Self-Generation Incentive Program

The Self-Generation Incentive Program offers buy-down payments of $4.50 per watt or up to 50% of the total installed project cost. Payments are offered on a first-come, first-serve basis for commercially sized systems only (30 kW to 1 MW) and include PV, small wind, and renewable powered fuel cells. These facilities must be certified to operate in parallel with the electric system grid (not back-up generation) and meet other criteria established by the California Public Utilities Commission.

Integrated Energy Projects can yield a return on investment of more than 25% with a simple payback of under 5 years. When financed at today’s low rates and by taking advantage of the substantial up-front tax incentives, a positive cash flow can be achieved in the first year.

Sample Economic Analysis
Current Electric Cost (Year)	$23,434
Current Rate Schedule	A-10
Integrated Solar System Size (kW) AC 70
Installed cost	$553,000
PUC rebate ($4.50/watt)	- $276,500
Federal and State Tax Credits	- $46,314
Federal and State Depreciation	- $111,999
Net System Cost	$118,187
Proposed Rate Schedule	A-6
Estimated Annual Savings	$24,982
Simple payback in years	4.73
Return on Investment	29.62%
NOTES: 1. Incentive values may vary depending upon each taxpayer's individual situation and should be determined with the assistance of a qualified tax professional. 2. State Tax Depreciation is calculated as non-corporate business taxpayer using MACR.S 3. Annual Savings is modeled using NSOL data courtesy of the National Renewable Energy Labs. Results may vary based on orientation and real world conditions.

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Solar Economic Resources:

Federal Tax Credit
California State Tax Credit
IRS Special Depreciation Allowance
California Property Tax Exemption for Solar Systems