What Homeowners Should Know When Investing In Solar

How does the Investment Tax Credit (ITC) stack up to the Renewable Energy Grant (REG) for homeowners? We did a hypothetical cost comparison between the two based on the following assumptions:

- Type: Residential
- Utility: Southern California Edison
- Rebate: Step 3, $2.20/Watt
- California state tax on rebate (this is still to be determined)

Here is what we found:



According to the results, the incentive for the REG is greater than the ITC by more than $3,400.00. This amount is even larger if the 30% tax credit is not taxed at the state level. Below is a table summarizing this scenario. The incentive increases by $0.23/watt, adding almost another $2,300 to the difference in the ITC vs. REG. Either way you look at it, the REG offers a great way for homeowners to offset the initial capital outlay of a solar system.