Take Advantage of California Solar Incentives for Commercial Buildings

Taking Advantage of California Solar Incentives for Commercial Buildings

Updating a property with solar energy isn’t just about meeting corporate sustainability goals or long-term operational planning goals — it can also reduce operational costs, increase property value, and improve power reliability. With California offering various state-based incentives, property owners can take advantage of cost-saving programs to make solar installations more financially viable.

As part of our Owner Strategy Series, GM Properties consulted with Marika Erdely, CEO of Green Econome, to provide building owners with guidance on navigating energy regulations and optimizing property performance.

Why Commercial Property Owners Should Consider Solar

Solar energy delivers direct cost savings by reducing both kilowatt-hour (kWh) consumption and kilowatt (kW) demand charges on utility bills. These reductions can add up to significant long-term financial benefits, particularly for large commercial properties with high energy usage. It also offers a range of benefits beyond reducing electricity bills.

One of the most significant advantages is power independence — properties with solar panels and battery storage can continue operations during power outages, ensuring that critical systems such as security cameras, refrigeration, and essential equipment remain functional.

For property owners in areas prone to natural disasters, solar energy can also provide a layer of resilience. In the event of grid failures due to wildfires or other emergencies, having an independent power source can keep business operations running. For commercial buildings undergoing major modifications — such as upgrading HVAC systems or making structural changes — solar installations can further enhance energy efficiency and reduce reliance on traditional utility providers.

Property owners should work with energy consultants to identify the best solar solutions for their specific building needs. They should also ensure their roofing systems meet industry standards to avoid potential issues with insurance providers.

Key Solar Incentives in California

Several California-based programs make solar adoption more accessible and cost-effective for commercial property owners. Here are a few of the most impactful incentives available to help offset installation costs and maximize savings. 

California Energy Design Assistance (CEDA): Available through utility providers such as PG&E, SoCalGas, and SDG&E, this program offers free energy modeling for commercial buildings to demonstrate potential energy savings before installation. Property owners can use these insights to maximize efficiency and return on investment.

Zero By Design (ZBD) Program: ZBD provides financial incentives for property owners who go beyond standard building code requirements to achieve higher energy efficiency. This program offers state grants that many commercial developers and architects are unaware of, making it a valuable resource for those planning major renovations or new construction projects.

Solar Investment Tax Credits (ITC): California offers state-level tax credits for solar installations, covering up to 50% of project costs in some cases. While federal incentives may change in the future, state tax credits remain a reliable financial benefit for property owners.

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