2023 Solar Incentives Guide for Huntington Beach, CA - Tax Credits & Rebates
In this guide, we'll cover the latest solar incentives and rebates available in Huntington Beach.
Local & State Solar Incentives
Federal Tax Credits (Updated for 2023 and beyond)
Ways to optimize your solar investment
Solar installers are experts in maximizing your solar tax credits and rebates.
Get a free quote from one of our trusted Huntington Beach solar installers to see how much you can save.
HOME > SOLAR INCENTIVES > CALIFORNIA > HUNTINGTON BEACH
What Solar Tax Credits, Incentives, and Rebates are Available in Huntington Beach?
Property Tax Exclusion for Solar Energy Systems and Solar Plus Storage System
Incentive Type:
Property Tax Incentive
100% of system value; 75% of system value exemption for dual-use equipment
http://www.boe.ca.gov/proptaxes/active-solar-energy-syste...
Western Riverside Council of Governments - Home Energy Renovation Opportunity (HERO) Financing Program
PACE Financing
Eligible products can be financed for up to 25 years, depending on the useful life of the eligible product.
Minimum financing: $5,000
The financing may not exceed fifteen percent (15%) of the market value of the property, up to the first seven hundred thousand dollars ($700,000) of the property's market value, and ten percent (10%) of the remaining value of the Property above seven hundred thousand dollars ($700,000) minus any PACE assessment on the property The total amount of any annual property taxes and assessments shall not exceed five percent (5%) of the property's fair market value, determined at the time program financing is approved.
https://wrcog.us/DocumentCenter/View/4469/CPP-V2-2018-FINAL
Local Option - Municipal Energy Districts
Locally determined
Self-Generation Incentive Program
For projects 30 kW or larger, 50% of incentive will be received up-front; 50% will be received based on actual kWh production over the first 5 years. For projects under 30kW, 100% of the incentive will be paid up front.
Incentives will step down over time. See below for incentive amounts.
https://www.selfgenca.com/
Renewable Market Adjusting Tariff (ReMAT)
Feed-in Tariff
http://www.cpuc.ca.gov/feedintariff
LADWP - Feed-in Tariff (FiT) Program
$0.17/kWh adjusted by a time of delivery multiplier
Base price will step down over time as certain MW goals are met
https://www.ladwp.com/fit
California Solar Initiative - Solar Thermal Program
Step 1 Incentive Rates (contact utility to determine current incentive levels):
Single Family Residential Incentives:
Systems that displace natural gas: $29.85 per estimated therm displaced
Systems that displace electricity or propane: Funding has been exhausted
Commercial/Multifamily Incentives:
Systems that displace electricity or propane: $0.42 per estimated kWh displaced *** Note, funding has been exhausted in this category for SCE and PG&E
Solar Pool heating: $5.00 per estimated therm displaced
http://www.gosolarcalifornia.ca.gov/solarwater/index.php
Federal Residential Renewable Energy Tax Credit
Personal Tax Credit
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
https://www.ecowatch.com/solar/ev-appliance-solar-tax-cre...
Source: https://www.dsireusa.org/
The phrase "solar incentives" includes a range of financial incentives designed to make installing and using solar panels more affordable. This is done to encourage people to switch to renewable energy. You might be eligible for various types of incentives, such as cash back, discounts or credit towards your monthly utility bill, depending on your situation. Some incentives come from your specific utility company, county or municipality, some from the state of California and others from the federal government. Types of solar incentives might include:
Net Metering: You can sign a net metering contract with your Huntington Beach utility company, that may apply to all or a percentage of the excess electricity your solar panels generate. They will then deduct this value from your monthly utility bill.
Rebates: Rebates, or cash back after a purchase, are normally applied prior to any solar tax credits being calculated. Rebates can be provided by your local utility company, by your state or by your county.
Solar Renewable Energy Certificate (SREC): SRECs are credits that can be sold to your utility company (or other buyers) for money that is generally considered part of your taxable income. Typically, a certain (small) threshold of energy production must be met before your solar system qualifies for SRECs or similar performance-based incentives. SRECs and similar incentives are normally handled at the state level.
Tax Credits: Tax credits reduce, dollar-for-dollar, the amount of income tax you owe the government. Tax credits differ from tax deductions.
Tax Exemptions: Your solar panels might qualify for both sales tax and property tax exemptions. Sales tax exemptions come into effect at the time of purchase. Property tax exemptions let you ignore the value that solar panels add when you are calculating property taxes on your home.
Federal Solar Incentives
When thinking about solar incentives, you probably think of federal incentives first. You may have heard of the Federal Solar Investment Tax Credit, or ITC. This incentive is a tax credit equal to a predetermined percentage of the money you spend installing solar panels.
The ITC originally covered 30% of the total cost of solar system installation, although it has fluctuated slightly over the years between 26-30%. The installation date of your solar system will determine what percentage you qualify for. The total cost of installation includes the panels themselves as well as the cost of equipment, labor and accessories. There is no maximum amount you can claim. The ITC applies to solar panels installed after January 1, 2006 on your primary or secondary residence. The residence must be in the United States and owned by you.
Reaching out to your local Huntington Beach solar panel installer is the best way to learn more about how the ITC could apply to your situation.
The Inflation Reduction Act, passed in August 2022, expanded and extended the ITC (as well as retitling it the Clean Energy Credit). The new Clean Energy Credit now runs until 2035. Homeowners are now eligible for a 30% credit for solar systems installed between 2022 and 2032. The total credit will then see a slight annual decrease until the date of expiration. Starting in 2023, the expansion to the program will also make claiming credit for energy storage systems easier than ever before.
More information about the new Inflation Reduction Act can be found here. Your local Huntington Beach solar panel installers are the best people to answer your questions about the new Clean Energy Credit and how it will apply to you.
State & Local Solar Incentives
Some solar incentives may be provided at the state and local level. Similar to federal incentives, these can include rebates, tax credits and more. These solar incentives — which might be provided by the state of California, or by your county or municipality — could be offered for only a limited time, or on an ongoing basis.
Next Steps for Installing Solar in Huntington Beach
Solar incentives can come from the California government, the federal government or your local utility company. The variety of available incentives has helped nationwide use of solar energy increase greatly in the last 15 years. Your local Huntington Beach solar panel installation company can help you learn more about which incentives you should apply for, and get you feeling good about making the change to renewable energy today.
EcoWatch's Huntington Beach, CA Solar Incentives FAQs
How much can I save on my electric bill annually if I add solar panels to my Huntington Beach home?
When you add solar panels to your home in Huntington Beach, you can anticipate savings of approximately $1,301.50 per year, or approximately $24,728.56 over the next 20 years.
What are some environmental benefits of installing solar panels on my home?
Solar energy is a renewable energy source — by changing where you get your energy, you help reduce the strain on our planet's resources. A solar system can also lower the CO2 emissions from your home by 250 pounds a year, or roughly 5,000 pounds in 20 years.
If I change out my appliances for ones that utilize solar energy, are there benefits that I can claim?
With the passage of the new Inflation Reduction Act, there are a number of new financial incentives for making eco-friendly improvements to your home. More details about these incentives, including information about incentives for purchasing new appliances, can be found here.
Can I qualify for incentives both towards the up-front cost of solar panels, and later as reimbursement?
The order your incentives will be applied in may vary depending on which incentives you receive but typically yes, you can claim multiple types of incentives for your solar project. Get in touch with your solar installer or a local tax professional to confirm you are claiming all possible incentives and applying them in the correct order.
Can I use a combination of solar and another type of renewable energy to power my home?
Yes, you can use multiple types of renewable energy to power your home — for example, a combination of wind and solar. You can also use both renewable energy sources and a non-renewable backup source of energy. You should discuss the details of your plan with your local Huntington Beach solar panel installer, to get an understanding of what will be needed and what types of incentives you may or may not qualify for.
Solar incentive research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.
Other Services in Huntington Beach
Solar Panel Cost in Huntington Beach, CA
Solar Companies in Huntington Beach, CA
Gutter Service in Huntington Beach, CA
Window Companies in Huntington Beach, CA
More Solar Tax Credits & Rebates Near Me
View Park Windsor Hills, CA
Laguna Hills, CA
Valinda, CA
Maywood, CA
Westmont, CA
Willowbrook, CA
Lennox, CA