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Tax Breaks For Solar Energy

Legislation that would pave the way for the expansion of solar energy in California will be decided by Governor Schwarzenegger. Two bills give tax breaks to homeowners and commercial solar facilities.

Tax Breaks For Solar Energy


Legislation that would pave the way for the expansion of solar energy in California will be decided by Governor Schwarzenegger. Two bills give tax breaks to homeowners and commercial solar facilities. KPBS Reporter Ed Joyce has more.

One bill renews an existing exclusion from property tax assessment on the value of solar energy systems.

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The bill also extends the tax break to builder-installed solar  systems in new homes.

Sara Birmingham is with Solar Alliance, a national association of solar installers.

She says the tax break is a vital incentive for the construction of both home and  larger commercial solar plants.

Birmingham: It's absolutely crucial and critical that this exemption is moved forward because a lot of these projects will just not be able to be put in the ground without it.

Two solar companies say a deal they have to provide Pacific Gas and Electric with renewable solar power would be less likely if the state didn't offer a property tax exemption.

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Another bill allows homeowners to let companies install solar systems.

Those companies could then sell the energy generated and give homeowners a break on their electric bill.

Ed Joyce, KPBS News.