Homeowners interested in sticking solar panels on their roofs got a big boost from the new $787 billion economic stimulus package.
Now homeowners will be able to get a federal tax credit worth 30 percent of the cost of their new solar system, even if they're also receiving state or local financing.
That could make a big difference in stakes such as California, which offers rebates to homeowners who install solar systems. And Berkeley has a new solar financing program that lets homeowners pay the cost of their solar systems over 20 years, a program other cities plan to emulate.
A typical home solar system generates about 3 kilowatts of power. The installation cost averages roughly $8.10 per watt, according to Adam Browning, executive director of the Vote Solar advocacy group, meaning the typical cost is $24,300.
The California rebate is now $1.55 per watt for homeowners in Pacific Gas and Electric Co. territory. So the average rebate is worth $4,650, bringing the overall cost down to $19,650.
Although it's unclear just how the stimulus provisions will work, several solar industry sources said they expect the federal tax credit to be based on a solar system's price after the state rebate is subtracted.
So for the typical California homeowner, the 30 percent tax credit will be worth $5,895, cutting the overall cost to $13,755.
E-mail David R. Baker at dbaker(at)sfchronicle.com.
(Distributed by Scripps Howard News Service, www.scrippsnews.com.)
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