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5 California solar incentives to take advantage of this year in 2022

As a Sacramento homeowner, you may be wondering if it’s worth it to go solar. The answer is: absolutely! Not only will you be able to save money on your energy bills, but there are also several Sacramento solar incentives available to help reduce the cost of installing a system.

In this article, we outline seven of the most important California solar incentives that you should know about in 2022.

1) Clean Energy Produced on Private Property (PACE)

A loan option known as the Home Energy Renovation Opportunity (HERO) allows property owners to finance their qualified solar energy and energy efficiency projects by deducting the cost of the project from their property taxes. Local or state governments, in collaboration with traditional financiers, fund the upfront costs of the project, with homeowners repaying their local authorities through an increase in their property tax bill, which is typically spread over a 20-year period. In addition to California, PACE programs are presently available in more than 20 other states.

2) The Investment Tax Credit

Although the federal Investment Tax Credit (ITC) is not a California-specific solar tax credit, it offers extra and considerable savings for solar systems. Any homeowner who purchases and owns a solar PV system may claim and deduct 26% of their solar installation expenses from their federal income taxes (tax obligation).

If the value of your tax credit exceeds the amount of your tax due, you may be able to apply any remaining credit to your taxes for the next year.

Please keep in mind that you may only roll over any unused credit once, and the ITC is in addition to any state or municipal solar rebates or incentives you may be eligible for. In addition, the value of the ITC has been reduced from 30% to 26%; it will decline to 22% in 2023 and ultimately to zero for residential installations in 2024 unless Congress acts to extend the tax credit.

So, it will be important to act soon.

3) Net energy metering

Net metering (also known as Net Energy Metering or NEM) is a utility billing method that enables consumers to get credit for the excess energy they create and provide to the utility company. In the United States, net energy metering (NEM) has risen to become the leading method of rewarding solar users for the energy they generate for the grid. In California, NEM is required, and it improves the value of rooftop solar installations.

New participating PV systems must be designed to fit customer demand rather than be larger to qualify, and they must move to a time-of-use power pricing. If you opt to join the NEM, you will earn a bill credit for any surplus solar energy generated by your PV system and exported to the electric grid throughout the program’s duration. The amount of credit you’ll earn (and the amount of money you’ll save on your monthly energy bill) will be determined by the date you installed solar.

4) Solar Energy for Low-Income Housing

The Single-Family Affordable Solar Housing (SASH) program in California offers financial assistance to low-income, single-family homeowners who qualify, as a way to help them cover the initial expenses of installing solar. PG&E, SCE, and SDG&E give a single, upfront incentive amount of $3/Watt to all qualified applicants who live in eligible homes within their respective utility territory. A committee of the CPUC oversees SASH, which is operated by GRID Alternatives.

Applicants to the state’s Multifamily Affordable Solar Housing (MASH) program, which is currently closed to new applicants but may have a waiting list, can receive incentive rates ranging from $0.10 to $1.80 per watt of solar energy generated by qualifying multifamily affordable housing. In SDG&E territory, it is handled by PG&E, SCE, and the Center for Sustainable Energy, with the Center for Sustainable Energy serving the whole state.

5) Incentives on a local level

Many city-level rebate programs have expired, but it’s still worth checking to see if there are any available in your region. The GoSolarSF initiative run by the city of San Francisco provides a one-time monetary incentive to residential, commercial, and charitable organizations to stimulate the installation of solar panels. This program is currently only available to those who qualify for the DAC-SASH incentive category and will be phased down soon.

If you’re looking for ways to save money on your energy bill and increase the efficiency of your home, solar is a great option. And with so many incentives available in California, it’s easier than ever to make the switch.


Contact Aztec Solar today to find out how we can help you go solar and take advantage of all these amazing incentives. We look forward to helping you save money and make a positive impact on the environment!


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