It’s no secret that California is one of the most expensive states in the US, in terms of the cost products and services that is. Everything from electricity to basic goods such as food is more expensive in California than in most other states. That means that if you are considering going solar, is it worth your time, effort and money to do so in California, knowing the expenses that you might and will incur in the process? The simple truth is that even in an expensive state like California, it is worth it to start going solar. Here are some reasons you should know and think about it.
California has abundant almost the whole year
California is one of the warmest, sunniest states in the US. It has minimal cloud cover, minimal rainfall and even a rarer occurrence of snowstorms and tropical storms. Because of this, it makes much sense to install a solar panel assembly at your house. Even with a $16,000 average price tag on your 50kilowatt system, the amount of solar output converted into electricity will easily offset that cost within a few years. That’s not even factoring in the high electricity rates in the state. Switching to solar, even partially, will make you use less electricity because much of the consumption will be loaded into the solar energy system when output is at its peak or near the peak. That means you will be saving on a ton of money over the system’s lifetime, which can last as much as 25 years.
Incentives for solar energy users
Most solar installations on residential areas are eligible for a 30% tax credit the following year. This tax incentive also includes parts and labor for your installation, which is a good thing for a state like California. The state also offers a net energy metering or NEM program, wherein unused solar energy can be sold to your electricity company in return for credit. You can also get a new solar panel system for no down payment or any upfront fees. Here’s how:
Solar loans – You can take out a low-interest loan to cover the full price of your solar installation. With this arrangement, you can pay out the monthly payments with the amount you’re saving on electricity bills. You’re technically into debt by this point, but since the solar energy saves you money on utility bills, it is essentially paying for its loan.
Solar Power Purchase Agreement – With this type of arrangement, you will pay zero upfront fees for your installation. Instead, you will be paying for every kilowatt generated by the solar panel system for you. In other words, you are simply buying electricity from a cheaper source which is your solar installation.
You never quite “break-even” with this, and you can’t always cover all your electricity needs, so you may still need to have conventional electricity at your house. But this is a great option for those who can’t quite meet the initial cost of having solar panels at their house.