quickly.

For more information about the 30% federal tax credit, click here. To learn more about other tax incentives and credits that your business may be eligible for, visit the Database of State Incentives for Renewables & Efficiency. Other incentives exist for business such as agriculture and contractors building energy efficient homes, and your business may qualify.

Tax incentives are just the first step towards saving money for your business with solar. Learn more about the Return on Investment that solar offers businesses.

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