California has one of the most aggressive plans for combating climate change and adding renewable energy streams. By 2030 California will require all utilities in the state to source 50% of their electrical generation from renewable sources.
That deadline is fast approaching, and to achieve that goal, there are a number of benefits to getting you to invest in solar panels in California.
Here are nine benefits to get you to invest in solar power for your home:
1. Dramatically Lower Your Electric Bills
Not to point out the obvious, but by investing in solar you’re effectively reducing the cost of your bill based on the amount of electricity you generate.
That can lead to some drastic drops in monthly payments. Most solar systems have an expected 25-year lifecycle. That means for 25 years you’ll be generating free energy to power either some or the entirety of your home.
2. Get a Return on Investment– and Then Some!
Consider solar panels an investment, rather than an expense. The average payback time for investing in solar panels in California is less than five and a half years. The overall lifetime savings of a 25-year solar system is estimated to be around $74,000.
That price is far higher than the price to entry, currently estimated at around $16,000 nationwide. That’s not including the number of tax incentives that you can receive, should you install a solar system.
3. The Investment Tax Credit
The investment tax credit is a federal tax credit, offering hefty savings for those on the solar-grid.
Homeowners who buy and own their solar systems can claim and deduct 26% of the installation costs from their federal taxes (tax liability) in 2020. This rate decreased from 30% in 2019 and will decrease to 21% in 2021. The provision will drop to 0% in 2022, unless Congress renews the ITC, so act fast!
Still, 26% is over a quarter of the cost returned to your pocket the following spring.
4. Lower Your Carbon Footprint…
If you’re hoping to go green, installing a solar system is a tremendous start. Running your home strictly off of renewable energy goes a long way in lowering carbon usage.
If you invest in an electric car, you’ll further lower your carbon footprint by having your home and transportation both running off of solar energy.
And if that’s not exciting enough any excess solar power generated from your system will be transferred back into the electrical grid, potentially reducing fossil fuel usage for those around you.
5. … And Help Lower the Footprint for Others!
That’s right– if you generate more solar than you use, that solar goes back to the power grid through net energy metering. All utility companies are required to use net energy metering, meaning solar energy your system generates won’t go wasted.
So much solar was produced at certain times, that California actually transferred solar energy to other states, like Arizona. The more solar energy available, the less reliant the country will become on fossil fuels to run it.
6. Invest in America’s Energy Independence
Because the sun produces a near-limitless amount of harnessable energy, America will no longer have to rely on foreign powers for fossil fuels. This helps keep America’s interests focused squarely on America.
Further, by investing in renewable energy, America doesn’t get penalized when the prices of fossil fuels go up. This isn’t to mention the number of natural resources, such as parks and federal land, that are destroyed for us to bolster our own oil reserves.
The fewer fossil fuels needed to run the continent, the less damage we’ll do to our local ecosystems.
7. Create a New, Sustainable Workforce
The Solar Foundation, a nonprofit organization dedicated to the advancement and use of solar compatible technologies, keeps track of the impact of solar power investment in the workforce.
In the past decade, American solar jobs have increased by 167%, adding over 156,000 jobs. In the five year period of 2014-2019 solar employment increased five times faster than overall job growth in the U.S. economy.
That’s huge. And the numbers don’t seem to be slowing down. As more people transition to solar energy, there will be an increased demand for more of this work.
Unlike fossil-fuel related jobs, these positions fixate on a near-infinite energy source. Therefore, these jobs are here to stay.
8. Increase the Value of Your Home
It’s a fact that buyers are drawn to solar-powered homes. It’s simple: a solar system means all the benefits you’ve read here. They want lower bills and a more sustainable lifestyle to boot.
Appraisers take solar systems into consideration when they value homes. As buyers become more educated about solar– and as fossil fuel costs continue to fluctuate– the demand for solar will become more and more present.
This can lead to a big return when going to sell your home.
9. Local Californian Benefits
Different cities and counties offer financial benefits if you install a solar system. There are great benefits when you have solar panels in California.
Los Angeles is one of the nation’s top ten cities for electricity costs. To combat these rising costs, the Los Angeles Department of Water and Power offers an upfront rebate to help cover some of the costs of installing solar power.
San Fransisco also offers a one-time cash incentive to residents through the GoSolarSF program. In 2020, the incentive rate is $100/kW or $250/kW if your system is installed by a San Francisco contractor.
Check your local county if they have specific benefits that can cut the initial costs of solar.
Solar Panels in California are Worth Investing in Today
As you can see, there are plenty of reasons to invest in solar panels in California. Some– like the specific tax benefits– are time-sensitive. Don’t delay! Reach out for a free solar quote today.
There’s no time better than now to think about your global footprint. With the numerous incentives available and low upfront costs, we’re committed to helping you get the perfect solar system for your home without breaking the bank.