The city of San Diego has consistently been at the forefront of solar power use and distribution by making this renewable and free energy one of the top options in powering homes and establishments. In fact, the city’s support behind solar energy is evident in its laws to encourage people to shift towards this energy.
Solar energy systems in San Diego are open to several financial resources to assist homeowners and business establishments in paying for solar system installations. Within the state of California, for instance, federal incentives are given to business entities and households who install a solar system.
Incentives for homeowners
According to energycenter.org, taxpayers who own and live in a home equipped with a solar system will be able to claim a tax credit of 30 percent. This means that when the homeowner buys solar equipment and has it installed in the house, he / she can recoup 30 percent of the purchase and installation costs. This provision is called “Residential Renewable Energy Tax Credit”.
Incentives for business owners
If you own a building used for an office or business, you may claim a 30 percent refund on expenditure for buying and installing a solar system. Also known as “Business Energy Investment Tax Credit”, this incentive for company owners has no cap in terms of the number of solar systems.
These incentives are part of the Emergency Economic Stabilization Act, a federal initiative that started in 2008 to fund solar energy projects and encourage U.S. residents and business owners to go solar. In order to enjoy the solar tax credit, you should satisfy the following requirements:
- You must be a taxpayer of the United States.
- You must be the owner of the home or building where the solar system is going to be installed.
- You should also be the owner of the solar equipment.
You may find more information about solar tax incentives in San Diego by visiting the following links:
- The Library of Congress: Emergency Economic Stabilization Act of 2008
- IRS form for Residential Energy Credit
- IRS form for Business Energy Investment Credit
- Solar Investment Tax Credit information from the Solar Energy Industries Association
[Photo courtesy of Gilbert Mercier on Flickr]