Benefits of Solar Energy
Solar energy has multiple advantages that will enhance your home for years to come.
- Better energy independence: Solar energy can keep your home functioning through blackouts and emergencies, giving you additional security. You can use your solar energy anytime with optional battery storage.
- Lowered energy bills: Solar panels allow you to generate your own energy to power your home, minimizing your regular electricity costs. Going off-grid can eliminate your bills completely. Plus, a significant number of states offer net metering, which permit you to earn money by selling your unused energy back to the grid.
- Reduced carbon footprint: Utilizing solar is a surefire way to minimize your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Arden-Arcade Homeowners?
The state of California offers a range of solar incentives to help reduce your solar system costs. Below is a breakdown of eligible solar programs where you live.
Incentive Type: Property Tax Incentive
Website: boe.ca.govIncentive Amount:
100% of system value; 75% of system value exemption for dual-use equipment
Incentive Type: PACE Financing
Website: wrcog.usIncentive Amount:
Eligible products can be financed for up to 25 years, depending on the useful life of the eligible product.
Minimum financing: $5,000
The financing may not exceed fifteen percent (15%) of the market value of the property, up to the first seven hundred thousand dollars ($700,000) of the property’s market value, and ten percent (10%) of the remaining value of the Property above seven hundred thousand dollars ($700,000) minus any PACE assessment on the propertyThe total amount of any annual property taxes and assessments shall not exceed five percent (5%) of the property's fair market value, determined at the time program financing is approved.
Incentive Type: PACE Financing
Incentive Amount:
Locally determined
Incentive Type: Feed-in Tariff
Website: cpuc.ca.govIncentive Type: Feed-in Tariff
Website: ladwp.comIncentive Amount:
$0.17/kWh adjusted by a time of delivery multiplier
Base price will step down over time as certain MW goals are met
Incentive Type: Rebate Program
Website: smud.orgIncentive Amount:
$300
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Arden-Arcade
Choosing a company is the first step toward a well-oiled and valuable solar energy system. Consider all of these aspects in your company search.
Licensing and Training
California requires solar companies to hold licenses for each type of equipment they install, which can include solar photovoltaic (PV) systems, water heaters, HVAC, pool heaters, and boilers. Contractors must complete a highly comprehensive educational series, gain four years of field experience, and pass written exams to earn licensure. Look for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar industry's most reputed trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Arden-Arcade
Your photovoltaic panels' style will impact how much electricity you can generate. Monocrystalline panels are among the highest quality and perform the best but cost the most. Polycrystalline panels offer you a budget panel with a traditional design, but at the cost of less power generation. Thin-film panels are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
You can also add battery backups and electric vehicle (EV) chargers. These will increase your total installation cost, but they can boost your solar system's performance. Not every solar company offers these add-ons, so look for a provider that sells them if it's important for you.
Most Arden-Arcade homeowners opt for solar systems sized for five kilowatts (kW) of electrical capacity. These systems cost about $17,350 to set up, considering both parts and installation. You can find more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,224 |
| Solar Polycrystalline | $955 |
| Thin-Film | $558 |
| Solar Battery | $784 |
| Solar Home EV Charger | $2,938 |
Financing Solar Energy in Arden-Arcade
There are numerous ways to pay for new solar panels, and the right one will help you decrease overhead. A few of the most common options include power purchase agreements (PPAs), leases, loans, and cash payments. We advise making a cash payment or securing a solar loan for the highest return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also have full ownership of your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in installments while still enjoying energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) enables you to pay a monthly rate determined by the energy you use, as with an electric bill. We typically don’t recommend these two options because you won't own the panels and are disqualified from using solar incentives. Look for companies that offer several payment plans to find the right fit for your wallet.
The table below lists the average payback periods for different capacities of solar systems in Arden-Arcade.
You are eligible for a 26% federal solar tax credit for new solar energy devices until the year 2032. Local and state governments and utility companies might also offer rebates, discounts, and unique financing solutions that could save you more.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 1.4 years |
| 2 kW | 2.7 years |
| 5 kW | 6.8 years |
| 10 kW | 13.7 years |
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Frequently Asked Questions About Solar in Arden-Arcade
How much energy and money could I save per year by switching to solar?
How prevalent is solar energy in Arden-Arcade?
Will solar panels raise my Arden-Arcade home value?
Is solar panel installation a fast job?
What size should my new Arden-Arcade solar system be?
What is the average payback period for Arden-Arcade solar panels?
How does "net metering" work, and do I need to participate?
Some states or utilities oblige you to join net metering when installing your solar system, while others give you a choice. Either way, once you join, you'll earn a bill credit or check for your excess generation at a retail or wholesale rate.
What are the signs I shouldn't use a particular solar company for my job?
- Pushy sales approach
- Not being straightforward about references, warranties, cost and credentials and training
- "One-size-fits-all" approach
- Rushing through the site assessment
- More mixed or negative reviews than positive ones
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
