Incentives and Financing Options

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Incentives

Solar Panels Close Up Silicon Valley Power no longer provides residential rebates for solar photovoltaic (PV) systems. However, you may be eligible for federal tax credits. Silicon Valley Power recommends contacting your accountant or visit the Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics for more information.

Financing Options

There are many ways to help finance the installation of a PV system. The three most popular financing options are to buy, lease, or Power Purchase Agreement (PPA).

Buy a Solar System

You can purchase a PV system up front or through a bank loan.

Pros	Cons
Lower your electricity costs Maximize your financial savings You may be eligible for federal tax credits Increases the value of your home	Large upfront payment Interest on a bank loan may offset the savings on your electric bill You (owner of the system) are responsible for all maintenance and repairs beyond PV system's warranty

Lease a Solar System

A solar company will install a PV system on your home at no cost and charge you a fixed monthly fee for using it.

Pros	Cons
Lower your electricity costs No large upfront payment The contractor (owner of the system) will maintain and monitor the system and typically will guarantee a certain amount of production If for some reason the PV system does not produce a certain amount of energy, the contractor may provide a monetary reimbursement Fixed monthly payments and easier to predict energy costs	Your monthly rate may increase over time If selling your home, typically the lease will require you to buy-out the system or will require the new homeowner to assume the lease

Power Purchase Agreement (PPA)

Similar to a leased PV system, a solar company will install a PV system on your home at no cost, however, instead of renting the system, you pay for the PV system’s energy production on a kilowatt hour (kWh) basis per month.

Pros	Cons
Lower your electricity costs No large upfront payment The contractor (owner of the system) will maintain and monitor the system, and typically will guarantee a certain amount of production If for some reason the PV system does not produce a certain amount of energy, the contractor may provide a monetary reimbursement	You may be required to pay for all PV production, regardless if you use it or not Your monthly rate may increase over time. If selling your home, typically the PPA will require you to buy-out the system or will require the new home owner to assume the PPA

Income-Qualified Solar Grant

Silicon Valley Power’s Income-Qualified Solar Grant program provides qualified homeowners with a free solar photovoltaic (PV) system. The program provides a grant of $3.75 per watt, up to 3 kilowatts DC to cover the costs of the system. Silicon Valley Power provides a consultation to all applicants to educate them about owning a solar system, changes to their electric utility bill under the Net Metering Program, and assistance in evaluating bids from solar installers to ensure they meet program requirements.

Grant recipients will be selected on a first come, first served basis. To qualify for this program, the recipient must be a homeowner, current Financial Rate Assistance Program (FRAP) customer, and have participated in FRAP for more than one year.

Program guidelines

Last Updated:

09-11-2023

Silicon Valley Power

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Incentives and Financing Options

Incentives

Financing Options