Benefits of Solar Energy
Solar energy offers several advantages that will enhance your home for years to come.
- Lower energy bills: Generating some or all of your own electricity will cut power costs long-term. Plus, some states provide net metering programs that make it possible for you to sell your extra energy back to the grid, generating additional credits toward your energy bill.
- Reduced carbon footprint: The sun is a highly abundant clean energy source, meaning you can reduce or eliminate your home's dependence on "traditional" sources.
- Better energy independence: Photovoltaic solar panel systems with battery storage systems function through power outages and emergencies, and you won't have to depend on your power company for your safety and comfort.
What Solar Incentives Are Available to Lake Forest Homeowners?
California homeowners who go solar could qualify for special financing, rebates, tax credits and reimbursements. Here are just a few of the local incentive programs.
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 Lake Forest
Choosing a company is the first step toward a well-oiled and cost-efficient solar system. Consider all of these aspects in your service provider search.
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, water heaters, boilers, and HVAC. Contractors must complete a highly comprehensive educational series, gain four years of field experience, and pass written exams to secure a license. Solar companies can also earn certificates from standards organizations and trade groups. The most respected ones in the industry come from the North American Board of Certified Energy Practitioners. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Lake Forest
Different solar panel types look and perform differently. Monocrystalline panels cost more than other options, but they generate the most power and generally have the highest quality. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels work well for small projects like RVs and sheds, but they're not ideal for larger installations due to their low performance.
Additional accessories, such as battery storage and electric vehicle (EV) chargers, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar providers offer these add-ons, so look for a contractor that installs them if it's crucial for you.
Most Lake Forest homeowners opt for solar systems rated for five kilowatts (kW) of electrical capacity. These systems cost about $17,350 to set up, considering both parts and installation. You can see more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,235 |
| Solar Polycrystalline | $963 |
| Thin-Film | $563 |
| Solar Battery | $790 |
| Solar Home EV Charger | $2,964 |
Financing Solar Energy in Lake Forest
Choosing the ideal financing plan will influence your overall solar system cost and expected savings. Common payment options include cash payments, leases, loans, and power purchase agreements. Though it requires a large up-front payment, cash is the most cost-effective choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the next best option. As with a car or home loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for cost-saving solar incentives, and depending on your lender, you could put as little as $0 down. Solar leases allow you to pay a monthly fee to rent your panels, while a PPA lets you pay a variable rate based on only the energy you use. We generally don't recommend these options since you will not have ownership of your system and are disqualified from solar incentives, but they might be suitable in specific circumstances. We advise working with a company that offers multiple financing options. Talk to each salesperson about what's available, and get more than one estimate for the best odds of staying within your spending limits.
The table below lists the average payback periods for different capacities of solar systems in Lake Forest.
The IRS allows you to claim a 26% federal solar tax credit on total system costs, so long as you purchase it before 2032. Municipal authorities and utilities might also offer their own rebates, financing programs, and incentives that could save you more money.
| 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 Lake Forest
How much energy and money could I save per year by switching to solar?
Is solar energy widely available in Lake Forest?
Will solar panels raise my Lake Forest home value?
Could I still use solar power if I live in a wooded, rainy, or dark area?
How long will an average solar system last?
How do I care for my new solar system?
What is "net metering," and how does it work?
Some states or energy providers require you to enroll in net metering when purchasing your solar system, while others give you a choice. Either way, once you participate, you'll earn a bill credit or check for your excess generation at a retail or wholesale rate.
What are some "red flags" to watch for as I research companies?
- Pushy sales approach
- Being evasive about references, training and credentials, warranties and cost
- Limited or no customization
- Rushing through the site assessment
- No business filing with your local secretary of state
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