Are you finding the solar panel deals in California? Blessed with sunshine throughout the year and its rigid commitment to renewable energy, California presents a plethora of opportunities for those who aim to turn homes and businesses solar. The ever-increasing electricity costs and the state’s goal of using 100% clean energy by 2045 make this an opportune time for switching to solar power. The upfront cost of installation, however, is a major entry barrier for many. Fortunately, there are ample deals, incentives, and financing options available in California that can help drive down the cost of solar energy. This article will walk you through the best solar panel deals in california and how to maximize your savings.
Understanding the Solar Panel Deals in California
Knowing how much the average installation price is will allow you to separate good deals from bad ones. On average, solar panels in California cost around $2.75 to $3.50 per watt, so an average-sized 6 kW solar system could cost you between $16,500 and $21,000 before incentives. This cost may differ based on variables such as the size of the system, the quality of the panels, or even the complexity of the installation.
State and federal incentives
California has several incentives that can significantly reduce the cost of getting a solar panel installed. These are normally the very first “deal” that any homeowner should take advantage of, including:
Federal Solar Investment Tax Credit (ITC)
This stands out as one of the most crucial financial incentives for solar energy in the United States. It offers a benefactor a tax credit the equivalent of 30% of the cost incurred in installing a solar energy system, deductible out of your federal income taxes.
How it works: You spent $18,000 on solar installation; you would get a tax credit of $5,400, bringing down your actual cost to $12,600.
California’s Net Energy Metering (NEM)
This program permits solar panel owners to distribute surplus electricity back to the grid at the retail rate. Although it really helps you slash off your monthly electricity bill and, in some instances, generate credits that you can utilise during less sunny months.
How It Works: If your solar panels generate more electricity than you can use at any given time, the excess is fed back into the grid, and the utility company provides you with a credit on your bill. Over time, these credits can really add up and translate to significant savings.
California Solar Initiative (CSI)
While the CSI program has largely expired for residential customers, it still provides rebates for a great many non-residential installations. It also has laid the foundation for other regional rebate programs across California that your utility may still be offering.
Local and Utility Company Rebates
Many local governments in California, together with utility companies, offer added rebates and other incentives to therefore render solar more affordable for more people. Some of the regularly occurring programs in this regard are listed below:
- LADWP Solar Incentive Program
The Los Angeles Department of Water and Power offers rebates on residential and commercial solar installations. These rebates are tiered, based on the size of your system, and can significantly reduce upfront costs. - Active Incentives: rebates change periodically and might vary. Please visit LADWP’s website or directly contact LADWP for the best update information.
PG&E Solar Choice Program
The Solar Choice program of Pacific Gas and Electric enables PG&E customers to source a fraction of their electricity from solar without the need for installing solar panels. PG&E also offers rebates and incentives for those who install solar panels under their different programs.
Current Offers: Rebates and incentives vary by location and size of the system, so the best bet would be to check with PG&E for any current offers available.
- SCE Solar Rebate Program
Southern California Edison has offered, in the past, solar rebate programs. It now supports the adoption of solar with net metering and other incentives. - Current Offers: Depending on incentives, rebate amounts fluctuate, so consult SCE for current offers.
- Solar Financing Options
Apart from the rebates and incentives, a solar panel installation can be made affordable through the following financing options:
Solar Leases and PPAs
With a solar lease, you rent the panels from a provider in exchange for a fixed monthly fee. With a PPA, you agree to purchase electricity that the system generates at a pre-agreed rate.
- Pros: Zero or little up-front cost, predictable monthly payments, and in most cases, the maintenance is handled by the provider.
- Disadvantages: You do not own the system; you will not benefit from property value increases or federal tax credits.
Solar Loans
Solar loans help customers finance the purchase of their solar system. These loans may be secured or unsecured and often have very competitive interest rates.
- Pros: You will own the system, be eligible for federal and state incentives, and increase your property values.
- Cons: Monthly payments could be greater than that of a lease or a PPA, based on the loan terms.
Property Assessed Clean Energy Financing
Property Assessed Clean Energy financing allows an individual to finance solar panels as part of property tax assessment; one makes payments as part of the property tax bill over some specified period.
- Pros: Zero-down upfront, long repayment periods, and the loan is tied to the property rather than a person.
- Cons: PACE financing isn’t offered everywhere and can affect your ability to sell your home easil
Seasonal and Promotional Deals
Most solar companies have seasonal or promotional discounts, special deals, or referral bonuses that help reduce your cost of installation even further. For example,
End-of-Year Promotions:
With the federal tax credit step-down looming, some companies provide pre-end-of-year discounts to help incentivize customers to install before the credit drops.
Referral Bonuses:
Many solar companies offer cash or credit bonuses for referring new customers that can lower your system price or put cash back in your pocket.
Conclusion
If you live in California, using solar panels makes a lot of sense both to the environment and your wallet. Combine local rebates, different state and federal incentives, financing options, and promotional deals, and you’ll reduce the cost of going solar. From financing your system with a loan to leasing it or engaging through a power purchase agreement to availing the rebate programs from your utility company, the savings, and benefits associated with solar energy are within easy reach. With the right approach, you can enjoy long-standing financial and environmental benefits through solar power, in addition to contributing to California’s renewable energy future.
Get a Quote In case you are interested in integrating an inverter with a solar charger into your power system, do not hesitate to contact us today for your custom quote.
Frequently Asked Questions
Are there any zero-down financing options available for solar panels in California?
In fact, most solar companies in California now offer no-down-payment options for their solar leases and PPAs, in addition to specific solar loans. This means you can have solar panels installed with hardly any upfront cost, which increases the potential for far more solar homeowners.
Am I still able to get the federal tax credit on solar in 2024?
Do you still have the federal solar ITC available in 2024? It will reduce your total cost for a solar panel system by 30% through a federal tax credit, leaving the overall cost of switching to solar energy much less.