California Solar Information

The Cost of Solar Panels

The average cost of a California solar panel is $3.03 per watt.

Therefore, the cost of the 5kW solar panel system is about $15,000 (before tax credit) or $10,000 (after tax credit).

There is no better state for solar power installations than sunny California. With rising electricity prices and relatively low solar prices, the choice is obvious.

California Solar Rebates and Tax Credits

The Federal Investment Tax Credit – with this government program, you get a 30% credit on your taxes in the following year, including parts and labor.

Net Energy Metering (NEM) program - allows you to sell unused solar power to your utility company in exchange for credit.

Solar Power Purchase Agreement (PPA) - a program that allows a free installation of solar panels, you only pay for the electricity they produce.

Pros and Cons of Buying Solar Panels in California

Pros:

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  Relatively short payback period

  The payback period is an amount of time it will take to pay off your solar power system. Today, solar panels are more efficient than ever before, meaning they produce more electricity thus reducing the energy payback period. The average time now is about 5 years.
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  After the payback period, solar power is nearly free

  Once you paid off the capital cost of the installation of the solar power system, the cost of electricity it generates is free.
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  Great savings on a monthly electric bill

  Once you installed a solar power system, you begin to generate your own electricity. It means relying less on your local utility company, no worrying about utility rate inflation, and saving money on your monthly electric bill. The savings will depend on the size of the solar system and the electricity usage.
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  Helping the environment since solar energy is clean, sustainable, and renewable

  Solar energy is abundant and generating solar power does not cause almost any pollution. When compared to some of the traditional fossil fuels, solar energy does not lead to the pollution of water and atmosphere. On the contrary, it helps to reduce carbon dioxide emissions thus lowers our negative impact on the natural environment.
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  Support from the government and the state

  The cost to install solar panels is much less than what it used to be a few years ago. With the tax credit from the federal government, incentives from the state and the various rebates from counties, the price of the solar system can be decreased by as much as 50%.
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  Very low maintenance

  Most of the solar panels today require very minimal maintenance – only a cleaning a couple of times a year. In addition, since solar panels do not have any moving parts, there is no wear and tear with usage, and they essentially produce no noise.
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  Excellent warranty protection

  Every solar panel comes with two types of warranties: a product warranty and the performance warranty. Nowadays, more and more top solar manufacturers offer extended product warranties ( up to 25 years) and some guarantee up to 90% performance even after 25 years of usage.
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  Increase in the property value

  According to recent studies by the Appraisal Institute, homes with installed PV systems sell much faster and at higher prices compared to homes without solar power systems. The study showed that the homebuyers are undoubtedly willing to pay more for houses with solar power systems.

Cons:

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  The possible high initial cost

  The initial cost to install a solar power system is relatively high. The expenses will include solar panels, battery, inverter, all the necessary accessories, mounting equipment, and the installation itself. However, with the technology moving forward and the availability of rebates, the prices are inevitable going down, making solar as affordable as never before. Moreover, going solar will start saving you money on your electric bill from day one.
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  Need to have a large, open area for installation.

  To generate electricity efficiently, solar panels have to be installed on open, non-shaded surfaces. They rely on sunlight to produce solar energy, and the more energy you need the more solar panels you will have to use. Fortunately, solar panels can be mounted not only on the roofs but on the ground as well, provided they still do have an access to sunlight.
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  Must be a property owner to install

  Today, solar power installation are mostly available to the homeowners with a good credit and/or good income. The solar benefits are not yet available to renters, people with low-income, or people without a job.

When comparing California’s solar energy advantages and disadvantages, it is clear that the advantages significantly outweigh the disadvantages. With the prices lower than ever and the great support from the government and the state, there is no better time to install solar power system and start saving money on your utility bill while helping the environment.