In a recent study, San Diego was second in the nation for solar PV capacity on a per capita basis. It racked up more than 420.4 megawatts of installed capacity, behind only Los Angeles.
Going solar is a great way to reduce your energy costs and help the environment. With the right installation and a good solar company, you can save thousands on your electricity bills over the life of your system.
Cost
San Diego is home to some of the sunniest weather in the country, making solar a cost-effective and green way to power your home. Using this abundant natural resource is not only a good environmental choice, it can also add significant value to your property, increase your energy savings and help you sell your home faster.
For example, a home in San Diego that saves $20,000 on electricity costs over the course of its lifetime can generate an additional $26,180 in resale equity. That’s a lot of extra cash in your pocket!
Generally, the cost of a solar system can be significantly reduced by taking advantage of state and federal incentives. For example, the 30% federal tax credit and other state programs can reduce your system cost by thousands of dollars. In addition, the city of San Diego recently launched a solar equity program to help low-income homeowners install solar systems for free or at a discounted rate.
Energy Savings
Solar panels are an excellent energy investment in San Diego, thanks to the city’s abundance of sunshine. Homeowners who go solar could save thousands of dollars on their utility bills over the life of their system.
With a conservative rate of inflation, you could expect to pay back the cost of your solar system in just over five years. Over 10 years, your savings could be even larger.
In California, the average household pays around $240 a month for electricity, according to the Bureau of Labor Statistics. In comparison, a solar in San Diego can reduce that bill by nearly $480 a month!
This energy savings can be achieved through a variety of different methods, including leasing your solar panels, entering into a power purchase agreement (PPA), or participating in a community solar project. You can also find many financing options on the state’s Go Green Financing website.
Payback Period
Solar installation is an expensive investment, so it’s important to know how long it will take you to realize the full value of your solar investment. This is typically called the payback period.
One way to measure the payback period for solar is to compare your electricity savings to your total solar cost. This calculation depends on many factors, including your current electric rates, available incentives, how much you use energy and how well your solar system works.
Another factor is solar degradation, which reduces the amount of energy your panels produce over time. This decrease in output will affect your savings and your payback period.
In addition, you may want to consider adding a battery to your solar system, which can lower your solar cost and increase your payback period. Batteries allow you to store electricity produced by your solar panels during the day and use it later at night.
Tax Credit
The federal tax credit is one of the most well-known incentives for solar energy. It’s known as the Residential Clean Energy Credit, or ITC, and it covers 30% of the cost of your solar installation.
This credit may be worth as much as $6,000, depending on how much you owe in federal taxes. You can claim your credit on the tax return for the year in which your system was installed.
Additionally, the state of California provides a property tax exemption for any new solar installations. The law exempts you from paying property taxes on the value of your system until 2025, as long as it increases your home’s value by more than a certain amount.
In addition, San Diego Gas & Electric and the Center for Sustainable Energy have created a program that lets families in communities that are at risk from climate change get solar systems for little to no money. The program is designed to help low-income families and people on tribal lands.
