California Solar Rebates and Tax Credits

The California Solar Initiative (CSI) is currently offering two rebate structures. An Estimated Performance Based Buyout (EPBB) is paid out in a lump sum when your system is interconnected. Rebates can also be paid out over a period of 5 years in monthly payments. Each month you will receive a check based on the amount your system has produced multiplied by the CSI Performance Based Incentive (PBI) amount. PBI rebates are about 20% higher than EPBB rebates, but require utility grade monitoring.

CSI EPBB Rates

Currently, there is a $1,100 per kilowatt cash rebate for residential and commercial solar power systems that are connected to the utility grid. This is not a tax credit; this is a cash rebate.

CSI PBI Rates

For residential and commercial customers, the CSI will pay you 15¢ per kilowatt-hour (kWh) generated.

Tax Credits

The federal government also offers a thirty percent tax credit. It is important to note that as a credit, and not a deduction, you will receive the 30% back on your federal taxes. Additionally, commercial customers can take a 5-year accelerated tax depreciation on their system cost.

For more information on rebates & tax credits, see the DSIRE website.