So you want to go solar, but you can't. Something's holding you back.

And it's not just that deep-seated hatred for the polar ice caps. Going solar can be expensive. Fortunately, recent programs and initiatives have dramatically reduced the cost of installing solar panels at home.

So if you've been thinking of installing solar panels, now might be the right time to do it. It's smart, clean, and, thanks to new changes, affordable. So do good and do well, and stick it to your local utility at the same time.

Check out the following information related to currently available Federal, State, and Local tax and incentive schemes available to Californians and see if going solar is right for you.

FEDERAL:

1) Installation Tax Credit 

As long as the solar equipment is "ready and available for use" by 2016, the Federal tax credit is an uncapped 30% of the cost of purchase and installation. The credit for solar-electric systems placed in service before January 1, 2009 is capped at $2,000.

In order to receive the credit, you'll also need a Manufacturer Certification Statement which verifies that the product qualifies for the tax credit. You won't need to submit the statement, but you will need to keep it just in case you're lucky enough to be audited!

You can click here to see a FULL Summary of the Federal tax credit for solar and other residential home improvements.

Also click the link in the box above, or click here to see the tax form you'll need to complete for the credits.

CALIFORNIA STATE:

1) California Solar Initiative

California's biggest incentive program for solar renovation is the California Solar Initiative. The CSI offers self-generation rebates for residential solar production. The rebates vary according to system size, customer class, and performance and installation factors.

(TRANSLATION: You get paid for solar energy production.)

There are two incentive paths available to solar consumers:

Available rebates automatically decline in "steps" based on the volume of solar megawatts confirmed or installed in your area.  So earlier installers get paid more for production.

It's important to check on the current rebate level in your area before making a decision.

Click here to see the currently applicable rebate rate in your area.

If you're having trouble, follow these steps     

1. Find your Administrator (if it is SDG&E/Sempra the administrator is CCSE)

2. Cross-check the column "Current Step" with the row "Residential" for your Administrator

3. Check the pay rate for that step in the table below

And click here to calculate your CSI solar rebate.

2) CA Property Tax Exclusion

The other major incentive is a Property Tax Exclusion. Section 73 of the California Revenue and Taxation Code allows a property tax exclusion for certain types of solar energy systems installed between January 1, 1999, and December 31, 2016.

Fully qualifying active solar energy systems are defined as those that "are thermally isolated from living space or any other area where the energy is used, to provide for the collection, storage, or distribution of solar energy." These include solar space conditioning systems, solar water heating systems, active solar energy systems, solar process heating systems, photovoltaic (PV) systems, and solar thermal electric systems, and solar mechanical energy. Solar pool heating systems and solar hot-tub-heating systems are not eligible.

Dual use equipment included under the exclusion includes storage devices, power conditioning equipment, transfer equipment, and parts. Pipes and ducts that are used to carry both solar energy and energy derived from other sources qualify for the exemption only to the extent of 75% of their full cash value. Likewise, dual-use equipment for solar-electric systems qualifies for the exclusion only to the extent of 75% of its value.

System owners should contact the applicable county assessor's office for further information.

Click here for a listing of County Assessor offices in California.

And here for a December 2008 letter to the assessor that further clarifies the terms of the exclusion.

SAN DIEGO COUNTY

1) Free Building Permits
Since 2001, residential photovoltaic systems have been eligible for free local building permits.

2) AB 811--San Diego CleanGeneration

In late 2008 Mayor Jerry Sanders announced plans for a new residential solar financing program, intended to be fully functional by Fall 2009

The program, which the Mayor announced during his State of The City address is called "San Diego CleanGeneration" and stems from AB 811, which was recently signed by the Governor.

Property owners within the city who participate will be provided upfront financing to install solar or other renewable energy-generating devices. Participants agree to be part of an assessment district and will pay for the cost of the improvements, plus interest, over a 20-year period on their property tax bill. The obligation to pay the assessment will transfer to the new owner if the property is sold during the 20-year repayment period.

The San Diego Clean Generation program removes two of the primary barriers to installation of solar panels: the upfront cost - typically about $25,000 - as well as the concern that the customer will move before the investment pays off through utility bill savings. The expected cost to participants of approximately $150 per month will be substantially offset by utility bill savings.

In addition, all state and federal tax credits and rebates for solar installations will apply.

MORE INCENTIVES:

For a FULL LIST of all local, regional and statewide residential efficiency incentives click HERE.

VENDORS:

Click here or here search lists of local businesses that do solar-related construction.

(Courtesy of the California Center for Sustainable Energy and www.findsolar.com).

As with any construction, make sure to get multiple estimates and verify contractor credentials through the Contractors State Licensing Board, the Better Business Bureau, and internet research.