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.
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.
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.
There are various solar incentives depending on the county you live in:
When you install solar you’ll qualify for a $2,000 rebate. By using a local installer, you get another $700. If you participate in the California Alternate Rates Energy (CARE) and CalHome programs, OR if you live in the 94107 or 94124 zip codes, you qualify for an additional $800.
Solar customers are allowed to sell unused electricity back into the grid at the full retail price, and any unused credits rollover to the next month. In addition, if your annual credits exceed $100, the local utility will compensate you with cash every April – with a maximum payout of $5,000.
Solar customers are allowed to sell unused electricity back into the grid one penny above retail price, and any unused credits rollover every month. In addition, if your credits exceed $100 for the year, you will be eligible for cashback.
Through My Clean Energy’s NEM program, solar customers sell unused energy back to the grid one penny above retail price, and unused credits rollover to the next month. If the annual amount of credits exceeds $100, My Clean Energy will compensate you with the cashback.
East Bay Clean Energy NEM program will buy unused electricity ay the full retail price, and unused credits rollover every month. If you have enough credits at the end of the year, the utility company will pay you up to $2,500.
Monterey Bay Power Community NEM program buys unused electricity from solar customers at a locked rate. In addition, solar customers qualify for a 3% credit for their annual power generation, even if they end the billing cycle with a negative balance.
All solar customers in California qualify for a $50 cash-back rebate from PG&E if they install the Nest Learning Thermostat with their solar panels.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.