California is one of the leading states in producing energy from solar panels systems.  One of the main reasons California is the leader is because California averages 5.5 hours of Sun a day, year round.  Since Governor Schwarzenegger has been in office, he has made energy efficiency and protecting the environment his first priority.  While in office, he has passed 7 bills relating to the conservation of California energy and resources. “California is a world leader in improving technologies and promoting conservation while protecting our environment,” said Governor Schwarzenegger. “That is why I am pleased to sign this legislation that will protect our precious resources and continue to keep California at the forefront of energy and water efficiency.”  In 2008 Governor Schwarzenegger signed legislation to complete his Million Solar Roofs Plan which gives $2.9 billion to homeowners and building owners who install solar panel electric systems.  By signing this legislation, he hopes to have one million solar roofs in California by the year 2018.

• Download IRS Form 5695
• California PowerClerk Application
• California Rebates Information
• The California Solar Initiative - CSI
• California Solar Incentives FAQ

There are requirements to be able to receive the tax rebates. The requirements for a solar water heating system are at least half of the energy generated by the “qualifying property” must come from the Sun.  The homeowners may only claim spending on the solar water heating system property and not the entire water heating system of the household.  The system must be certified by the Solar Rating and Certification Corporation (SRCC).  All ENERGY STAR solar water heaters qualify for the tax credit.

The requirements for a solar panel electrical system, also known as a photovoltaic system, are the following: the system must provide electricity for the residence and must meet applicable fire and electrical code requirements.  The system also must be placed in service before December 31, 2016.


Ask us how you can receive back up to 40% of your Solar Panel Installation Costs via Federal and State incentives.