Commercial and Home Builder Solar Incentives in California: 2023


Commercial and Home Builder Solar Incentives in California: 2023

Solar energy is heading the way in the huge shift toward renewable energy consumption, especially in California, where the transition towards renewable energy is in full swing. Businesses and home builders have a huge role to play in determining the success of solar energy. Solar is the most accessible, cost-effective, and reliable source of renewable energy, and in order to reach US energy goals, businesses need to start investing in solar, and home builders have to seize the opportunity to incorporate solar into their construction businesses. 

The US is encouraging the widespread adoption of solar energy by providing incentives. These include government incentives, state-wide rebates and incentives, and utility-provided programs such as net metering. In this blog, we’ll discuss which incentives are available to businesses and home builders in California

Why should businesses go solar?

The opportunity to save on electricity bills is a huge motivator for businesses interested in investing in solar energy. Solar energy can offset up to 100% of electricity overhead costs for businesses and freeze their electricity bills for over 25 years. As well as reducing operating costs, businesses that choose to go solar can nurture a green brand image and help reduce the impact of climate change by decreasing their carbon emissions. Incentives allow businesses to improve their ROI and shorten their payback period, dramatically increasing long-term solar savings. 

Commercial Solar Incentives in California

Federal Solar Tax Credit (ITC)

This incentive allows businesses to recover 30% of their total installation costs. Available nationwide, businesses of all sizes can save significantly on their investment. This solar incentive will be open until 2032, when the credit will drop back down to 26% and eventually may be discontinued. 

NEM 3.0 – Net Metering

Businesses can save even more on their electricity bills with California’s net metering program, known as NEM 3.0. When solar panels produce excess energy, the energy can be sent back into the utility grid for a credit on monthly electricity bills. This new iteration of California’s net metering policy is referred to as net billing, and the amount you can earn back on your bills depends on time-of-use rates, which fluctuate according to the prices provided by an avoided cost calculator (ACC).

SGIP rebate on solar energy storage

Solar batteries is a valuable addition to any solar installation, ensuring complete energy independence and helping business owners avoid more of their overhead costs when their solar panels aren’t working instead of drawing from the grid. Now is the best time to invest in solar energy storage in California because businesses can receive up to $1000 per 1000 watts of stored solar energy with the SGIP rebate. This incentive will reduce as more businesses sign up, so apply as soon as possible to take full advantage. 

Why should home builders invest in solar?

Solar-ready homes are becoming increasingly popular as homeowners actively seek out properties with the means to produce renewable energy from day one. The construction industry has much to gain from partnering with the solar industry. After all, to reach 100% renewable energy consumption in the US, someone needs to build solar-powered homes, which is where home builders come in. However, apart from improved cash flow and a greater consumer base, home builders can also benefit from home builder incentives in California, helping make each solar-ready home project more profitable. 

Home Builder Incentives in California

Energy Efficient New Homes Tax Credit

This incentive offers home builders up to $2000 worth of tax credit on their newly constructed solar homes. By installing solar energy systems into your new home builds you can meet the required energy efficiency and energy saving standards and become eligible for this incentive. 

The BUILD program

Projects located in one of these four gas service territories: 

Southern California Gas, Pacific Gas & Electric, San Diego Gas & Electric,

and Southwest Gas Corporation can apply for incentives and reduce their construction costs under the BUILD(Building Initiative for Low-Emissions Development) Program. 

The BUILD program aims to encourage the construction of renewable-powered homes in California. Newly constructed single and multi-family homes are eligible for this incentive and can get added benefits for installing energy storage. The BUILD program is a decarbonization program that aims to incentivize the reduction of greenhouse gas emissions created by residential buildings in the US. By taking full advantage of this incentive, home builders in California can save a great deal on solar-ready home construction costs. 

California Electric Homes Program- CalEHP

This solar incentive promises to lower installation costs for home builders. The incentive is still under review but will be available this year. Interested home builders can subscribe with their email to receive updates on the incentive’s webpage, located at  

Get Top-Quality Solar Installations with IE Construction

Searching for the best California-based solar installation service for your commercial solar or home-build project? IE Construction provides end-to-end solar installation solutions for businesses and home builders. We strive to make solar installation simple and cost-effective so that you can switch without delay to your schedule. IE Construction simplifies financing by providing options that meet your budget and needs with low-interest, low-payment solar loans. 

If you’d like to get first-rate solar advice from energy advisors, don’t hesitate to ask for a no-obligation solar quote. Contact us today to learn more about how we can help you acquire the solar solutions you need in California. 

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