Hot Water Solar Rebates

  • Incentive Type: Federal IRS – Personal Tax Credit
  • Applicable Sectors: Residential Amount: 30%
  • Solar Water Heating Incentive: A Federal 30% Personal Tax Credit for Individuals and a 30% Federal Investment Tax Credit for businesses.
  • Carryover Provisions: Excess credit may be carried forward to succeeding tax years up to 2016.


Incentives are now available for Solar Water-Heating Systems!

The CSI-Thermal Program offers cash rebates of up to $1,875 for solar water heating systems on single-family homes. Multifamily and Commercial properties qualify for rebates of up to $500,000. Save money on gas or electricity bills by harnessing the heat of the sun!

Funding for the CSI-Thermal program comes from ratepayers of PG&E, SCE, SoCalGas, and SDG&E. The rebate program is overseen by the California Public Utilities Commission as part of the California Solar Initiative.

Find out if you qualify

  • CSI-Thermal rebates are available to homeowners, landlords and business owners who install solar water heating systems in the service territories of PG&E, SCE, SoCalGas and SDG&E.
  • Solar water heating systems must use eligible equipment that has a Solar Rating and Certification Corporation (SRCC) OG-300 rating for single-family, and OG-100 for multi-family/commercial.
  • Solar water heating systems eligible for rebates must displace the use of either natural gas or electricity as the fuel for water heating.
  • Rebates are available for qualifying systems that were installed after July 15, 2009.

How Much You’ll Save

Rebates vary depending on the type of solar water heating system, location, shading and other design factors. A typical homeowner with a solar water heating system displacing a natural gas can expect a rebate of about $1,500 at the initial incentive level. Rebates for electric-displacing systems start at around $1,000 for the average system. Incentives will decline over time as the program meets certain benchmarks, so customers are encouraged to apply for their rebate early.