Is It Worth Going Solar In California
As per the Energy Department (NREL), the cost of installing a 5kW solar power system is about 16000 dollars on average. California is even higher than the national estimate because of the state’s expensive labor cost and installation charges.
With that being said, going the solar way may be an expensive ordeal for many households, they may wish to invest and benefit from a solar panel installation, but do not have the money readily available to invest in the same.
If you are amongst the people with a budget issue and wonder if it is worth shelling out that much money to get benefits on power bills or support environmental initiatives. The answer is “Yes”, even in states like California that are supposed to be expensive. It is worth every cent of investing in solar panels. Let us understand them better through this article.
Advantages of Solar Panels:
The most important reason for homeowners to opt for a California solar company is to bring down the expenses incurred to pay the local utility company. Getting solar panel installation at your home allows you to generate your own clean power that is powered by your very own sun. This in turn brings down your power consumption bills.
Since this saving is a monthly recurring saving, the solar panels guarantee that they will eventually return the money you have invested. This holds true in the market of California primarily because there is enough sunshine around the year and secondly the power prices from utility companies are high as compared to other states.
Let us understand with an example, if the amount of money you save using solar energy is 100 dollars a month, you will get back the money invested in approximately 14 years, the assumption here is the power rates would stay constant, but in reality that will not be the case, the electricity prices nationally are moving up every passing year. Hence your savings are increasing with time, therefore the return on investment will be much lesser than 14 years in reality.
Now let us assume you have paid 16000 dollars for your solar panels. But have you? Here’s why: Most of the residential solar panel installation is qualified for a tax credit under federal investment (that is 30% credit in the following year on your tax, this includes labor as well as parts).
Secondly, California State follows what is called NEM which is a net metering feature with the utility company, this program allows you to sell your unused solar energy to the utility company and you get credit on your next bill, this is a recurring activity.
Now, it is quite obvious why the return on investment time is much lesser. To know the next most important thing, continue reading.
Do solar panels work in California Winter?
Well, let us approach this answer a little differently, the regions with snowy winters are amongst the most popular regions that use solar panels. Places like California are one amongst them, remember solar panels are installed angular way so even if the snow was a factor it would just slide away. While California is known for its abundance of sunshine, the areas near the bay have foggy days too.
Though solar panels do not come with a self-cleaning technology for snow, so the snow may affect the output of the panel if they cover the solar cells. Having said that, it never means that the snow is a culprit; it works for the benefit of the solar panels. Always remember that solar panels undergo pressure tests.
Remember you use sunscreen when you head out during a snowy day, this is the exact reason why solar panels become effective in snowy places or the winters. The snow reflects the sun rays thus improving the overall output of a solar-powered electrical system. Researchers suggest that the panel lose their effectiveness at around 77 degrees Fahrenheit.
The simple science behind solar panels is they convert photons (sunlight) to voltage or electricity using the photovoltaic process. The same way you fear of getting sunburn in winters. The light waves work and power the cells of a solar panel.
Does solar increase home value in California?
The research conducted by NREL suggests that every 1 dollar saving on your energy bill due to the installation of a solar energy source adds to approximately 20 dollars to the existing value of your property. This is dependent on a few factors; let us understand them at length.
- The Size: Property value appreciation is directly impacted by the quality of the panels installed.
- Property Value: Large houses normally get higher boosts in property value, with that being said, the boost in the value is often a small percentage of the overall property value.
- The actual number changes for each property and as per installation, but the latest research shows that the increase of resale value on an average is about 5900 dollars for each 1kW installed solar power system. To give an example, a 3.1kW system in California will be valued at approximately 18000 dollars for a medium-sized property.
- The value of your property increases as you move up the ladder, for example, a 5kw installation gets you a value of approximately 30000 dollars for a medium-sized property.
It is good to remember that these statistics apply as per the property prices of today as well as the utility rates. As electricity prices go up, in all probability the property price will also appreciate.
No, the most important question, read on.
Is there a California tax credit for solar?
The answer is “Yes”, there is a tax credit for solar. In the current fiscal year that is 2020–2021 the tax credit for buying is 26% of the price that you buy the entire solar setup, plus the labor charges.
So you do benefit from this opportunity, as these rates will go down further starting with the next fiscal at 22%.
Finally, though this year has shown us a lot on the downside, there is some upside to it as well. And going environmentally friendly is one of them. Do get your solar setup as soon as you can. And make the most of it.
