Live in another state? See all our Solar Incentives by
State
Californians have been long time advocates for solar power. So much so, California has become the nation’s pioneer and leader when it comes to “going solar”. Other states look to California to see the trail that’s been blazed with their California Solar Initiative, a statewide rebate program that’s now over.
Nonetheless, all Californians can take advantage of the 26%
Federal Tax Credit, which will allow you to recoup 26% of
your equipment AND installation costs for an unlimited amount.
There may still be other local rebates from your city, county, or utility. Check below!
California Solar PV Rebates & Incentives
Data from DSIRE. Last updated: 03/27/2023
Name | Administrator | Budget | Last Updated | End Date | DSIRE ID | Summary | ||||||||||||||||||||||||||||||||||||||||
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Self-Generation Incentive Program | California Public Utilities Commission | $166 million annually | 03/10/23 | 03/27/23 | 552 | Note: A.B. 209 of 2022 extended eligibility for this program to residential solar photovoltaic systems paired with energy storage systems. The CPUC will need to develop rules before these new incentives are available. Initiated in 2001, the Self-Generation Incentive Program (SGIP) offers incentives to customers who produce electricity with wind turbines, fuel cells, various forms of combined heat and power (CHP) and advanced energy storage. Retail electric and gas customers of San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), Southern California Edison (SCE) or Southern California Gas (SoCal Gas) are eligible for the SGIP. Beginning in May 2012, all technologies previously eligible for the expired Emerging Renewables Program are now eligible for the SGIP program. Originally set to expire at the end of 2011, SB 412 of 2009 extended the expiration date to January 1, 2016, and SB 861 of 2015 further extended the expiration date to January 1, 2021. The program was later extended through January 1, 2026. Systems less than 30 kW will receive their full incentive upfront. Systems with a capacity of 30 kilowatts (kW) or greater will receive half the incentive upfront, and the the other half will be paid over the following five years based on the actual performance. The following technologies will receive the corresponding upfront incentive (or half of this figure if the system is 30 kW or larger): Generation Technologies as of October 2022:
Storage Technologies as of October 2022:
The biogas incentive is an adder and may be used in conjunction with fuel cells or any conventional CHP technology. For example, a gas turbine that uses biogas is eligible for an incentive of $1.73/W. An additional incentive of 20 percent will be provided for the installation of eligible distributed generation or advanced energy storage technologies produced by California supplier. There is no minimum or maximum eligible system size, although the incentive payment is capped at 3 MW. Further, the first megawatt (MW) in capacity will receive 100% of the calculated incentive, the second MW will receive 50% of the calculated incentive, and the third MW will receive 25% of the calculated incentive. Applicants must pay a minimum of 40% of eligible project costs (the biogas adder is not included in calculating the limit). Projects using the Federal Investment Tax Credit (ITC) must pay 40% of the eligible project costs after the ITC is subtracted from the project costs (i.e., the SGIP credit is limited to 30% of project costs).
PG&E, SCE, and SoCal Gas administer the SGIP program in their service territories, and the California Center for Sustainable Energy administers the program in SDG&E's territory. Customers of PG&E, SDG&E, SCE and SoCal Gas should contact their program administrator for an application, program handbook and additional eligibility information. | ||||||||||||||||||||||||||||||||||||||||
Property Tax Exclusion for Solar Energy Systems and Solar Plus Storage System | California State Board of Equalization | 03/16/23 | 01/01/25 | 558 | Section 73 of the California Revenue and Taxation Code allows a property tax exclusion for certain types of solar energy systems installed between January 1, 1999, and December 31, 2024. This section was amended by AB 1451 in September 2008 to include the construction of an active solar energy system incorporated by an owner-builder in the initial construction of a new building that the owner-builder does not intend to occupy or use. This only applies if the owner-builder did not already receive an exclusion for the same active solar energy system and only if the initial purchaser purchased the new building prior to that building becoming subject to reassessment to the owner-builder. ABX1-15 of 2011 clarified that systems installed through sale-leaseback arrangements or partnership flip structures can benefit from this exclusion. Click here and here for Letters to Assessors from the State Board of Equalization that further explain the impact of ABX1-15. Qualifying active solar energy systems are defined as those that "are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy." These include solar space conditioning systems, solar water heating systems, active solar energy systems, solar process heating systems, photovoltaic (PV) systems, and solar thermal electric systems, and solar mechanical energy. Solar pool heating systems and solar hot-tub-heating systems are not eligible. | |||||||||||||||||||||||||||||||||||||||||
Business Energy Investment Tax Credit (ITC) | U.S. Internal Revenue Service | 12/09/22 | 03/27/23 | 658 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including expanding the eligible technologies, extending the expiration date, modifying the scheduled step-down in its value, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 48 of the Internal Revenue Code and replaces it with a new technology-neutral tax credit under section 48E of the Internal Revenue Code. The summary below describes the current section 48 tax credit as modified by the Inflation Reduction Act, and below that, the new 48E tax credit. The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently and most significantly by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full 30% tax credit. The Department of the Treasury issued Initial Guidance on these requirements on November 30, 2022 . According to law, the labor provisions apply to projects for which construction begins 60 days or more after Treasury publishes its guidance. Given the publishing date of November 30, 2022, the effective date for the labor provisions is January 30, 2023. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 30% tax credit. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit of 30%. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines (January 29, 2023) and no later than January 1, 2025 will receive a base tax credit of 6%. However, projects can qualify for the full 30% tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for 5 years after project completion are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credits under the new Clean Electricity Investment Tax Credit (48E) described below. Bonus Credits Projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States can qualify for the Domestic Content Bonus. for projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Domestic Content Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Domestic Content Bonus increases the tax credit by 2 percentage points. Projects that are located within an energy community can receive the Energy Community Bonus. To qualify, a facility must be located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. For projects that are under 1 MW and projects that are larger than 1 MW and meet the labor requirements specified above, the Energy Community Bonus increases the tax credit by 10 percentage points. For larger projects that do not meet the labor requirements, the Energy Community Bonus increases the tax credit by 2 percentage points. Solar and wind facilities less than 5 MW may also be eligible for low-income bonuses. A project built in a low-income community as defined by the New Markets Tax Credit or on Indian Land can receive an increased tax credit of 10 percentage points. A project associated with a low-income residential building project or a low-income economic benefit project can receive an increased tax credit of 20 percentage points.
Eligible Technologies
Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Electricity Investment Tax Credit (48E) Section 13702 of the Inflation Reduction Act created a new tax credit, the Clean Electricity Investment Tax Credit to replace the traditional ITC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the ITC, but is not technology-specific. It applies to all generation facilities and energy storage systems that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, but will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Personal) | U.S. Internal Revenue Service | 07/20/22 | 03/27/23 | 666 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||
Modified Accelerated Cost-Recovery System (MACRS) | U.S. Internal Revenue Service | 08/21/18 | 03/27/23 | 676 | Note: The Tax Cuts and Jobs Act of 2017 increased bonus depreciation to 100% for qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in certain property through depreciation deductions. The MACRS establishes a set of class lives for various types of property, ranging from three to 50 years, over which the property may be depreciated. A number of renewable energy technologies are classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A), often known as the energy investment tax credit or ITC to define eligible property. Such property currently includes*:
In addition, for certain other types of renewable energy property, such as biomass or marine and hydrokinetic property, the MACRS property class life is seven years. Eligible biomass property generally includes assets used in the conversion of biomass to heat or to a solid, liquid or gaseous fuel, and to equipment and structures used to receive, handle, collect and process biomass in a waterwall, combustion system, or refuse-derived fuel system to create hot water, gas, steam and electricity. Marine and hydrokinetic property includes facilities that utilize waves, tides, currents, free-flowing water, or differentials in ocean temperature to generate energy. It does not include traditional hydropower that uses dams, diversionary structures, or impoundments.
Bonus Depreciation Bonus Depreciation History
The 50% first-year bonus depreciation provision enacted in 2008 was extended (retroactively for the entire 2009 tax year) under the same terms by the American Recovery and Reinvestment Act of 2009 (H.R. 1), enacted in February 2009. It was renewed again in September 2010 (retroactively for the entire 2010 tax year) by the Small Business Jobs Act of 2010 (H.R. 5297). In December 2010 the provision for bonus depreciation was amended and extended yet again by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (H.R. 4853). Under these amendments, eligible property placed in service after September 8, 2010 and before January 1, 2012 was permitted to qualify for 100% first-year bonus depreciation. The December 2010 amendments also permitted bonus depreciation to be claimed for property placed in service during 2012, but reverted the allowable amount from 100% to 50% of the eligible basis. The 50% first-year bonus depreciation allowance was further extended for property placed in service during 2013 by the American Taxpayer Relief Act of 2012 (H.R. 8, Sec. 331) in January 2013. The Tax Increase Prevention Act Of 2014 (H.R. 5771, Sec. 125), extended these provisions through to December 31, 2014, and thus retroactively for the 2014 tax year. | |||||||||||||||||||||||||||||||||||||||||
Residential Energy Conservation Subsidy Exclusion (Corporate) | U.S. Internal Revenue Service | 07/20/22 | 03/27/23 | 727 | According to Section 136 of the U.S. Code, energy conservation subsidies provided (directly or indirectly) to customers by public utilities* are non-taxable. This exclusion does not apply to electricity-generating systems registered as "qualifying facilities" under the Public Utility Regulatory Policies Act of 1978 (PURPA). If a taxpayer claims federal tax credits or deductions for the energy conservation property, the investment basis for the purpose of claiming the deduction or tax credit must be reduced by the value of the energy conservation subsidy (i.e., a taxpayer may not claim a tax credit for an expense that the taxpayer ultimately did not pay). The term "energy conservation measure" includes installations or modifications primarily designed to reduce consumption of electricity or natural gas, or to improve the management of energy demand. Eligible dwelling units include houses, apartments, condominiums, mobile homes, boats and similar properties. If a building or structure contains both dwelling units and other units, any subsidy must be properly allocated. The definition of "energy conservation measure" implies that utility rebates for residential solar-thermal projects and photovoltaic (PV) systems may be non-taxable. However, the IRS has not ruled definitively on this issue. Taxpayers considering using this provision for a renewable energy system should discuss the details of the project with a tax professional. Other types of utility subsidies that may come in the form of credits or reduced rates might also be non-taxable, according to IRS Publication 525. | |||||||||||||||||||||||||||||||||||||||||
Renewable Electricity Production Tax Credit (PTC) | U.S. Internal Revenue Service | 09/09/22 | 03/27/23 | 734 | Note: The Inflation Reduction Act of 2022 (H.R. 5376) made several significant changes to this tax credit, including extending the expiration date, providing for new bonus credits, and establishing new criteria to qualify for the full credit. It also phases out this tax credit under section 45 of the Internal Revenue Code at the end of 2024 and replaces it with a new technology-neutral tax credit under section 45Y of the Internal Revenue Code. The summary below describes the current section 45 tax credit as modified by the Inflation Reduction Act, and below that, the new 45Y tax credit. The federal renewable electricity production tax credit (PTC) is an inflation-adjusted per-kilowatt-hour (kWh) tax credit for electricity generated by qualified energy resources and sold by the taxpayer to an unrelated person during the taxable year. The duration of the credit is 10 years after the date the facility is placed in service. Originally enacted in 1992, the PTC has been renewed and expanded numerous times, most recently by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger system to qualify for the full value of the tax credit -- 2.6 cents per kilowatt-hour (kWh) for wind, closed-loop biomass, and geothermal energy; 1.3 cents per kWh for open-loop biomass facilities, small irrigation power facilities, landfill gas facilities and trash facilities. In late-2022 or 2023, the Treasury Secretary will issue guidance for these new labor provisions. The credit for different project types and available bonus credits is described below. Base Credit Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards established by the Inflation Reduction to receive the full 1.3 or 2.6 cents/kWh (depending on the facility type) tax credit. This amount may be adjusted annually for inflation. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Projects over 1 MW that begin construction 60 days after the Treasury Secretary releases labor guidelines and no later than January 1, 2025 will receive a base tax credit of 0.5 cents/kWh. However, projects can qualify for the full tax credit if they ensure that all laborers and mechanics involved in the construction of the project or the maintenance of the project for the entire 10-year PTC period are paid wages at rates not less than prevailing wages. Projects must also ensure that a percentage of total labor hours are performed by qualified apprentices. The percent of hours increases over time to a maximum requirement of 15% in 2024 and thereafter. Note, projects that commence construction on or after January 1, 2025 can receive a tax credit under the new Clean Energy Production Tax Credit (45Y) described below. Bonus Credits The Domestic Content Bonus increases the credit amount by 10% for projects in which 100% of any steel or iron that is a component of the facility and 40% of the manufactured products that are components of the facility were produced in the United States. Note, the required percentage of domestic manufactured products for offshore wind facilities is 20%. The Energy Community Bonus increases the credit amount by 10% for projects that are located at one of the following: (i) a brownfield site, (ii) a metropolitan or non-metropolitan statistical area which (A) has (or, at any time during the period beginning after December 31, 2009, had) 0.17% or greater direct employment or 25% or greater local tax revenues related to the extraction, processing, transport, or storage of coal, oil, or natural gas, or (B) has an unemployment rate above the national average for the previous year, or (iii) a census tract or a census tract that is adjoining a census tract in which a coal mine has closed after 1999 or a coal-fired electric generating unit was retired after 2009. Credit Monetization Section 13801 of The Inflation Reduction Act of 2022 also established procedures for other parties to monetize certain tax credits, including this one, for equipment placed in service on or after January 1, 2023 and through December 31, 2032. The direct pay option allows non-taxable entities to directly monetize certain tax credits. The provisions apply to nonprofits, a state or political subdivision thereof, the Tennessee Valley Authority, Indian tribal governments (as defined in Section 30D(g)(9)), any Alaska Native Corporation (as defined in Section 3 of the Alaska Native Claims Settlement Act), or any corporation operating on a cooperative basis which is engaged in furnishing electric energy to persons in rural areas. Such applicable entities can elect to be treated as having made a tax payment equal to the value of the tax credit they would otherwise be eligible to claim. The entity can then claim a refund for the excess taxes they are deemed to have paid. The option effectively makes this tax credit refundable for these entities. The act also allows eligible taxpayers to transfer all or a portion of their eligible tax credits to an unrelated taxpayer. Transfers must be reported to IRS and only one transfer is permitted. Must be elected no later than the due date for tax filing for the tax year the tax credit is claimed. Clean Energy Production Tax Credit (45Y) Section 13701 of the Inflation Reduction Act created a new tax credit, the Clean Energy Production Tax Credit to replace the traditional PTC for systems placed in service on or after January 1, 2025. The tax credit is functionally similar to the PTC, but is not technology-specific. It applies to all generation facilities that have an anticipated greenhouse gas emissions rate of zero. The credit amount is generally calculated in the same manner as described above, and all technologies that satisfy the labor requirements will be eligible for the full value of the tax credit as adjusted for inflation. The credit will be phased out as the U.S. meets greenhouse gas emission reduction targets. For a project whose construction is commenced in the year following the year in which greenhouse gas emissions from the production of electricity in the United States are equal to or less than 25% of the 2022 levels, the tax credit will not be reduced. However, for projects commenced in the second year following the target being met, the tax credit will be worth 75% of what it would otherwise be. Projects commenced in the third year will receive a credit worth 50%, and all projects commenced after then will not be eligible for a tax credit. | |||||||||||||||||||||||||||||||||||||||||
Energy-Efficient Mortgages | 08/05/20 | 03/27/23 | 742 |
Homeowners can take advantage of energy efficient mortgages (EEM) to either finance energy efficiency improvements to existing homes, including renewable energy technologies, or to increase their home buying power with the purchase of a new energy efficient home. The U.S. federal government supports these loans by insuring them through Federal Housing Authority (FHA) or Veterans Affairs (VA) programs. This allows borrowers who might otherwise be denied loans to pursue energy efficiency, and it secures lenders against loan default.
Loan amounts may not exceed the projected savings of the energy efficiency improvements. These loans may be combined with FHA 203 (h) mortgages available to victims of presidentially-declared disasters and with financing offered through the FHA 203 (k) rehabilitation program. FHA loan limits do not apply to the EEM. Borrowers must obtain a home energy assessment by a qualified energy rater, assessor, or auditor using whole-assessment standards, protocols, and procedures.
ENERGY STAR Partnership for Lenders | ||||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Grants | U.S. Department of Agriculture | $600 million for FY 2018 | 08/21/18 | 03/27/23 | 917 | Note: The U.S. Department of Agriculture's Rural Development issues periodic Notices of Solicitation of Applications for the Rural Energy for America Program (REAP) in the Federal Register. The FY 2018 solicitation for the REAP program includes a total budget of approximately $800 million. The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | ||||||||||||||||||||||||||||||||||||||||
Office of Indian Energy Policy and Programs - Funding Opportunities | U.S. Department of Energy | 02/26/20 | 03/27/23 | 918 | The U.S. Department of Energy's (DOE) Office of Indian Energy Policy and Programs promotes tribal energy sufficiency, economic growth, and employment on tribal lands through the development of renewable energy and energy efficiency technologies. The program provides financial assistance, technical assistance, and education and training to tribes for the evaluation and development of renewable energy resources and energy efficiency measures. DOE's program offerings consist of program management through DOE headquarters, program implementation and project management through DOE's field offices, and technical support through DOE laboratories. Program management is carried out by DOE's Weatherization and Intergovernmental Program, which provides programmatic direction and funding to DOE field offices for program implementation. DOE's Golden Field Office solicits, awards, administers, and manages financial assistance agreements. Program funding is awarded through a competitive process. Click here to view current program funding opportunities, and here to apply for technical assistance. | |||||||||||||||||||||||||||||||||||||||||
San Diego County - Green Building Program | County of San Diego | 07/21/22 | 03/27/23 | 1105 | The County of San Diego has a Green Building Incentive Program designed to promote the use of resource efficient construction materials, water conservation and energy efficiency in new and remodeled residential and commercial buildings. As part of the program, for qualifying resource conservation measures, the County will reduce building permit and plan check fees by 7.5% and grant expedited plan checks. To qualify for these conservation incentives, the project must comply with the program requirements for either natural resources conservation, water conservation, or energy conservation | |||||||||||||||||||||||||||||||||||||||||
Residential Renewable Energy Tax Credit | U.S. Internal Revenue Service | 08/16/22 | 12/31/34 | 1235 | Note: Section 13302 of The Inflation Reduction Act of 2022 (H.R. 5376) extended the expiration date and modified the phase down of this tax credit. It also made stand-alone energy storage systems eligible for the credit, and biomass heaters ineligible for the credit. Biomass heaters are now eligible for the residential energy efficiency tax credit. The summary below reflects the credit after the enactment of H.R. 5376. A taxpayer may claim a credit for a system that serves a dwelling unit located in the United States that is owned and used as a residence by the taxpayer. Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the "placed in service" date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The maximum allowable credit, equipment requirements and other details vary by technology, as outlined below. Solar-electric property
Solar water-heating property
Fuel cell property
Small wind-energy property
Geothermal heat pumps
Battery Storage Systems (Standalone Systems)
Significantly, The American Recovery and Reinvestment Act of 2009 repealed a previous limitation on the use of the credit for eligible projects also supported by "subsidized energy financing." For projects placed in service after December 31, 2008, this limitation no longer applies. Energy Storage Prior to the enactment of the Inflation Reduction Act of 2022, the federal tax code did not explicitly reference energy storage, so stand-alone energy storage systems did not qualify for the tax credit. However, the IRS issued Private Letter Rulings in 2013 and 2018, which address energy storage paired with PV systems. In both cases, the IRS ruled that the energy storage equipment when paired with PV met the statutory definition of a "qualified solar electric property expenditure," as was eligible for the tax credit. It is important to note that Private Letter Rulings only apply to the taxpayer who requested it, and do not establish precedent. Any taxpayer considering the purchase of an energy storage system should consult their accountant or other tax professional before claiming a tax credit. History Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property initially applied to solar-electric systems, solar water heating systems and fuel cells. The Energy Improvement and Extension Act of 2008 extended the tax credit to small wind-energy systems and geothermal heat pumps, effective January 1, 2008. Other key revisions included an eight-year extension of the credit to December 31, 2016; the ability to take the credit against the alternative minimum tax; and the removal of the $2,000 credit limit for solar-electric systems beginning in 2009. The credit was further enhanced in February 2009 by The American Recovery and Reinvestment Act of 2009, which removed the maximum credit amount for all eligible technologies (except fuel cells) placed in service after 2008. | |||||||||||||||||||||||||||||||||||||||||
Burbank Water & Power - Green Building Incentive Program | Rebates | 01/25/23 | 03/27/23 | 1660 | The U.S. Green Building Council is a non-profit organization that promotes the design and construction of buildings that are environmentally responsible, profitable, and healthy places to live and work. The Green Building Council developed the Leadership in Energy and Environmental Design (LEED) Green Building Rating System in order to more accurately provide incentives those using these practices. The LEED Green Building Rating System issues points across five categories to those striving to attain LEED status for new commercial construction or major renovation of commercial buildings, as well as multifamily and mixed-use developments that are five units or greater, or four stories or higher. Rebates provided by Burbank Water & Power correspond to the following point totals and LEED certification levels:
Incentives are on a first come first serve basis. More information can be found on the web site listed above. | |||||||||||||||||||||||||||||||||||||||||
LADWP - Non-Residential Energy Efficiency Incentive Program | Los Angeles Department of Water and Power | 05/31/22 | 03/27/23 | 1866 | Los Angeles Department of Water and Power offers prescriptive and custom incentives to non-residential customers for the installation of energy saving measures, equipment, or systems through a variety of programs, including:
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Clean Renewable Energy Bonds (CREBs) | U.S. Internal Revenue Service | 08/15/18 | 03/27/23 | 2510 | Note: The Tax Cuts and Jobs Act of 2017 repealed section 54C of the Internal Revenue Code, which authorized the use of New CREBs. IRS Notice 2018-15 announced that the IRS will no longer process applications for or issue allocations of New CREBs. The summary below describes CREBs before they were repealed, and is here for historical purposes only.
Clean renewable energy bonds (CREBs) may be used by certain entities -- primarily in the public sector -- to finance renewable energy projects. The list of qualifying technologies is generally the same as that used for the federal renewable energy production tax credit (PTC). CREBs may be issued by electric cooperatives, government entities (states, cities, counties, territories, Indian tribal governments or any political subdivision thereof), and by certain lenders. The bondholder receives federal tax credits in lieu of a portion of the traditional bond interest, resulting in a lower effective interest rate for the borrower.* The issuer remains responsible for repaying the principal on the bond. The tax credit rate is set daily by the U.S. Treasury Department. Under past allocations, the credit could be taken quarterly on a dollar-for-dollar basis to offset the tax liability of the bondholder. However, under the new CREBs allocation, the credit has been reduced to 70% of what it would have been otherwise. Other important changes are described in IRS Notice 2009-33. | |||||||||||||||||||||||||||||||||||||||||
USDA - Rural Energy for America Program (REAP) Loan Guarantees | U.S. Department of Agriculture | 08/21/18 | 03/27/23 | 2511 | The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to purchase, install, and construct renewable energy systems, make energy efficiency improvements to non-residential buildings and facilities, use renewable technologies that reduce energy consumption, and participate in energy audits and renewable energy development assistance. Renewable energy projects for the Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan and Grant Program include wind, solar, biomass and geothermal, and hydrogen derived from biomass or water using wind, solar, or geothermal energy sources. These grants are limited to 25% of a proposed project's cost, and a loan guarantee may not exceed $25 million. The combined amount of a grant and loan guarantee must be at least $5,000 (with the grant portion at least $1,500) and may not exceed 75% of the project’s cost. In general, a minimum of 20% of the funds available for these incentives will be dedicated to grants of $20,000 or less. For more information on grant, loan guarantees, loan financing, and opportunities for combinations thereof, visit the USDA website. Application due dates are published annually in the Notice of Funding Availability. Eligibility Grants and Guaranteed Loans are generally available to small businesses and agricultural producers and other entities as determined by USDA. To be eligible for REAP grants and guaranteed loans, applicants must demonstrate sufficient revenue to cover any operations and maintenance expense as well as any applicable debt service of the project for the duration of the guaranteed loan or grant. Rural small businesses must be located in rural areas, but agricultural producers may be located in non-rural areas. Eligible project costs include purchasing energy efficiency improvements or a renewable energy system, energy audits or assessments, permitting and licensing fees, and business plans and retrofitting. For new construction the replacement of older equipment with more efficient equipment may be eligible as a project cost only when a new facility is planned to be more efficient and similarly sized than the older facility. Working capital and land acquisition are only eligible for loan guarantees. For more information regarding applicant and project eligibility for loans and grants, visit the USDA REAP eligibility webpage, read the eligibility requirements in the most recent Solicitation of Applications for REAP funding in the Federal Registry, and/or contact your state rural energy coordinator. Regional rural energy coordinators provide loan and grant applications upon request. History
The Food, Conservation, and Energy Act of 2008 (H.R. 2419), enacted by Congress in May 2008, converted the federal Renewable Energy Systems and Energy Efficiency Improvements Program,* into the Rural Energy for America Program (REAP). Similar to its predecessor, the REAP promotes energy efficiency and renewable energy for agricultural producers and rural small businesses through the use of (1) grants and loan guarantees for energy efficiency improvements and renewable energy systems, and (2) grants for energy audits and renewable energy development assistance. Congress has allocated funding for the new program in the following amounts: $55 million for FY 2009, $60 million for FY 2010, $70 million for FY 2011, and $70 million for FY 2012. REAP is administered by the U.S. Department of Agriculture (USDA). In addition to these mandatory funding levels, up to $25 million in discretionary funding may be issued each year. The American Taxpayer Relief Act of 2012 (H.R. 8) extended discretionary funding for FY 2013. The 2014 Farm Bill reauthorized the USDA to offer these programs and removed the mandate to offer grants for feasibility studies. | |||||||||||||||||||||||||||||||||||||||||
U.S. Department of Energy - Loan Guarantee Program | U.S. Department of Energy | 09/08/22 | 03/27/23 | 3071 | Note: The Inflation Reduction Act (H.R. 5376) made several changes to this program. It appropriated approximately $11.7 billion in total for the Loan Programs Office (LPO) to support issuing new loans. This, in turn, increased the loan authority in LPO’s existing loan programs by approximately $100 billion. The Inflation Reduction Act also adds a new loan program, the Energy Infrastructure Reinvestment (EIR) Program (section 1706), to help retool, repower, repurpose, or replace energy infrastructure that has ceased operations or to improve the efficiency of infrastructure that is currently operating. Title 17 Program Section 1703 of Title 17 of the Energy Policy Act (EPAct) of 2005 created the Department of Energy's (DOE's) Loan Guarantee Program. The program was reauthorized and revised by the American Recovery and Reinvestment Act (ARRA) of 2009 by adding Section 1705 to EPAct. The 1705 Program was retired in September 2011, and Loan Guarantees are no longer available under that authority. DOE, however, still has authority to issue Loan Guarantees under the old Section 1703 Program. Under Section 1703, DOE is authorized to issue loan guarantees for projects with high technology risks that "avoid, reduce or sequester air pollutants or anthropogenic emissions of greenhouse gases; and employ new or significantly improved technologies as compared to commercial technologies in service in the United States at the time the guarantee is issued." Loan guarantees are intended to encourage early commercial use of new or significantly improved technologies in energy projects. The loan guarantee program generally does not support research and development projects. The Inflation Reduction Act added an additional $40 billion of loan authority to Section 1703 program. The legislation appropriated $3.6 billion in credit subsidy to support the cost of those loans and set aside a percentage of these amounts for administrative expenses to help carry out the program, including monitoring and originating new loans. This new loan authority is open to all currently eligible Title 17 Innovative Clean Energy technology categories, including fossil energy and nuclear energy. The Inflation Reduction Act appropriations also support the expanded activities authorized by the Bipartisan Infrastructure Law that required these new appropriations to go into effect. These expanded activities support projects involving critical minerals processing, manufacturing, and recycling, and removing the innovation requirement for State Energy Financing Institution-backed projects. Energy Infrastructure Reinvestment (EIR) Program (Section 1706) The Inflation Reduction Act also created a new program under Title 17, the Energy Infrastructure Reinvestment (EIR) Program. The new program targets projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations, or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or anthropogenic emissions of greenhouse gases. The Inflation Reduction Act appropriated $5 billion through September 30, 2026, to carry out EIR, with a total cap on loans of up to $250 billion. Advanced Technology Vehicles Manufacturing Loan Program LPO initially had $15.1 billion in loan authority to support the manufacture of eligible light-duty vehicles and qualifying components under the Advanced Technology Vehicles Manufacturing Loan Program (ATVM), authorized by the Energy Independence and Security Act of 2007. To date, the program has loaned $8 billion for projects that have supported the production of more than 4 million advanced technology vehicles. Read more about LPO's ATVM portfolio. The Inflation Reduction Act removed the $25 billion cap on the total amount of loans it can award and appropriated $3 billion to remain available through September 30, 2028 for the costs of direct loans under ATVM. In addition to amounts supported by currently appropriated credit subsidy, this $3 billion is estimated to provide for an additional ~$40 billion in loan authority for a total estimated available loan authority under ATVM of ~$55.1 billion. Tribal Energy Projects The Tribal Energy Loan Guarantee Program (TELGP) supports tribal investment in energy-related projects by providing direct loans or partial loan guarantees to federally recognized tribe, including Alaska Native village or regional or village corporations; or a Tribal Energy Development Organization (TEDO) that is wholly or substantially owned by a federally recognized tribe federally recognized Indian tribe or Alaska Native Corporation. Under this solicitation, The Inflation Reduction Act increased the aggregate amount of loans available at any time under the Tribal Energy Loan Guarantee Program (TELGP) from $2 billion to $20 billion. It also provided $75 million to remain available through September 30, 2028 to carry out TELGP under section 2602(c) of the Energy Policy Act of 1992. | |||||||||||||||||||||||||||||||||||||||||
Qualified Energy Conservation Bonds (QECBs) | U.S. Internal Revenue Service | 08/22/18 | 03/27/23 | 3098 | Note: The Tax Cuts and Jobs Act (HR 1) of 2017 repealed the use of tax credit bonds effective January 1, 2018. Issuers of QECBs that elected to receive direct payments from the Treasury issued on or before December 31, 2017, consistent with the Internal Revenue Code (Section 54D), will continue to receive direct payments. The summary presented below is for historical purposes.
The Energy Improvement and Extension Act of 2008, enacted in October 2008, authorized the issuance of Qualified Energy Conservation Bonds (QECBs) that may be used by state, local and tribal governments to finance certain types of energy projects. QECBs are qualified tax credit bonds, and in this respect are similar to new Clean Renewable Energy Bonds or CREBs. The October 2008 enabling legislation set a limit of $800 million on the volume of energy conservation tax credit bonds that may be issued by state and local governments. The American Recovery and Reinvestment Act of 2009, enacted in February 2009, expanded the allowable bond volume to $3.2 billion. In April 2009, the IRS issued Notice 2009-29 providing interim guidance on how the program will operate and how the bond volume will be allocated. Subsequently, H.R. 2847 enacted in March 2010 introduced an option allowing issuers of QECBs and New CREBs to recoup part of the interest they pay on a qualified bond through a direct subsidy from the Department of Treasury. Guidance from the IRS on this option was issued in April 2010 under Notice 2010-35. | |||||||||||||||||||||||||||||||||||||||||
Sonoma County Energy Independence Program (SCEIP) | 09/11/21 | 03/27/23 | 3334 | The Federal Housing Financing Agency issued a statement in July 2010 that was critical of PACE programs. Many PACE programs, including Sonoma County's, were temporarily suspended in response to the statement, waiting for further direction from the federal agency. At their July 13 Board meeting the Sonoma County Board of Supervisors elected to re-open this program. Sonoma County's Energy Independence Program (SCEIP) gives property owners the option of financing permanent energy efficiency, water conservation, renewable generation, wildfire safety, and seismic strengthening projects. PACE financing is repaid as an assessment on the property's regular tax bill. The program is similar to others in California authorized by AB 811 of 2008, but was the first county-wide program. Eligible equipment must be permanently attached to existing buildings, new construction does not qualify. The property tax assessments are attached to the property, not the property owner. If the property is sold, the assessment stays with the property. Financing is available for residential, commercial, industrial, agricultural, multifamily and certain non-profit projects. Benefits of financing with SCEIP include:
There over 100 pre-approved improvements eligible for SCEIP financing. All measures must meet and prove performance criteria and be permanently installed. Custom measures that are not pre-approved may be submitted for review. Search for your improvement here. The minimum amount of financing is $2,500. The financed amount becomes an assessment attached to the property, not the owner, and is paid back through the property tax system over a term of 10 or 20 years with a 5.99% interest rate. A key Sonoma County Energy Independence Program (SCEIP) enhancement effective July 1, 2011, is the requirement of achieving 10% energy efficiency improvement on the property prior to (or along with) the financing of renewable generation upgrade projects. This approach supports SCEIP’s regional goal to “reduce and produce,” plus strengthens the market position of the SCEIP assessment portfolio. Beginning March 1, 2011, the Sonoma County Energy Independence Program offers rebates for Energy Analyses performed by certified HERS II Raters. Submit your application, utility authorization, final invoice, rating certificate and recommendations report to SCEIP, and SCEIP will pay up to 75% of the total directly to the rater. Commercial and industrial properties must first have Pacific Gas and Electric perform an energy audit before participating in the program. Energy audits are not required for residential participants, but they are strongly recommended. The sum of all debt associated with the property cannot exceed 100% of the value of the property. Prospective participants should fully review the program website for additional requirements and restrictions. Beginning in 2015, Sonoma County property owners had expanded options for PACE financing options. Originally only SCEIP, the county program has partnered with CaliforniaFIRST and California HERO to make more PACE financing options available. CaliforniaFIRST operates under the auspices of the California Statewide Communities Development Authority (CSCDA), the CaliforniaFIRST residential PACE program launched in the summer of 2014 in 17 California counties and 167 cities. The HERO program was started up in December 2011 with a partnership between the Western Riverside Council of Governments and Renovate America, Inc. As of 2014, the program has been extended to 202 communities in California, helping to fund more than 18,836 residential projects totaling more than $344 million in financing. As of January 2016, this program has funded more than $73 million in projects. | ||||||||||||||||||||||||||||||||||||||||||
Local Option - Municipal Energy Districts | California Energy Commission | 10/29/20 | 03/27/23 | 3527 | Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing and a comprehensive list of all PACE programs across the country.
Property-Assessed Clean Energy (PACE) financing effectively allows property owners to borrow money to pay for energy improvements. The amount borrowed is typically repaid via a special assessment on the property over a period of years. California has authorized local governments to establish such programs, as described below. (Not all local governments in California offer PACE financing; contact your local government to find out if it has established a PACE financing program.)
Participating local governments may authorize the property owner to contract for the improvements or purchase equipment directly. Although local governments determine which energy projects are eligible for financing, the California Energy Commission (CEC) recommends photovoltaics (PV), geothermal heat pumps, fuel cells, high-efficiency HVAC systems, insulation, and high-efficiency windows.
California voters provided even more support for PACE programs by approving Ballot Proposition 39 in November 2012. The new law closes a tax loophole, which is expected to provide $1 billion in additional revenue every year. According to the law, half of the new funding collected in the first five years must be used for renewable energy and energy efficiency projects at schools and public facilities, workforce development, and providing assistance to local governments in establishing and implementing PACE programs.
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California Solar Initiative - Single-Family Affordable Solar Housing (SASH) Program | GRID Alternatives | $108.3 million | 06/02/22 | 12/31/21 | 3673 | Note: As of June 2022, this program is fully subscribed in the service territories of all three investor-owned utilities: Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric. The California Solar Initiative (CSI), enacted by SB 1 of 2006, provides financial incentives for installing solar technologies through a variety of smaller sub-programs. Of the $3.2 billion in total funding for the CSI, $216 million has been set aside for programs to help fund photovoltaic (PV) installations on low-income housing. Half of that $216 million is funding the Multi-Family Affordable Solar Housing (MASH) program, and the other half is funding the Single-Family Affordable Solar Housing (SASH) Program. The SASH program is being administered on behalf of the investor-owned utilities by GRID Alternatives. Income-eligible customers of Pacific Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E) may participate. In general, the household's total income must be 80% of the area median income (AMI) or less. Before a PV system is installed through the SASH program, all appropriate energy efficiency measures should be pursued. Contact GRID Alternatives for more information. | ||||||||||||||||||||||||||||||||||||||||
Sales and Use Tax Exclusion for Advanced Transportation and Alternative Energy Manufacturing Program | State Treasurer's Office | $100,000,000 per year | 03/06/23 | 12/31/25 | 4054 |
SB 71 of 2010 established a sales and use tax exclusion (STE) for eligible projects on property utilized for the design, manufacture, production or assembly of advanced transportation technologies or alternative source (including energy efficiency) products, components, or systems. The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) is administering the program. The STE Program is currently authorized through 2025. Eligibility Criteria: § 10033
Application Evaluation: § 10033
Program Restrictions
Prior Use
Fees
Those interested in participating in the SB 71 Program should contact the California Alternative Energy and Advanced Transportation Financing Authority. On October 16, 2020, CAEATFA issued a Notice of Emergency Regulations to make STE Program modifications that address the program’s oversubscription for the last two years, the unprecedented economic impact of the COVID-19 pandemic, incorporate lessons learned from program implementation, add further clarity and specificity in existing regulations provisions, and update and revise regulation and statutory cross-references. The emergency rulemaking package was submitted to the Office of Administrative Law (“OAL”) for review on October 26, 2020. The regulatory action was approved by OAL and became effective upon filing with the Secretary of State on November 4, 2020.
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City of San Francisco - GreenFinanceSF | 09/21/21 | 03/27/23 | 4091 | GreenFinanceSF is a Property Assessed Clean Energy (PACE) financing program for commercial properties. GreenFinance SF uses an "open-market" PACE model in which individual property owners identify their own project lenders and negotiate all the financing terms with them. The City collects loan repayments from the participant through a special tax lien on the property and disburses payment to the project lender. The special tax lean should provide greater security to the lender, who should be able to provide more favorable financing terms to the property owner. The property must be located in the City and County of San Francisco must be current in the payment of all obligations secured to the property including property taxes, assessments and tax liens within the past 3 years. The GreenFinance SF lien will be a senior lien, and the property owner must receive written consent from all lenders with existing liens on the property. The property owner must also have a professional energy and/or water audit conducted on the property, and the improvements being targeted by the financing must be identified as opportunities or recommendations by the auditor. If a renewable energy system is financed, the property owner must also implement energy efficiency measures resulting in a 10% improvement in building energy performance. See program website for additional rules and restrictions. | ||||||||||||||||||||||||||||||||||||||||||
USDA - High Energy Cost Grant Program | USDA Rural Utilities Service | $10 million (2021 solicitation) | 07/20/22 | 03/27/23 | 4359 |
NOTE: The most recent solicitation for this program closed July 6, 2021. Please check the program website for information on future solicitations.
This grant program is not limited to renewable energy or energy conservation and efficiency measures, but these measures are eligible for this grant program. | ||||||||||||||||||||||||||||||||||||||||
Marin Clean Energy - Feed-In Tariff | Marin Clean Energy | 15 MW of projects | 06/17/15 | 03/27/23 | 4556 | Assembly Bill 117, passed in 2002, allows communities in California to aggregate their load and to procure electricity from their own preferred sources. Under the authority of this law, California’s first community choice aggregator, Marin Clean Energy (MCE), was launched in May of 2010. The Marin Energy Authority comprises each city and town in Marin as well as the communities of Belvedere, Fairfax, Mill Valley, San Anselmo, San Rafael, Sausalito, Tiburon, and the County of Marin. The original legislation mandated that the customers of each supporting community would automatically be enrolled in Marin Clean Energy unless they chose not to participate by opting out.
As shown in the table below, systems with a Peak Energy delivery profile earn the highest per-MWh payments, and prices will decline as more systems sign contracts:
System owners obligated to sign a contract for a 20-year term. Individual projects are limited to 1 MW, and MEA will accept a total of 15 MW under this tariff unless MEA's Board of Directors votes to expand the program. Feed-in tariff participants are not eligible to participate in any net metering option for energy deliveries from the same facility.
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City of San Diego - Sustainable Building Expedited Permit Program | City of San Diego Development Services | 07/20/22 | 03/27/23 | 4790 | In 2002, the City of San Diego passed Resolution R-298001, which amended the Sustainable Building Policy to allow for expedited permitting for sustainable buildings. Sustainable buildings are defined in Policy Number 900-14, and the expedited permitting program is described in Policy Number 600-27. The Sustainable Building Policy is scheduled to be revised every three years. | |||||||||||||||||||||||||||||||||||||||||
Energy Efficiency Financing for Public Sector Projects | California Energy Commission | 05/27/21 | 03/27/23 | 5131 | Cities, counties, public care institutions, public hospitals, public schools and colleges, and special districts in California can apply for low-interest loans from the California Energy Commission for energy efficiency projects in their buildings and facilities. Residential and commercial projects and non-profit institutions are not eligible for these funds. Entities eligible for 0% loans include:
Entities eligible for 1% loans include:
There is no minimum loan amount, but the maximum loan amount per application is $3 million. The loan term cannot exceed the useful life of loan-funded equipment, and will be determined on a case-by-case basis based on the estimated annual energy cost savings from the projects. The exact loan term will be determined such that the energy savings will cover the loan payments. For a project to be considered, it must have proven energy savings and meet the eligibility requirements of the loan program. Examples of projects include:
Full details and application packets are available at the web site above. | |||||||||||||||||||||||||||||||||||||||||
Western Riverside Council of Governments - Home Energy Renovation Opportunity (HERO) Financing Program | 09/14/21 | 03/27/23 | 5181 | Western Riverside Council of Governments (WRCOG) is offering homeowners in WRCOG participating jurisdictions an opportunity to finance energy and water efficiency projects in their homes. The Home Energy Renovation Opportunity (HERO) Program is a Property Assessed Clean Energy (PACE) financing program. PACE programs allow homeowners to finance energy improvements, and to repay the financing through special assessments on their property taxes. In most cases the property tax assessment will stay with the property if it is sold, though the buyer's lender may impose restrictions on the transfer. A wide variety of energy and water efficiency products permanently affixed to the property can qualify for this program. Light bulbs, appliances, and other products not permanently affixed to the property are ineligible for this program. Only contractors registered with the program or a property owner who has signed a Self-Install Agreement may install the financed equipment. See the web site above for complete details. | ||||||||||||||||||||||||||||||||||||||||||
CaliforniaFIRST | Renewable Funding | 07/21/22 | 03/27/23 | 5309 |
The CaliforniaFIRST Program is a Property Assessed Clean Energy (PACE) financing program for residential properties. PACE allow property owners to finance the installation of energy and water improvements on their homes and to pay the amount back through their property taxes. CaliforniaFIRST is available to residential customers in participating counties. Check here to find a pace community near you. More information and a complete list of the currently approved energy and water efficiency technologies are available at the web site above. | |||||||||||||||||||||||||||||||||||||||||
Partial Sales and Use Tax Exemption for Agricultural Solar Power Facilities | California State Board of Equalization | 03/16/23 | 03/27/23 | 5351 | California provides a partial exemption of the state's sales and use tax for farm equipment and machinery. The exemption only applies to taxes levied by the State, and not sales and use taxes levied by local governments. Further, the exemption does not apply to the taxes imposed or administered pursuant to sections 6051.2 and 6201.2 of the Revenue and Taxation Code, the Bradley-Burns Uniform Local Sales and Use Tax Law, the Transactions and Use Tax Law, or section 35 of article XIII of the California Constitution. The California State Board of Equalization issued a Special Notice in November 2012, clarifying that photovoltaic (PV) systems that are used to provide electricity to farm equipment and machinery may qualify for the partial exemption. For any farm equipment or machinery to qualify for the partial exemption, it must be used primarily in producing and harvesting agricultural products. "Primarily" means 50% or more of the time. In the case of PV, according to the Special Notice, 50% or more of the electricity produced by the system must be used to provide power to farm equipment and machinery. The system does not need to be directly connected to the equipment to qualify. The system can be connected to the local electrical grid and used to offset the farm's electrical use through a net metering arrangement with the local utility. Applicants will need to demonstrate, however, that the farm equipment annually consumes at least half of the amount of electricity annually produced by the PV system. Leased equipment also qualifies for the partial exemption. For more information, including a sample Partial Exemption Certificate, can be found on the web site above.
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Renewable Market Adjusting Tariff (ReMAT) | 03/16/18 | 03/27/23 | 5665 | Note: In a December 2017 letter to the IOUs the Executive Director of the CPUC declared that the U.S. District Court had declared that the Re-MAT program violated the Supremacy Clause of the U.S. Constitution by placing numerical limits on utility obligations to purchase power from QFs, and establishing a purchase price different than the utility's avoided cost. The letter instructed the IOUs to not accept or approve new Re-MAT contracts pending further CPUC action. All investor-owned utilities and publicly-owned utilities with 75,000 or more customers must make a standard Renewable Market Adjusting Tariff (ReMAT) available to their customers. As the ReMAT is meant to help the utilities meet California's renewable portfolio standard (RPS), all green attributes associated with the energy, including renewable energy credits (RECs), transfer to the utility with the sale. Any customer-generator who sells power to the utility under this tariff may not participate in other state incentive programs. The tariffs will be available until the combined statewide cumulative capacity of eligible generation installed equals 750 megawatts (MW) for the general ReMAT program, and 250 MW for the bioenergy ReMAT program. Each utility will be responsible for a portion of those cumulative totals based on their proportionate sales. The CPUC has regulatory authority over the investor-owned utilities, but not publicly-owned utilities. Therefore, the rules adopted by the CPUC do not apply to the publicly-owned utilities. Instead, the governing board of each publicly-owned utility is wholly responsible for developing their tariffs within the parameters established by the legislature in CA Public Utilities Code § 399.32 (formerly CA Public Utilities Code § 387.6). The collective share of the 750 MW program capacity established by the legislature for which the investor-owned utilities are responsible is 493.6 MW. The remaining 256.4 MW is to be divided between the publicly-owned utilities. Investor-owned utilities are solely responsible for the 250 MW bioenergy program. Investor-Owned Utilities (General ReMAT program) The California ReMAT allows eligible customer-generators to enter into 10-, 15- or 20-year standard contracts with their utilities to sell the electricity produced by small renewable energy systems (up to 3 megawatts (MW)). The CPUC has separated the technologies eligible to participate in the feed-in tariff into three project type categories: Baseload (bioenergy and geothermal), As-Available Peaking (solar), and As-Available Non-Peaking (wind and hydro). The ReMAT starting price is based on the weighted average of the three investor-owned utilities highest executed contract resulting from the Renewable Auction Mechanism (RAM) auction held in November 2011. Based on the results of that auction the starting price was $89.23 per megawatt-hour (MWh). As of July 2016, the current price for Baseload and As-Available Non-Peaking resources remains $89.23 per MWh; the current price for As-Available Peaking resources is $61.23 per MWh. The CPUC built in price adjustment mechanisms to allow the program to adapt to changing market conditions. Interested generators must start by submitting a program participation request with the utility. The utility will establish a queue on a first-come first-served basis for each product type and will extend a ReMAT price offer to the applicants. The applicant can either accept or reject the contract. The price adjustments are only triggered if at least five projects with different developers for a certain product type apply. If no projects accept the Re-MAT, or less than 50% of the initial starting capacity for that project type accept the Re-MAT after its first two months, then the price will be escalated by $4 per MWh for the third and fourth months. The price will continue to escalate in subsequent two-month blocks until the subscription capacity is equal to 50% or more of the initial starting capacity for that project type. Similarly, if the program demonstrates excessive interest, the Re-MAT will be adjusted downward every two months. Investor-Owned Utilities (Bioenergy ReMAT program) SB 1122 of 2012 requires the investor-owned utilities to operate a separate ReMAT program for a cumulative total of 250 MW of bioenergy projects, separate from the wider 750 MW program. The legislation subdivided the 250 MW limit across different bioenergy sources:
The CPUC, in consultation with the California Energy Commission (CEC), the State Air Resources Board, the Department of Forestry and Fire Protection, the Department of Food and Agriculture, and the Department of Resources Recycling and Recovery, may reallocate the 250 MW requirement among the categories if they determine the allocations referenced above are not appropriate. Publicly-Owned Utilities All publicly-owned utilities with 75,000 or more customers are required to develop feed-in tariffs by July 1, 2013. In determining the rate to pay under the tariffs, publicly-owned utilities must consider:
CA Public Utilities Code § 399.32 provides more guidance for publicly-owned utilities in developing their tariffs, including conditions in which the utility may limit the program. Customers of publicly-owned utilities with 75,000 or more customers should contact their utility for more information. Customers of one of the investor-owned utilities can contact the appropriate program administrator for more information: | ||||||||||||||||||||||||||||||||||||||||||
LADWP - Feed-in Tariff (FiT) Program | 100 MW of Projects | 02/02/17 | 03/27/23 | 5685 | Note: LADWP accepted applications for the fifth allocation of the 100 MW FiT Set Pricing Program in March 2015. This program is the first component of a 150 megawatt (MW) FiT Program, and is designed to support 100 MW. The full 100 MW of contracts will be offered in five allocations occurring every six months. A plan for the additional 50 MW program is still in development. See the website above for more information. LADWP is providing a Feed-in Tariff (FiT) program to support the development of solar photovoltaic (PV) in its territory. Project must be registered as RPS-compliant with the California Energy Commission to be participate. The full 100 MW of contracts awarded through this program will be offered in five allocations occurring every six months. For each allocation, 4 MW of capacity will be reserved for small projects between 30 kW and 150 kW. If the small projects reach their reserved capacity limit before the total reserved capacity is met for a Tier, the remaining small projects will qualify under the total reserved capacity allocation until that category is exhausted. During the first five business days of each application period, all submitted applications will be prioritized on the FiT Reservation List by lottery. Applications received after the first five business days will prioritized in the order they are received. The amount LADWP will pay for each kilowatt-hour (kWh) produced will be a product of the Base Price of Energy (BPE) multiplied by the appropriate Time-of-Delivery (TOD) Multiplier. The BPE is scheduled to decline as each 20 MW allocation is subscribed. The TOD multiplier varies by time of day and time of year with the highest multiplier being available between 1:00 PM and 5:00 PM during June through September. The full schedule for BPE prices and TOD multipliers can be seen in the tables below. Base Price of Energy
Time of Delivery Multiplier
Program participants must pay application fees, interconnection study fees, development security deposits, and interconnection fees. These fees and additional program requirements can be found at the web site above.
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Fannie Mae Green Financing – Loan Program | 05/08/20 | 03/27/23 | 5780 | NOTE: Only multifamily properties are eligible for the program. Single family homeowners are not eligible for this program. The Fannie Mae Green Financing Business provides mortgage financing to apartment buildings and cooperatives (with 5 or more units) to finance energy and water efficiency property improvements. Its green financing programs include Green Rewards, and preferential pricing for loans secured by a property with an eligible Green Building Certification. All Fannie Mae green loans are securitized as Green Mortgage Backed Securities (Green MBS). To learn more about these programs, multifamily property owners should coordinate with a Fannie Mae DUS Lender: https://multifamily.fanniemae.com/about-multifamily/our-partners/dus-lenders Green Rewards, launched in 2015, provides preferential pricing and up to an additional 5% of loan proceeds by including up to 75% of projected owner energy and water savings and 25% of projected tenant savings in the loan underwriting. Conventional and affordable multifamily properties, as well as cooperatives, seniors, military, and student housing properties are eligible for this program. To qualify for a Green Rewards loan the property owner must commit to making property improvements that are projected to reduce the whole property’s annual energy and water consumption by at least 30%, which a minimum of 15% must be attributable to savings in energy consumption. Properties may be located anywhere in US, and the selected property upgrades must be completed within 12 months of loan closing. Fannie Mae also provides preferential pricing for an acquisition or refinance loan on a conventional or affordable property that has a current, eligible Green Building Certification per Fannie Mae Form 4250. Please visit the Fannie Mae Green Financing website for more information and detailed program requirements. | ||||||||||||||||||||||||||||||||||||||||||
Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment | California Department of Tax and Fee Administration | 03/16/23 | 07/01/30 | 22048 | AB 1817 of 2018 created an exemption from the sales and use tax for "qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, or storage and distribution, of electric power." The exemption also applies to contractors who purchase the equipment in the service of a contract with a qualified person. "Qualified person" is defined in the statutes. The exemption does not apply to the generation or production of electricity from nuclear energy, large hydro, or fossil fuels, except when used in cogeneration. However, the exemption does apply to the storage and distribution of electric power from any source. The exemption also applies to "special purpose buildings and foundations used as an integral part of the generation or production or storage and distribution of electric power." |