In a bold stride toward a greener future, California is demonstrating global leadership in sustainability. By strategically installing solar panels over its canals and waterways, the state is advancing clean energy and water conservation, offering a model for innovative resource management.
Engineering ingenuity is transforming California’s environmental challenges into opportunities. Canal-top solar installations not only produce clean energy but also minimize water loss through evaporation, a critical advantage in drought-prone areas. The cooling effect from water bodies can improve solar panel efficiency, enhancing overall energy output.
One example is Project Nexus in the Turlock Irrigation District, a pilot program installing solar panels over irrigation canals. Initiatives like Project Nexus are generating valuable data on the costs, benefits, and efficiency of canal-top solar technology. These insights will be essential for guiding future expansion of water-smart renewable energy solutions.
California is also evaluating floating solar opportunities on larger water bodies. Projects like the Delta-Mendota Canal study, supported by federal funds under the Bureau of Reclamation’s WaterSMART program, are exploring the dual benefits of generating renewable energy while reducing evaporation. While traditional solar incentives remain strong, many floating and canal-top solar initiatives are being driven by grant funding and pilot programs designed to prove the viability of these emerging technologies.
Here’s a breakdown of California’s solar incentives for businesses in 2025:
Investment Tax Credit (ITC): Reduces a business’s federal tax liability by 30% of the total solar project cost, extended through 2032 under the Inflation Reduction Act. Projects begun by the end of 2025 are still eligible for full credits.
Production Tax Credit (PTC): Provides per-kWh credits for energy produced, favoring large-scale commercial solar systems with long-term, inflation-adjusted savings.
MACRS Accelerated Depreciation: Allows businesses to recover up to 85% of solar project costs over a five-year period through tax deductions.
Net Energy Metering (NEM) 3.0: Enables businesses to earn credits for excess power sent to the grid. Though rates have shifted under NEM 3.0, pairing solar with battery storage maximizes financial returns.
While floating solar and canal-top solar differ slightly in design, both technologies offer enormous environmental benefits. By generating renewable energy, reducing fossil fuel dependency, and protecting critical water resources, California is establishing a powerful blueprint for sustainable development. Contact us to explore how AccuSolar solutions can help your business lead the way.
