If you have noticed solar panels showing up on private homes a lot lately, you've likely wondered if the cost of solar panels in California is worth the significant investment they represent. While it's true that the cost of solar panels can be quite high, the truth is the potential savings they can net you on your monthly electric bill make them worth the initial investment. In fact, when you compare the amount of money you can save on an annual basis and compare that amount to the cost of solar panels, California homeowners may find themselves pleasantly surprised.
The easiest way to factor the value of going solar is determining how much you pay for your current electricity from a local grid on a monthly basis compared to how much you can get paid for the electricity produced from PV after those initial costs are deducted over the course of the system’s lifetime. This total is the amount that should matter to homeowners when they consider whether or not solar can save them money.
Caught up in this big picture approach is the idea of solar grid parity.
What exactly is Solar Grid Parity and how does it affect me?
So what exactly is solar parity and how does it affect the decision to go solar? It is the point at which the amount of money needed to produce power from solar panels is either equal to or less than the cost of paying for electricity from the grid. The sooner we get to solar parity across the country, the cheaper it will continue to get.
Essentially, the more people recognize the benefits of solar and choose to invest in this renewable energy source, the sooner it will become adopted across America, making energy cleaner and more affordable for homeowners.
How does this work? When solar companies can buy in bulk to meet the growing consumer demand for solar panels, they can lower the cost of solar panels. California homeowners, for example, may find they get better prices on materials. This impact also boosts investment in transmissions lines and helps to cut solar costs, which means it can meet the rising cost of electricity sooner, resulting in parity, or equality, until solar eventually becomes even cheaper.
How Close Is the U.S. to Solar Parity?
What is the timeline for solar parity in America? That answer depends on a number of factors, with each state facing different challenges, from limited sun exposure to transmission line investment costs. The country has set a target of boosting renewable energy usage to 20 percent by 2040, which would likely result in solar parity nationwide.
While we have some ground to cover as a country, California is leading the way as one of the 20 states at grid parity.
Weighing the Cost of Solar Panels: California Homeowners Should Be Going Solar Now
The point of parity on the grid has already been reached in California, which means installing solar panels is now more affordable than the average electricity bill homeowners have to pay off every month. Solar isn’t just an option for investing in the future of affordable energy; it can start saving homeowners money right now.
The average homeowner will cut back on costs between 20 and 40 percent – especially when the individual chooses to partner with a company like Semper Solaris. With zero down and zero out of pocket, solar energy has never been more affordable and realistic for homeowners.
Factors that make going solar affordable to homeowners now include the following:
- You receive a 30 percent federal tax credit.
- Net metering can result in money back from electricity companies.
- California has already reached grid parity.
- Great savings exist in Semper Solaris’ online specials.
- Some properties may go months without having a bill.
- The interest is tax deductible.
- Low income and low FICO scores can still finance through PACE.
What Is PACE Financing?
The PACE Financing program is a great option that makes setting up solar energy easier for homeowners, ultimately pushing us closer to solar grid parity. Short for Property Assessed Clean Energy, PACE is a financing option designed to help homeowners save money when investing in cleaner energy while adding more value to their property. PACE covers 100 percent of the solar installation cost and can be paid back over the course of 20 to 30 years, with an assessment added to the property tax bill. Homeowners start saving from day one!
The Senate bill on PACE (SB-242) will add more consumer protections for residential PACE programs in California, providing even more peace of mind to homeowners wanting to invest in energy upgrades that wouldn’t otherwise be accessible to them.
With California at solar grid parity, switching to solar is the smart investment for homeowners who want to instantly save on their energy bill and be a force for renewable energy!
