State and Federal Solar Incentives
State and federal benefits can reduce the cost of installation by 50%! Real Goods currently installs solar systems in California and Colorado, where rebate programs vary from each state and each utility.
Federal Tax Credits
You can now receive a federal tax credit of 30% of net system cost after state rebates are deducted (applies for both residential and commercial solar installations). This credit comes directly off the amount of income tax you owe, dollar for dollar. For businesses, the tax credit can be carried forward 15 years or back 3 tax years, and we often see paybacks in as low as 5 years and pre-tax internal rates of return in excess of 25%. The “MACRS” five-year accelerated depreciation schedule is also applicable.
State Rebate Program
Real Goods currently installs solar systems in California and Colorado, where rebate programs vary from each state and each utility.
In California, the California Solar Initiative rebate is currently at $1.10 per watt for residential, $1.10 for commercial installations (except SCE). This rebate goes down as more and more people apply for solar. On average, the state rebate for California residents is usually about 10-15% of the system cost—this is a huge help!
In Colorado, Xcel Energy's Solar*Rewards Program provides an incentive of up to $3.50 per watt for solar systems ranging from 0.5 to 10 kilowatts. The incentive is a $2 per watt rebate and a Renewable-Energy Credit (REC) payment of up to $1.50 per watt. The REC payment can be adjusted up or down, based on the system's expected electricity output.
You Only Pay Us The After-Rebate Price, Without Waiting For The Rebate!
Based upon your projected installed system costs, Real Goods will maximize the rebate and tax credits you’re eligible to receive on your new solar system. Our solar experts will fill out all the paperwork and collect the rebate on your behalf.
Net Metering
Depending on your energy consumption and amount of sunlight available, your solar system will often produce more energy than you use. Instead of going to waste, this excess electricity is sent back to the Utility Grid, via Net Metering. Net Metering allows your meter to spin backwards, "banking" your energy for later use. Net metering laws mandate that your utility company purchase your excess power at retail prices. Every kilowatt-hour (kWh) of solar power not consumed by your household is sold back to your utility at the same rate they would sell it to you!
You will receive credit for this power at the same rate the utility sells it for, so while you may receive a monthly statement from your utility, your actual electric bill will only arrive annually. This bill will reflect the difference between the amount of energy your solar electric system generated for the year, and the amount of energy you consumed (referred to as your ‘true-up’ date).
We realize this is a lot of information to sift through. Our Solar Power Consultants can walk you through the details and find the solution that works best for you. Contact us for a free solar site evaluation and find out how solar can start working for you!
