A solar power system on your building is a long term, low risk, and high return way to invest your money. Solar offers an initial annual return on investment of 5-11%. This is very competitive with other higher risk investments such as stocks and bonds. As utility rates increase the annual return increases.

Solar power can reduce or eliminate your electric bill. In addition, any excess solar power can be fed into the utility grid resulting in a credit with the utility company. Some businesses may be able to take advantage of time-of-use metering. This will allow you to feed power into the grid during peak times (when power is most expensive), and draw power from the grid during off peak times (when power cheaper).

A significant portion of the cost is paid for through government incentives. (link: Rebates and Tax Credits for Businesses)

The State of California offers substantial rebates for both large and small commercial solar electric systems. Depending on the size of your facility you will qualify for either the CEC or CPUC rebate programs. These rebates cover as much as 30-50% of the total system cost.

Self-Generation Incentive Program (SGIP)
The California Public Utilities Commission (CPUC) created the Self-Generation Incentive Program (SGIP) in March 2001.

Every year millions of dollars in rebates are distributed to businesses throughout California that install solar electric systems in excess of 30kW. (With the rebate for 2006 set at $2.80 per watt the average cost of 30kW system drops from $250,000 to $166,000.)

In 2006 the CPUC increased funding to the program by an additional $300 Million. But the program is regularly over-subscribed and, even with this increase, the rebates will be gone before the end of the year.

The CPUC is accepting applications from February 1st, 2006 on a first come first served basis. If you’re thinking about installing a solar electric system the time is now.

Contact us to schedule a free site evaluation.

Degryse Electric will...

* Evaluate if your building is right for solar
* Determine which rebate program is best for you
* Help you with the application paperwork

CEC Pilot Performance Based Incentive Program (PBI)
The California Energy Commission administers a program where by business owners will get rebates from California based on the actual energy output of their solar electric system. The CEC currently pays $0.50/kWh/year for 3-years. For some businesses this type of program may be more advantageous than the upfront rebate offered by the Self-Generation Incentive Program. A Degryse Electric Solar Energy Consultant will be able to determine which program is best for based on the specifics of your business.

State Tax Credits
For more information on State Tax Credits visit California Energy Commission. Currently California does not offer a state tax credit for solar electric systems.

Federal Tax Credits
In addition to State rebates and incentives, the Federal government offers a 30% Federal tax credit on solar power systems, and allows businesses to use accelerated depreciation to depreciate the system over 6 years.