Yes, SGIP rebates can be combined with federal tax credits. Here’s how these incentives work together:
- SGIP Rebates:
- The Self-Generation Incentive Program (SGIP) in California offers rebates for energy storage systems, such as battery installations. Rebates range from $150 to $1,000 per kilowatt-hour (kWh) of storage, depending on the specific program tier and eligibility criteria.
- SGIP is particularly beneficial for those seeking energy resilience and independence, especially in areas with high wildfire risk or frequent public safety power shutoffs.
- Federal Tax Credits:
- The federal government provides a 30% Investment Tax Credit (ITC) for solar and energy storage systems, which includes batteries. This credit reduces the total cost of the system and can be claimed in the year following installation.
- The Inflation Reduction Act expanded eligibility for this tax credit to include standalone batteries, regardless of whether they are charged by solar panels.
- Combining Incentives:
- By combining SGIP rebates with the federal ITC, homeowners can significantly reduce the upfront cost of solar and battery storage systems. For example, if a battery installation costs $16,000, an SGIP rebate could lower the cost, and the ITC could provide an additional 30% tax credit on the remaining cost.
- This combination of incentives can make energy storage systems more affordable and provides benefits by reducing electricity bills and enhancing energy resilience.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-sgip-rebates-be-combined-with-federal-tax-credits/
