You can enjoy any California solar initiative with the right information. The state features no state-level solar tax credit. Nevertheless, it still remains the foremost state regarding the ROI you could make from the installation of home solar. The state’s residents can still take total advantage of the NEM-2 net metering and the thirty percent federal solar tax credit which, both still remain valuable solar incentives. This article brings you the key incentives you can presently enjoy in California by installing solar in your home.

The state’s excellent program for net metering

Though precise rules virtually vary from one utility to the other, in California, power companies must offer net metering to their solar clients. If your system happens to generate more power than your home’s energy requirements, then the excess power that was generated is sold to the utility via the grid. By law, the utility firm has to value every KWh you send to them at the same retail price you are paying as credit against your electricity bill. When your solar is not generating sufficient energy to meet your home’s power requirements, then energy gets drawn from the grid in the normal way.

NEM2 rules with PG&E, SCE, and SDG&E

Clients of PG&E, SCE, and SDG&E are given what’s known as NEM-2 net metering which features varying rules. NEM-2 demands that solar clients switch to time-of-use billing so they can receive net metering. Nevertheless, this kind of billing makes not much difference to net metering in returns. But if you are among those that have been asking the question ‘what is California solar initiative?’ know that this is among its key features. NEM-2 comprises what’s known as non-by passable charges. Roughly, these charges are 2 cents per KW and are applied to the energy that your residence draws from the grid and can’t be offset with your net metering credits. The 2 cents might not appear to be much for some individuals, but just visualize how much it could add up to if you think about the amount of KWh you consume in your house every single month. This could certainly add up to a tidy sum of money by the end of the year.

The 30% federal solar tax credit

If you happen to have any federal income tax liability, you can claim 30% of your solar installation cost as a tax deduction.

How do you claim the tax credit?

Several and varying individuals are quite aware of the federal tax credit for installing solar but are ignorant of how to claim it. Well claiming it is not as challenging as many people make it out to be. To claim your benefit of the 30% federal solar tax credit, all that you will need to do is just complete the form 5695 whenever you file your taxes at the end of the fiscal year. It is as simple as that.

These are the key incentives that are offered by the California solar initiative which, you can enjoy at this particular point in time. There are others planned for the near future. So, you should ensure that you remain current so you latch on whenever they are rolled out.