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City, utilities and industry outline GoSolar SF incentives and savings at building-inspection forum
Summary
City staff and solar-industry representatives described GoSolar SF and stacked state and federal incentives at a Sept. 2008 Department of Building Inspection forum, showing how a typical small residential solar system's net price can be significantly reduced.
SAN FRANCISCO City officials and solar-industry representatives on Sept. 23, 2008 outlined new local and state incentives that substantially reduce the up-front cost of small residential solar photovoltaic systems, and urged homeowners to take advantage of time-limited rebates and federal tax credits.
Program basics and incentives
Laurence Kornfield, chief building inspector, opened the session and introduced Alyssa Pynn, who co-chaired a city solar task force. Pynn described the GoSolar SF program, a locally administered incentive that provides a per-meter rebate ranging from about $3,000 up to $6,000 for qualifying systems and installers trained in San Francisco. Combined with the California Solar Initiative (CSI) and the federal Investment Tax Credit (ITC), presenters said a typical 3 kW residential system could drop from roughly $20,000$25,000 installed to approximately $9,000 after all incentives in illustrative scenarios presented at the meeting.
Key incentives and timing
- California Solar Initiative (CSI): State rebate calculated per watt (presenters quoted about $1.90/watt at the time, stepping down as funding declines); for a 3 kW system that translated into roughly $4,000 $5,000 in state rebates at then-current rates.
- Federal Investment Tax Credit (ITC): A 30% tax credit for residential systems, capped at $2,000 for residential installations in 2008 (committee and industry speakers noted the residential cap and that the credit was scheduled to expire Dec. 31, 2008).
- GoSolar SF local incentive: A San Francisco program providing $3,000 to $6,000 per-meter depending on installer qualification and meter arrangements; presenters said the program could be stacked with CSI and federal incentives to substantially reduce out-of-pocket cost.
Costs, payback and suitability
Industry presenters provided ballpark costs for a typical 3 kW DC (about 2.5 kW AC) rooftop system and discussed payback ranges. A 3 kW system was described as starting near $20,000; after CSI, ITC and GoSolar SF incentives the illustrative net cost was shown near $9,000. Payback periods were said to vary widely with household electricity usage and PG&E tiered rates: roughly five years for households in high tiers with large electric bills, and longer (10 15+ years) for customers with low baseline usage.
Permitting, longevity and property tax treatment
Speakers said the city had streamlined permitting and that solar systems generally have panel warranties guaranteeing around 80% output after 20 25 years, while inverters are the component most likely to require earlier replacement. Panel speakers also noted that California law exempts solar installations from property tax reassessment for a limited period (participants discussed state law in place through 2010 and proposed extension efforts).
Why it matters
Presenters described the combined incentive package federal, state and city as making residential solar cost-effective for many San Franciscans, particularly those in higher utility tiers or with large electric loads. Staff and industry representatives urged homeowners to act before state and federal incentives stepped down or expired.
Ending
The city distributed program web links (GoSolar SF materials and SFPUC references were cited) and encouraged attendees to consult installers and city permitting staff to confirm eligibility and timing for incentives and permit-streamlining. Presenters said funding for local incentives was limited and subject to available program funds.
