Solar Benefits
-
“How much will I save?” and “How much will it cost me?” are the two most frequently asked questions we receive. It is important to understand that with solar, your monthly solar bill replaces your utility bill. It is a reduced, substitute payment, not an additional bill.
Since your solar payment typically never increases, it is like locking in the price of gas at $3 per gallon for decades to come. The savings begin immediately and increase over time, often amounting to well over $100,000 over 25 years.
-
Homeowners are eligible to receive a 30% Investment Tax Credit (ITC) when they purchase a solar system. Whether you pay cash or finance your system for $0 down, you may be eligible to receive 30% of the total system cost in the form of a credit. The ITC applies to battery installations as well. There are currently no state level tax credits available in California.
The solar Investment Tax Credit is NOT a rebate. It is commonly misconceived that homeowners are guaranteed this benefit, which is unfortunately not the case. A homeowner must have federal tax liability in order to claim the tax credit. For an official detailed summary of how the ITC functions, please follow this link to the Office of Energy Efficiency and Renewable Energy’s website, specifically their Homeowner’s guide to the Federal Tax Credit for Solar Photovoltaics.
-
California utility companies monopolize electricity. Depending on where you live in the state, you might pay 30%-60% more per month than the nationwide average for electricity.
In 2023 PG&E expects to raise electricity rates by 18% for average homes. In 2012, PG&E customers paid about $0.12 per kWh for electricity in Tier 1. By 2022, the Tier 1 price had risen to $0.33. That’s a 175% increase over 10 years.
To keep their monthly bill level year to year, many customers are forced to reduce their electric usage. This is unfortunate and unnecessary.
If electricity rates increase by 7% per year (we’re being conservative!) and you pay $150/month for electricity now, here is your future without solar:
2023: $150 per month / $1,800 per year
2028: $210.38 per month / $2,524.56 per year
2033: $295.07 per month / $3,540.84 per year
2038: $318.96 per month / $3,827.52 per year
2043: $397.99 per month / $4,775.88 per year
2048: $493.98 per month / $5,927.76 per year
Total spent over 25 years: $147,983.40
Now here is your future with solar and battery storage:
If you currently pay $150 per month for electricity, you will likely need an average size system, 6 kw (roughly 15 panels).With one “on-grid” battery, the total cost of your system and storage will be approximately $29,500.
If you are able to claim the 30% Investment Tax Credit (ITC), this reduces your net investment to $20,600.
With solar and a battery you could save well over $100,000 over the next 25 years
-
The California power grid is old and poorly maintained. Frequent wildfires in Northern California have made power outages a way of life for many homeowners.
Battery backup provides protection against blackouts. It is important to be informed about the different battery options available, what they will back up and for how long.
Questions to consider:
How often does my power go out?
What is absolutely necessary to back up? (Refrigerator, Lights, CPAP machine)
Is it important to back up my air conditioner?
Many solar companies offer two options:
1) A home backup will provide backup power during blackouts. The battery will directly support specific circuits (breakers) in your main electrical panel. You will have a choice about which circuits to back up, and it is possible to back up your entire home with adequate battery capacity.
2) A less expensive “grid-tied” battery that only provides power during the night to save money. This option will not backup your home during a power outage (the battery does not directly support individual circuits). If you live in an area that does not often lose power, the grid tied option may be a beneficial and inexpensive route.
It is critical to know if your battery is set up to offer backup protection or just being installed to offset nightly usage. For a comparison of different options specific to your home, contact us.
-
Nearly one in three U.S. Households reported difficulty paying their energy bills. As a result, many suffer from a reduction in quality of life and increase in potential health risks associated with exposure to extreme temperatures. Solar provides a long term solution to this tragic situation, providing homeowners access to much needed electricity at prices far below what the utility charges.
No one should have to come home from a hard day's work to an overheated or ice-cold home. You should not have to feel anxious using your appliances or fear that you won’t be able to afford your energy bill.
It is common for homeowners to oversize their solar systems so they can generate extra electricity. You can achieve the healthier quality of life you deserve as a hard working American.
Solar can give homeowners access to energy at rates below what the utility charges them, giving them the power to reclaim that lost quality of life they deserve, while saving them their hard earned money. Do not let your lifestyle be negatively impacted by the outrageous, unaffordable cost of energy from the utility.
-
“Oh, my lord, we are in a very bad situation compared to even the worst case that we anticipated.”- Siva Gunda, vice chair of the California Energy Commission
“Went right up to the edge of breaking our grid, but it didn’t,”- Gavin Newsom
With record setting temperatures during the summer of 2022, California’s grid was at the brink of collapse. The facts are clear: California’s outdated grid structure is not equipped to meet the state’s current energy demands. Camille von Kaenel with Politico.com writes: “What’s needed now, officials say, is even more investment by the state akin to the Marshall Plan that rebuilt Europe after World War II.”
PG&E has current plans to put ten percent of its transmission and distribution lines underground at a staggering cost of $15 billion. Customers will inevitably be faced with increasing electricity costs to offset PG&E’s investment, as well as staggering annual maintenance costs for the rest of the state’s aging grid.
Thankfully, advancements in solar and battery storage technology challenges the outdated model of electricity generation and distribution that traditional utility companies depend upon. As an industry, solar provides the privatized, capitalistic version of the “Marshall Plan” needed to secure California’s energy future.
It is a fact that fifty percent of energy generated through traditional methods is lost in transmission on the grid, while onsite energy production and storage not only protects homeowners from grid instability, but can achieve rates of efficiency in the high ninetieth percentile. Additionally, batteries can be utilized to release energy onto the grid during periods of extreme stress in the summer when the California grid is “on the edge of breaking.”
It is part of our American culture to strive for independence and self-sufficiency. It is time to get rid of the monopolized concept of power generation by equipping our homes and businesses with technology that allows for freedom and choice.
We are facing a deteriorating grid founded on an outdated technological model. Just as the landline telephone gave way to the cell phone, the shift away from the conventional utility monopolies towards an individualized model of power generation realized through solar and storage technologies is inevitable.
Some frequently asked questions
-
The short answer: no.
We frequently hear people say “I can’t afford solar.” This is a common misconception based on installers who only provide cash purchase options. As independent solar consultants, we have access to a variety of options (including purchases) to go solar for $0 down. With long-term warranty coverage, solar and battery-backup are less expensive and longer lasting than ever before.
How is this possible? Simple, all costs (material, labor, permitting) are all rolled into your monthly payment so you don’t need to pay anything up front.
Between 2012 and 2022, the price of solar dropped 53% according to a 2022 SEIA report, and the Lawrence Berkeley National Laboratory reports that more middle-income California residents installed solar in 2021 than the state’s wealthiest homeowners.
This is why so many of our customers tell us the choice is a “no-brainer”.
-
In August 2022, Congress passed an extension on the Investment Tax Credit (ITC) through 2032: anyone who invests in solar, either through paying cash for a system or financing their purchase, is eligible for a 30% federal tax credit on their system. For example:
The average solar system (no battery) costs $15,000-$25,000. Let’s say you purchase a 6kw solar system (roughly 15 panels, the average size for a 1,500 sq. ft home) at $18,900. Your federal tax credit will be $5,670.
Batteries also qualify for the ITC and can raise the system cost by $10,000-$25,000, depending on how much storage a homeowner needs. Higher system cost means higher ITC.
The solar Investment Tax Credit is NOT a rebate. No knowledgeable, reputable sales professional will ever promise that every homeowner will receive their tax credit automatically. You must have federal income tax liability to qualify (in other words: you must be paying taxes!). However, if you are employed, whether you wind up owing Uncle Sam at the end of tax season or you receive a federal refund, there is high chance you will qualify for the ITC. For advice on a case-by-case basis, please contact us.
-
Since there are no out of pocket expenses, customers start seeing savings in the first year. How soon they reach the “break even point" depends on which type of program you choose.
Cash Purchases: Typically offer the fastest payback, usually around 5.8-7.9 years (footnote Energy Sage).
Financed Purchases: With different loan terms to choose from, you could pay your system off in as little as 10yrs, or if you just want the lowest monthly payment that never increases, the 25yr term is optimal. Since there are no prepayment penalties, you can pay it off whenever you want.
PPA/Lease: With zero investment, this option also can show great savings but is not typically considered as a traditional investment since the solar financier owns the system.
Solar is a long-term investment for your home, and if you prefer to pay cash outright, the return on investment is often shorter than one may think. According to Energy Sage, the average payback period for a solar cash purchase is 5.8-7.9 years. This might deter some residents from making the investment since the average duration of home ownership nationwide is 8 years.
However, it is not well known that solar increases the value of your home by at least 4.1% of the total property value according to Zillow. This means that even if you sell your home in year 4, you can recoup your investment.
-
The short answer: yes. With financed, leased, and PPA options, you can get a solar system and full battery backup installed for $0 down and low monthly payments.
-
Some homeowners have heard stories about difficulties selling a home with solar. What causes this and is it avoidable?
The difficulties often arise from:
The most common cause: miscommunication. Home sellers are often unclear about how transferring their system works and buyers don’t know how their system will work.
Failure to notify the solar company in advance about the home sale. Most finance and lease companies request 30 days notice to begin the transfer process. Failure to do this can create a rush at the end and increases the stress of all parties.
Old leases. Formerly, some solar leases included home liens that prevented home sellers from smoothly transferring their solar system to the incoming buyer. In the worst case, some sellers were forced to pay off systems or spend tens of thousands to buy out lease agreements. Thankfully, this is no longer common (although many realtors still assume all solar leases work like this).
As solar consultants, clear communication is our #1 priority. If you plan to sell your home in the near future, we will present you with solar options that are fully and easily transferable.
Cash purchases are easy: the incoming homeowner inherits your system.
With financed purchases, PPAs, and leases, the incoming homeowner will inherit the same monthly payments and benefits that you will receive from the solar, including all warranties, maintenance, monitoring, and insurance on PPAs and leases, and all warranties on a financed purchase.
Most financiers will state that an incoming homeowner must pass a credit check when your solar agreement is transferred—however, if they can qualify to buy your home, qualifying to take over a solar agreement should be no problem.
For advice on solar transferability, and to compare options for your home, please contact us.
-
This is a common misunderstanding–you should not owe your utility company a large bill at the end of the year. If the system is designed by experienced professionals, it should be sized to cover all your usage and with some buffer for future growth or hot summers.
The main reasons that some customers receive big bills at the end of every 12 months are:
Inadequate system design: either the salesperson designing the system did not do a thorough assessment, or misled a homeowner regarding system size (smaller systems make for an “easy sell,” but often do a disservice to customers).
Changes in electricity needs: as consultants, we carefully design your solar system based on current and future needs. We ask you questions like: do you plan to add a pool or hot tub? How about an EV? Are you using your air conditioning comfortably or would you like to run it more? How about space heaters and appliances? It is easy and simple to oversize a system for future electricity needs.
Mechanical errors: many companies emphasize the panels they use but do not explain that the inverter is the most critical component. Many solar companies use cheap string inverters. When they fail, your entire system stops producing. This is why we recommend micro-inverters: each panel has its own individual inverter, so if one panel stops working, the rest of the system will continue to function. Some high quality string inverters paired with powered optimizers can provide the same benefit.
For more information about solar equipment, and to receive customized solar options unique to your usage needs and future plans, please contact us.