Income restrictions do exist for certain state solar rebate programs, though they vary by program and location.
California State Solar Rebates with Income Restrictions
DAC-SASH Program (Disadvantaged Communities – Single-family Affordable Solar Housing)
- This California program offers solar incentives at $3 per watt for solar panel systems sized between 1 and 5 kW.
- To qualify, applicants must meet income requirements and own a single-family home in a disadvantaged community.
- Income limits as of May 31, 2025, are $37,650 for a one-person household and $51,100 for a two-person household.
- The program targets customers of PG&E, Southern California Edison, or San Diego Gas & Electric.
- Applicants must also have household income at or below 80% of the area median income, verified based on the previous year’s tax return.
- Eligible homes typically qualify as “affordable housing” under California Public Utilities Code, which can include resale restrictions or other equity-sharing agreements.
- This program can allow low-income homeowners in disadvantaged areas to install solar at very low or no cost.
Battery Storage Incentives with Income Considerations
- In California, the Self-Generation Incentive Program (SGIP) provides increased rebates for low-income customers on battery storage installations.
- Rebates are higher for low-income customers, such as $850/kWh versus $150/kWh for small residential storage alone.
Federal Solar Tax Credit (ITC)
- The federal Residential Clean Energy Credit (formerly the Investment Tax Credit, ITC) currently provides a 30% credit on solar installation costs through 2032.
- There is no income limit for claiming this federal tax credit; eligibility depends on system ownership and installation criteria instead.
- The credit can be claimed on your federal tax return with Form 5695 and can be carried over if unused fully in a tax year.
- This credit is available regardless of income, making it broadly accessible to homeowners who meet other criteria.
Summary
| Program | Income Restrictions | Notes |
|---|---|---|
| California DAC-SASH | Yes, income ≤ $37,650 (1-person), $51,100 (2-person) or ≤80% of area median income | Must own home in disadvantaged community, utility customer requirement |
| SGIP Battery Rebates | Yes, enhanced rebates for low-income customers | Incentives vary by utility and risk area |
| Federal Solar Tax Credit | No income restrictions | Applies to owners of new solar systems, claimed via tax credit |
In conclusion, certain state solar rebate programs, especially targeted low-income or disadvantaged community programs like California’s DAC-SASH, do impose income limits, while federal solar tax credits have no income restrictions and are accessible to all qualifying homeowners regardless of income.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-income-restrictions-for-state-solar-rebates/
