Is Solar Worth It in California? Everything You Need to Know [2024]
Many Americans are unsure what to expect from the country’s political climate in the coming years, and worries over policy changes are widespread.
One big question that looms on the horizon in Santa Cruz, the Central Coast, and across the country is how changes to state and federal rules and regulations could affect alternative energy, specifically the solar industry.
If you’re wondering, “Should I install solar panels in 2024?” we’re here to help answer your questions.
Key Takeaways
Because solar energy can save money compared to rising utility costs and promote energy independence, installing a residential solar system is still an excellent idea for most homeowners, especially if it is paired with a battery system.
Pairing solar with battery storage enables homeowners to minimize buying expensive energy during “peak hours” from the utility.
A correctly sized solar panel system decreases a household's carbon emissions and provides a clean, reliable, climate-friendly energy source.
Installing solar panels can enhance property value, making homes more attractive to buyers who prioritize energy efficiency and sustainability.
To learn more about solar panel systems, contact Sandbar Solar & Electric.
Is it Worth Getting Solar Panels in California?
Pros of Going Solar
1. Save on Energy Costs
Once the system is installed, homeowners typically find that their monthly energy costs go down significantly.
In terms of savings, the average California homeowner can expect to save about $691 on electricity annually, depending on energy consumption and local electricity rates.
This translates to a strong return on investment, and many solar system owners recoup their upfront costs within 7 to 10 years.
2. Decreased Carbon Footprint
Installing a residential solar panel system lowers your home's carbon footprint by reducing dependence on fossil fuels.
Traditional energy sources, like coal and gas, release greenhouse gasses that contribute to climate change.
By switching to solar energy, you’re investing in a clean and renewable energy source, which creates a cleaner atmosphere and helps mitigate climate change.
3. Increased Home Value
Installing residential solar panels can boost a home's market value.
Although the added value can vary by location, the National Renewable Energy Laboratory (NREL) found that home value increases by $20 for every $1 saved on your utility bills. Buyers are attracted to the benefits of solar, including lower energy bills, so it’s easy to see why solar-equipped homes are so desirable!
“Cons” of Going Solar
1. Initial Investment Costs
Before savings provided by the federal solar investment tax credit (ITC), the average cost to install solar panels in California was $16,380. After the ITC, that cost drops to an average of $11,466.
However, you can reduce your upfront costs and make the system more affordable by taking advantage of federal tax credits, state incentives, and utility rebates.
Financing options, such as solar loans or leases, are also available, making it easier to manage payments while immediately reaping the benefits of solar energy.
2. Changing Regulations
The recent uncertainty around net energy metering - particularly with NEM 3.0 changes - can discourage some from transitioning to solar.
That said, there are many ways to navigate these regulations.
One great option is to install battery-assisted solar systems, which allow you to bypass some restrictions and maximize your energy independence.
For more information on NEM 3.0, check out our blog here.
Pros:
Reduce or eliminate your monthly electricity bills
Increase property value
Low maintenance costs
Environmental benefits
Available tax credits and incentives
Cons:
Upfront initial investment
Optimal performance is dependent on sunlight hours
Performance may vary based on weather
Interested in Going Solar? Here’s Why You Should Choose an Established Provider
When choosing a solar provider, selecting a reliable company is critical.
Recent events in the solar industry, like the bankruptcy of California’s SunPower Corporation (which affected more than half a million solar customers), demonstrate how risky it is to work with companies offering the lowest price, or even larger companies who are not running their company in a sustainable way.
With that in mind, here are some key points to consider as you shop for a solar provider:
Experience: Look for a company with years of experience in the industry. Remember, experience often translates to reliability.
Reputation: Check client reviews and ask for references to assess the provider’s track record.
Support: Choose a provider that offers ongoing support and maintenance to keep your solar system running smoothly.
Transparent Pricing: Ensure the provider offers straightforward pricing with no hidden fees.
We understand that installing solar power is a big deal, and you want to work with a provider you can trust.
Fortunately, Sandbar Solar is a reputable solar provider for Santa Cruz and the surrounding areas, and we’ll work with you to design a solar panel system that meets your needs.
6 Factors to Consider Before Going Solar
Here are a few things to think about before you start work on your solar panel system:
1. Location
Your home's geographical setting plays a significant role in solar energy production.
Fortunately, areas with ample year-round sunlight, like Santa Cruz, are ideal for maximum solar efficiency.
2. Local and Federal Tax Incentives
Understanding the financial incentives available can help determine if a solar system is within your budget.
Federal tax credits, utility rebates, and state-specific programs can reduce the overall installation cost and make even a large system more affordable.
Keep in mind that it is essential to monitor these incentives, especially in light of changing policies.
3. Monthly Energy Consumption
Your current energy usage will determine the size and scale of the solar system you’ll need.
Before you request a solar quote, gather your monthly electricity bills or annual electricity usage from your online account to get an idea of potential savings and system requirements.
4. Maintenance Requirements and Expected Lifespan
Solar panels may require minimal maintenance, and benefit from regular cleanings to prolong their lifespan.
Understanding the care and upkeep needs of solar systems will help you set realistic expectations for your investment.
5. Factors Unique to Your House
Other critical factors to consider are the type and condition of your roof.
Assessing the angle, material, and overall integrity of your roof will determine whether it can support solar panels as is or if it will need repairs first.
6. New/Upcoming Laws and Regulations
It is crucial to stay informed about legislation like NEM 3.0, which affects net energy metering policies.
Additionally, potential shifts in energy policies could influence the availability of solar incentives and regulations in the future.
Is it Worth Getting Solar Panels? The Answer is Yes.
Electricity rates tend to increase an average of 6% per year, but in recent years, these increases have been even larger. Now is the perfect time to invest in clean energy to protect yourself from these rising rates and take advantage of its benefits.
Today, installing solar panels for your home still remains the best way to reduce your carbon footprint and monthly energy bills.
Ready to learn more? Contact the team here at Sandbar Solar!
FAQ
1. Do solar panels increase my home's value?
Yes, solar panels boost your home's value.
Research shows that homes with solar energy systems sell for more than those without.
Many buyers appreciate the chance for lower energy bills and a smaller carbon footprint.
The exact value increase depends on the system size and local real estate conditions.
2. What are the environmental benefits of solar panels?
Solar panels help reduce greenhouse gas emissions and dependence on fossil fuels.
They also promote cleaner air and a healthier ecosystem and reduce the carbon footprint of solar-equipped households.
3. Which homes benefit the most from solar panels?
Homes that get plenty of sunlight during the day, especially those with south-facing roofs, generally produce the most solar energy. East-facing and West-facing roofs are also great.
Local electricity rates and available incentives usually also help determine which homes can reap the most benefits from solar installations.
4. Can a house run purely on solar?
Yes, a house can run entirely on solar power if it has a properly sized solar system and battery storage.
This setup lets homeowners save extra energy from sunny days for use at night or on cloudy days.
5. How much does solar save you in California?
The savings from installing solar panels in California can vary widely based on several factors, including the size of your system, your energy consumption, and available incentives.
Additionally, with net metering policies, homeowners can earn credits for excess energy produced, further increasing savings.
Request a free consultation with one of Sandbar’s experienced energy consultants to see how much you can save on solar and battery energy.
6. Can I install my own solar panels in California?
We don’t recommend it, and using a licensed electrician for the electrical work is often required by local CA building departments. Installing a safe, functional solar panel system requires thorough knowledge of local regulations, building codes, and best practices.
While DIY installations may save on labor costs, they can be dangerous and time-consuming, and the consequences for “getting it wrong” are significant (learn more about the pros and cons in our blog here).
Additionally, to take advantage of incentives—like the federal tax credit—you'll need to ensure the system meets specific requirements and is installed correctly.
7. How long do solar panels last?
Most solar panels can remain operational for 30 years or more with minimal degradation in efficiency.
Regular maintenance and proper installation contribute to maximizing the life of your solar system, ensuring you reap the benefits for many years to come.
Reach out to us today to explore your options! (831) 469-8888
