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Solar Incentives

Solar Panels

Solar Resources

There are many programs and resources to help individuals and businesses go solar, including federal tax credits and several different financing options. And remember, the less energy a building uses, the less solar equipment is needed.

  • MCE has a generous net energy metering (NEM) program for rooftop solar.

  • MCE electricity customers interested in installing renewable energy systems can take advantage of MCE's Feed-In Tariff program, which offers a standard 20-year contract and a fixed price per kWh generated.

  • PACE Financing allows property owners to finance energy efficiency, water conservation, renewable energy, and electric vehicle infrastructure upgrades to their property by repaying the cost of the improvements through a voluntary assessment on their property tax bill. Some lenders may require the PACE assessment to be repaid before refinancing or selling your home. There are many options for financing solar, including home equity loans and PPA agreements, so consider what is best for you.

  • The U.S. Department of Energy’s Guide to Solar organizes the process of installing solar into a step-by-step guide.

  • The Bay Area SunShares program runs annually from September to November (this year, the program will be available from September 1- November 15). SunShares is a renewable energy program that makes it easier and more affordable for Bay Area residents to get solar and battery storage equipment. Plus, residents can participate in SunShares and still take advantage of the 30% federal solar tax credit!

Federal Solar Tax Credit

The residential federal solar tax credit has been increased to 30% of project costs and was extended through the 2032 through the Inflation Reduction Act. 

Federal solar tax credits for businesses are available as well.

For more information on tax credits, see our Rebates and Loans page.

Combining the Battery Storage Tax Credit and Rebate with Solar in Homes

Residents can save thousands of dollars in project costs when installing a battery storage system at the same time as solar. A battery storage system will let you use the solar power you generate at any time of the day or night so that you won't have to buy electricity from your utility once the sun goes down. Having a battery storage system installed will also increase your home's resilience, since it will allow you to use stored electricity if there is a power outage.

In addition to the utility bill savings, there is now a 30% federal tax credit to install a battery storage system in your home, in addition to a state rebate through the Self-Generation Incentive Program (SGIP) that covers anywhere from 25% to almost 100% of the initial system’s cost. 

Also, MCE offers a credit of up to $20 per month to residents who have solar and a battery storage system and commit to using the solar stored on their battery from 4-9 pm every day.

The SGIP battery storage system rebate is also available for commercial property owners.

Comparison of Solar Financing Options

 

Payment Option

 

Direct Payment

 

Loan (PACE and Green Loan)

 

Lease or Power Purchase Agreement (PPA)

 

Advantages

 

Least expensive option

Claim a federal tax credit

No monthly payment

Does not impact your credit score

Own the solar system

 

Most available option for homeowners

Low upfront investment, sometimes no down payment

Own the solar system

 

Low monthly fees

No down payment or low upfront investment

Often includes maintenance and guarantee agreement

Pay for solar monthly, at a rate potentially lower than your current utility

 Disadvantages  

Significant upfront cost

 

Homeowner must have good credit and/or enough equity in home to finance system

 

Do not own system

PPA-specific requirements

20-year payment on system

Restrictions on roof modifications