Cash Back for Solar on Your Business

Solar energy is one of our state's most abundant - and least utilized
renewable resources. The California Solar Initiative offers cash incentives on
solar systems - currently, $2.50 a watt. California Solar Initiative Incentives,
combined with federal tax incentives, can cover up to 50 percent of the total
cost of a solar system.

Solar Panels are Reliable

Today's solar systems are reliable, attractive and affordable. Systems
installed under California Solar Initiative include contractor warranties that
give you peace of mind. Modern low-profile solar arrays complement most
roofs, and installation is simple. With minimal maintenance, you can expect
at least 20 years of energy production from a free and renewable energy
source. Today, hundreds of Californians are powering their homes and
businesses with solar electric systems.

Savings on Your Energy Bill

A solar electric system, combined with energy efficiency improvements, can
substantially reduce your electric bill. Right now, your system can qualify for
$2.50 a watt-30% of a typical installation. Click here to learn how solar and
energy efficiency can save you money.

Federal Tax Credits

In addition to rebates available through the California Solar Initiative, you can
save by taking up to $2,00 in Federal income tax deductions - up to 30% of
net installed cost by installing solar electric power. You can also deduct for
purchasing a range of energy-efficient products and systems.

Solar Thermal Incentives

The California Public Utilities Commission (CPUC) plans to offer $100 million
in incentives over the next ten years for solar thermal technologies under the
California Solar Initiative. State law (Senate Bill 1) limits California Solar
Initiative incentives to electric-displacing technologies, such as absorption
cooling. Currently, CSI program administrators are working with the CPUC to
develop the underlying methodologies and future program design.

The San Diego Regional Energy Office (SDREO) will run a pilot incentive
program for solar thermal technologies in the San Diego Gas & Electric.

Heating & Air Tech
Solar and energy Efficiency Can Save You Money

When the sun is shining, your solar system generates electricity, which
means you will purchase less electricity from the local utility. Over the course
of one year, your utility will track the amount of electricity your system has
fed into the grid and use this credit to offset the costs of power purchased
from the utility when your system does not generate electricity, i.e. cloudy
days or at night. At the end of the year, the utility will "true up" how much
electricity it provided to you, and compare it to how much your system fed
back to the utility grid. If you produced more than you consumed, your bill
will be close to zero. If you used more electricity than you generated, you will
only pay the difference.

The California Solar Initiative currently contributes $2.50 /watt for solar
systems. That can add up to 30% of a typical array!

In 2007, systems that are smaller than 100kw will be paid incentives up
front, but based on their expected performance. Expected performance will
be calculated based on equipment ratings and installation factors, such as
geographic location, tilt, and shading.

The rebate levels will also decrease an average of 7% per year between 2007
and 2017. The purpose is to set incentive levels high enough to motivate
solar investments, yet not so high that ratepayers are subsidizing projects
that would be built with lower incentives. Developers and customers benefit
by knowing how much the rebate will be as demand for the solar rebates
increase.

See our page on Performance Based Incentives for additional information on
the new incentives.

Wait - did you know making simple energy-efficient-first-can dramatically improvements
can further lower the costs?

Making your building energy efficient-first-can dramatically improve the
returns on a new solar system. California also provides rebates for a number
of energy efficiency upgrades via your utility. Did you know that products
with the ENERGY STAR® label use 25-75% less energy than their common
counterparts? Visit the Flex Your Power website to learn how to receive
rebates for these purchases.

To get the most rebates possible, apply now.

Heating & Air Tech

Federal Tax Credits

In addition to rebates available through the California Solar Initiative, you can
save on your new solar electric power system by taking an income tax
deduction of up to 30% of the eligible equipment cost (with a cap of $2,000
for residential systems). You can deduct even more for purchasing a range of
energy efficient products and systems.

The following information is provided courtesy of Andy Black, President of
OnGrid Solar, at www.ongrid.net © 2006, all rights reserved).
Please Note: www.GoSolarCalifornia.ca.gov does not endorse the sites behind
these links. We offer them for your additional research. Following these links
will open a new browser window.

Note: The following information regarding taxes, tax credits and depreciation
is meant to make the reader aware of these benefits, risks and potential
expenses, and help avoid claims by aggressive salespeople. It is not tax
advice, and the author is not a qualified tax professional. Please seek
professional advice from a qualified tax advisor to check the applicability and
eligibility before claiming any tax benefits or exemptions.

Tax incentives include tax credits and depreciation. The Federal Investment
Tax Credit for Residential is 30 percent of net system cost, capped at $2,000.
It is a one-time credit, but may be carried forward (and possibly back) If not
completely useable in the system installation tax year. It only applies for
systems that are installed in 2006 and 2007. Congress is likely to extend it
past it's current 2007 expiration date. Check back for updates. Also, the IRS
hasn't produced the form required for claiming this credit for individual fliers.

The Federal Investment Tax Credit for Commercial and Business
owned systems is 30 percent of net system cost with no cap. This applies for
systems that are installed in 2006 and 2007., if not extended, the
tax credit will revert to the permanent level of 10 percent. The IRS current
federal form 3468 is available at www.irs.gov/formspubs. In the past, this
credit could be carried forward fifteen or back three years. It's not clear if this
has changed.

Business owned systems may also be eligible for MACRS 5-year
Accelerated Depreciation using IRS federal form 4562. For more info on
commercial tax benefits and for updates on the CSI & IRS rules and forms,
see the online version of the article at:
www.ongrid.net/papers/paybackonsolarserg.pdf

A source for information on all state and federal incentive programs around
the country is available at the DSIRE project: www.dslreusa.org. In addition,
the Solar Energy Industries Association (www.sela.org) has put together a
"Guide to Federal Tax Incentives for Solar Energy," available for free at
www.sela.org/manualdownload.php.

Residential customers in higher income tax brackets see comparatively
more value because residential electricity expenses are paid with after-tax
dollars they aren't tax deductible.

Tax treatment of the incentives depends on the type of customer, and
possibly the type of incentive. For additional information on tax treatment,
see the online version of the article at:
ww.ongrid.net/papers/paybackonsolarserg.pdf. Of course, municipal and
non-profit entities do not have to worry about these tax issues, as they are
generally tax-exempt. More detailed information on solar finance and tax
considerations is available from the Northern California Solar Energy
Association's Solar Energy Resoursce Guide, at http://norcalsolar.org. Also see
the Tax Incentives Assistance Project (www.energytaxincentives.org/tiap-
solar-energy-systems.html) for more information on solar and energy
efficiency tax credits.