Home Energy Systems, Inc.

State Rebates & Federal Tax Credits

The California Solar Initiative offers cash incentives on solar systems - currently, $2.50 a watt for existing homes. California Solar Initiative incentives, combined with federal tax incentives, can cover up to 50 percent of the total cost of a solar system.

Taxes and rebates will vary slightly for new constructions, but currently there is $2.50 per watt available, scheduled to decrease as program goals are met. The minimum system size eligible for an incentive is 1 kW. While systems sizes up to 5 MW are eligible to participate in the program, the maximum incentive provided under the CSI program is based on a system size no greater than 1 MW.

How solar works

There are 2 main components of a grid-tied photovoltaic system (PV). Solar panels convert direct sunlight into Direct Current (DC) electricity that can then be converted to Alternating Current (AC) by the inverter. This electricty is the same quality or better electricity as you would get from your regular outlets in your home. This inverter is then wired into your main breaker panel on your home/business and the electricty is backfed through your electrical meter. When you produce more than you consume, at any one time, you can watch your meter spin backwards! This is called "Net Metering"

Net Metering

Net Energy Metering (NEM) is a program offered by most local electricity providers to customers installing photovoltaic, solar electric or wind generating systems. Through interconnection with the power grid, your electricty company is able to measure the "net" difference between the energy generated by the customer and the energy purchased from your electricity company. The NEM program is a 12-month program that automatically renews at the end of each 12-month cycle. Under this program, residential customers need only pay the electric portion of their utility bill once every twelve months. Contact us or your local utility company for more information.