There are a number of tax credit programs at both the Federal and State levels that can help businesses adopt solar including businesses in the Central Valley.
ITC stands for Investment Tax Credit. A tax credit is not a tax deduction. With a tax deduction, you deduct some amount off your gross income to determine your taxable base income. A tax credit is a better option for businesses because it can be used to pay off your owed federal taxes (sort of like receiving an IRS gift card). Read more about the 30% Federal ITC.
California SCE Rates – If you’re a California-based business or a non-profit, your utility rate can be a crucial factor in your overall annual savings from installing solar. Thanks to a 2014 settlement between solar advocates and the Southern California Edison (SCE) utility, commercial businesses and non-profits that go solar in SCE territory will once again be able to select the financially advantageous “Option R” Time of Use (TOU) rate that has been limited. Read more about SCE rates.
Solar Renewable Energy Credits – SRECs are a tradable commodity that you obtain from owning a solar panel system or other source of renewable energy such as wind. Because of a common state requirement known as the Renewable Portfolio Standard (RPS), utilities in 30 different states must generate a certain percentage of their energy from renewable sources (typically at least 20 percent). Solar homeowners and commercial businesses in RPS states can earn one SREC for every 1000 kilowatt hours (kWh) generated by their solar PV system. Read more about SRECs.