CESC- Community Energy Services Corporation - Solar Electric Costs and Financing

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Solar Electric Costs and Financing - Commercial

Solar electric systems cost on average $7.50 to $9.50 per AC watt installed, which includes system design, materials, and labor. Market research of both solar technology and installers can help you to compare individual component prices and project bids and empower you as a consumer.

Rebates and Incentives. Once your project has been installed, you can enjoy savings with state and federal incentives.

California Solar Initiative (CSI). Grid-connected systems smaller than 30kW may qualify for a one-time incentive from PG&E as part of the CSI's Expected Performance Based Buy Down (EPBB) program. For projects larger than 30kW, CSI's Performance Based Incentive (PBI) pays out an incentive over a period of 5 years based on a $ per actual kWh produced. The most up-to-date information on rebate amounts within PG&E territory can be found here.

Federal Investment Tax Credit (ITC). Effective January 1, 2009, you may qualify for an ITC of up to 30% of the post-CSI system cost.

Financing Strategies. You may be able to finance your solar electric system with a monthly payment that is less than your current monthly electric bill. The most traditional option is a small business loan. Solar companies have also developed financing strategies that include solar leases and power purchase agreements. In deciding how to pay for your solar system, consider contract obligations, whether interest payments are tax-deductible, how incentives are packaged, and the treatment of your Renewable Energy Credits (which are certificates for the clean energy produced by your solar system and which may have monetary value).