Funded Commercial Solar and Energy Efficiency Programs in California

Funded Commercial Solar and Energy Efficiency Programs in California

  • Simplified Savings Program

    • Provider: PG&E
    • Description: No-cost or reduced-cost facility assessments and energy efficiency upgrades for small businesses, including those in disadvantaged communities. Upgrades may include lighting, HVAC, and refrigeration improvements.
    • Eligibility: Small businesses, including those in disadvantaged communities, served by PG&E.
    • Funding Source: California utility ratepayer funds, administered by PG&E under CPUC.
    • Source: PG&E Website

  • Government K-12 (GK12) Energy Efficiency Program

    • Provider: PG&E (implemented by Willdan)
    • Description: Supports energy efficiency upgrades for public sector buildings, including K-12 schools, with no-cost or low-cost assessments and upgrades like lighting and HVAC systems to reduce energy use.
    • Eligibility: Local government, educational, and federal agencies (K-12 schools) served by PG&E.
    • Funding Source: California ratepayer funds, administered by PG&E under CPUC.
    • Source: PG&E Website

  • Self-Generation Incentive Program (SGIP)

    • Provider: PG&E, SCE, SDG&E, SoCalGas, LADWP
    • Description: Offers rebates for advanced energy storage systems, fuel cells, and wind turbines to reduce grid demand. Rebates are higher for systems in high fire risk areas or those experiencing Public Safety Power Shutoff events. Supports commercial solar battery storage.
    • Eligibility: Commercial customers of PG&E, SCE, SDG&E, SoCalGas, or LADWP. Rebate amounts vary by location and system type.
    • Funding Source: State funds, authorized by CPUC with $166 million annually through 2024, potentially extended into 2025.
    • Source: CPUC Website
    • [](https://seia.org/state-solar-policy/california-solar/)[](https://wattlogic.com/blog/california-commercial-solar-incentives/)

  • Commercial Property Assessed Clean Energy (C-PACE)

    • Provider: Various state and local governments
    • Description: Financing program allowing commercial property owners to fund solar and energy efficiency projects (e.g., solar PV, battery storage, HVAC upgrades) with no upfront costs, repaid through property tax assessments over 10-30 years.
    • Eligibility: Commercial property owners in participating California counties or cities. Projects must meet energy efficiency or renewable energy criteria.
    • Funding Source: Local or state government funds, repaid via property tax assessments.
    • Source: DOE Website
    • [](https://wattlogic.com/blog/california-commercial-solar-incentives/)[](https://www.nuveen.com/greencapital/news-and-blog/californias-newly-enacted-building-energy-efficiency-standards-and-how-c-pace-can-help)

  • Solar Energy System Property Tax Exclusion

    • Provider: California Revenue and Taxation Code (Section 73)
    • Description: Excludes solar energy systems installed between January 1, 1999, and December 31, 2026, from increasing property tax assessments, ensuring no tax penalty for adding commercial solar systems.
    • Eligibility: Commercial properties with solar systems thermally isolated from living spaces, installed before January 1, 2027.
    • Funding Source: State tax policy, no direct funding.
    • Source: California Board of Equalization
    • [](https://wattlogic.com/blog/california-commercial-solar-incentives/)[](https://solarcoenergy.com/california-commercial-solar-incentives-2023/)

  • Investment Tax Credit (ITC) for Commercial Solar

    • Provider: Federal Government (IRS)
    • Description: Provides a 30% federal tax credit on total solar installation costs, including panels, batteries, and labor, for commercial solar projects started before 2033. Non-profits can use direct pay options.
    • Eligibility: Businesses and tax-exempt organizations installing solar systems. Must own the system (not leased).
    • Funding Source: Federal funds via the Inflation Reduction Act, extended through 2035.
    • Source: IRS Website
    • [](https://www.sixriverssolar.com/the-best-california-solar-incentives-in-2025/)[](https://premosolar.com/blog/top-commercial-solar-incentives-for-ca-businesses-2025/)

  • Food Production Investment Program (FPIP)

    • Provider: California Energy Commission (CEC)
    • Description: Grants for food processing facilities to adopt energy efficiency and renewable energy technologies (e.g., solar PV, efficient refrigeration) to reduce greenhouse gas emissions. Tier I funds commercially available technologies.
    • Eligibility: California food processing businesses with projects reducing energy use or emissions.
    • Funding Source: State funds administered by the CEC.
    • Source: CEC Website
    • [](https://database.aceee.org/state/california)

  • SCE Energy Efficiency Programs

    • Provider: Southern California Edison (SCE)
    • Description: Offers energy audits, assessments, and rebates for energy efficiency upgrades (e.g., lighting, HVAC, refrigeration) and distributed generation systems, including solar, for commercial and industrial customers.
    • Eligibility: All non-residential SCE customers (businesses, industrial facilities).
    • Funding Source: Utility ratepayer funds, administered by SCE under CPUC.
    • Source: SCE Website
    • [](https://www.cleanenergyauthority.com/solar-rebates-and-incentives/california)

  • Rural Regional Energy Network (Rural REN)

    • Provider: CPUC, administered by regional entities
    • Description: Provides energy efficiency services, including audits and upgrades (e.g., lighting, insulation), to commercial and public sector facilities in rural and underserved areas of Central and Northern California.
    • Eligibility: Commercial entities and public facilities in rural areas served by CPUC-regulated utilities.
    • Funding Source: CPUC-approved funds, part of $4.3 billion energy efficiency budget (2024-2027).
    • Source: Utility Dive
    • [](https://www.utilitydive.com/news/california-puc-energy-efficiency-funding-rural/654390/)

Notes:

  • Eligibility: Many programs target small businesses, disadvantaged communities, or specific industries (e.g., food processing). Some require enrollment in utility programs like CARE/FERA for enhanced incentives.
  • Funding: Programs are funded by federal sources (e.g., Inflation Reduction Act), state utility ratepayer funds under CPUC, or local government financing (e.g., C-PACE).
  • Verification: Verify eligibility with providers (e.g., PG&E at 1-800-933-9555, SCE at 1-800-736-4777, or CEC). Be cautious of scams claiming "free" incentives.
  • Availability: Some programs (e.g., SGIP) have budgets allocated through 2024, with potential extensions in 2025. Check program websites for current status.
  • California Solar Mandate: As of January 1, 2023, new commercial buildings (e.g., offices, retail, schools) must install solar PV and battery storage systems under the 2022 Building Energy Efficiency Standards, increasing demand for these incentives.
  • [](https://revel-energy.com/cec-energy-code-to-require-solar-storage-in-2023/)[](https://www.energytoolbase.com/blog/policyupdate/commercial-buildings-mandated-cec/)