Benefits of Solar Energy
Solar energy offers multiple benefits. Let's look at a few of them.
- Reduced carbon footprint: Solar is a highly abundant clean energy source, meaning you can reduce or eliminate your home's dependence on non-renewable sources.
- Reduced energy costs: Sourcing some or all of your own power will spend less on electricity long-term. Plus, some states offer net metering programs that allow you to sell your unused energy back to the grid, generating extra credits toward your energy bill.
- Better energy independence: Adding a battery backup or storage system lets you have dependable energy during storms and grid outages.
What Solar Incentives Are Available to Encinitas Homeowners?
California homeowners who upgrade to solar could qualify for rebates, tax credits, reimbursements and special financing. Here are just a few of the local incentive offerings.
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: Rebate Program
Website: selfgenca.comIncentive Amount:
For projects 30 kW or larger, 50% of incentive will be received up-front; 50% will be received based on actual kWh production over the first 5 years. For projects under 30kW, 100% of the incentive will be paid up front.
Incentives will step down over time. See below for incentive amounts.
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: gosolarcalifornia.ca.govIncentive Amount:
Step 1 Incentive Rates (contact utility to determine current incentive levels):
Single Family Residential Incentives:
Systems that displace natural gas: $29.85 per estimated therm displaced
Systems that displace electricity or propane: Funding has been exhausted
Commercial/Multifamily Incentives:
Systems that displace natural gas: $20.19 per estimated therm displaced
Systems that displace electricity or propane: $0.42 per estimated kWh displaced *** Note, funding has been exhausted in this category for SCE and PG&E
Solar Pool heating: $5.00 per estimated therm displaced
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 Encinitas
The cost and effectiveness of solar panels often hinge on the provider that mounted them. Here are some important factors to keep in mind while shopping for a solar provider.
Licensing and Training
California requires solar companies to hold licenses for each type of equipment they install, which can include solar pool heaters, photovoltaic (PV) systems, boilers, HVAC, and water heaters. 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 sector's most credible trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Encinitas
The kind of solar panels you purchase determines how much power you can generate. Monocrystalline panels and high-quality and give you the best performance but cost more upfront. Polycrystalline panels produce less power, but they're worth it if you want a traditional panel style without the high cost. Thin-film panels aren't recommended for large residential installations, but they are ideal for small projects like converting RVs and sheds.
If you need to charge an electric car or use your solar power in dark weather, you can pay extra for add-ons. By choosing the right components, you can make your panel array more efficient and convenient to use. Not every solar contractor offers these optional components, so look for a contractor that sells them if it's important for you.
You can expect to pay about $17,350 on average for a five-kilowatt solar energy system in Encinitas. Use the table in this section to get an idea of what amount Encinitas solar companies might quote for your specific solar system's price.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,226 |
Solar Polycrystalline | $956 |
Thin-Film | $559 |
Solar Battery | $784 |
Solar Home EV Charger | $2,942 |
Financing Solar Energy in Encinitas
Choosing the right financing solution will affect your overall solar system cost and potential savings. Common payment options include leases, loans, cash payments, and power purchase agreements. We suggest paying with cash or using 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 own your system and can apply for solar panel incentives to minimize 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 monthly installments while still benefiting from energy bill savings and solar incentives. However, you’ll pay more in total due to accruing interest. Solar leases allow you to pay a monthly fee to rent your panels, while a power purchase agreement lets you pay a variable rate based on only the energy you use. We generally advise against these options since you won't own your system and are disqualified from solar incentives, but they might be appropriate in particular circumstances. Look for providers that offer multiple payment plans to find the right fit for your financial needs.
The table below lists the average payback periods for different capacities of solar systems in Encinitas.
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 Encinitas
How much money could I save by going solar in Encinitas?
Is solar energy readily available in Encinitas?
Will a solar PV system raise my Encinitas home price?
What can I do to calculate my home's solar viability?
What care do my solar panels need, and how frequently do they need it?
What's the average solar system size in Encinitas?
How are a solar lease and PPA different?
You don't own the panels with either option, though you can choose to opt out of the contract for a fee.
How are traditional solar loans and PPAs different?
In contrast, solar loans can come from local banks, the government, installer and specialty lenders. You'll need to pass a credit check to qualify for most of them. While the upfront costs are larger, and you'll be responsible for taking care of the system, you'll also have complete ownership and can apply for many more financial rewards.
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