Fire victims save money by going solar

San Diego Gas & Electric (SDG&E) power is about to be installed next door to my house, so I’m having to think about the pros and cons of increasing my small off-grid system versus going on the grid.

Some of the research I’ve been doing has yielded interesting information for those rebuilding after the 2007 wildfires – and anyone else considering solar power.

In a recent conversation with the owner of a solar company, he mentioned that, in addition to the 20 percent rebates for homeowners who add solar to existing homes, SDG&E is offering special financial incentives for 2007 fire victims who add grid-tied solar systems during their rebuild process.

A grid-tied system is one that is attached to the public power grid. It generates power during the day, selling any excess to the power company, and draws from the grid at night and on cloudy days. You generally have a small credit or a small bill at the end of each month.

SDG&E is also offering fire victims special rebates for rebuilding with other sustainable features as well – specifically those that increase energy efficiency.

The process has a number of bureaucratic hoops to jump through (no surprise there), but the bottom line seems to be:

• Rebates of up to $4,000 for energy efficiency that exceeds Title 24 compliance (Title 24 is California’s residential energy code.)

• A rebate of up to $9,000 toward the installation of a grid-tied solar system

These rebates can be combined, for a total of up to $13,000.

These same incentives exist for any SDG&E customer who builds a new home with energy-efficient features and/or a grid-tied solar system – the dollar amounts are just lower.

It’s a great opportunity to get someone else to help pay for part of a new home or fire rebuild and get a house that will continue to save you money every year.

If you are outside the SDG&E service area, check with your power utility to see what types of incentives they offer.

The Federal Government has also gotten into the “solar-incentive” game, at least with businesses. The solar expert told me that commercial buildings that add solar get not only the 20 percent rebate on the cost of the system (including installation) from SDG&E but also a 30 percent Federal tax credit on the portion of the cost not rebated by SDG&E.

If I’m doing my math correctly, that’s an overall combined rebate/tax credit of 44 percent. I wonder if there would be any further write-off for capital improvements to the business. Any accountants out there, let me know what you think.

Just to be clear, off-grid systems like mine do not qualify for any rebates or tax credits in the programs listed above. But there are other advantages, such as never paying an SDG&E bill, having power during blackouts and disasters, even (possibly) lower cost than bringing SDG&E power to a property that is not near an existing power pole.

SDG&E and Sempra Energy are offering information and monetary assistance to 2007 fire victims as well. For more information, call toll-free (866) 262-4842.