Benefits of Solar Energy
Solar energy has numerous advantages that will enhance your home for years to come.
- Reduced energy costs: Generating some or all of your own energy will cut power costs long-term. Plus, some states offer 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: Adopting solar is a surefire way to reduce your carbon footprint and home fossil fuel dependency.
- Better energy independence: Solar panel systems with energy storage systems operate through power outages and emergencies, and you won't have to rely on the power grid for your safety and well-being.
What Solar Incentives Are Available to Mission Viejo Homeowners?
Governments and utility companies often reward homeowners for embracing solar. Here are some of the tax credits, rebates, or other programs you could qualify for.
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 Mission Viejo
Choosing a company is the first step toward an effective and valuable solar energy system. Make your choice based on the following essential elements.
Licensing and Training
California requires solar companies to hold licenses for each type of equipment they install, which can include solar photovoltaic (PV) systems, HVAC, pool heaters, boilers, and water heaters. Contractors must take a highly comprehensive educational series, gain four years of field experience, and pass written exams to earn licensure. Solar providers can also obtain accreditations from standards organizations and trade groups. The most recognized ones in the industry come from the NABCEP. Most company websites will prominently display earned credentials, but you should also ask your estimator for more information.
Cost of Solar Panels in Mission Viejo
Your solar panels' style will impact how much electricity you can produce. Monocrystalline panels are among the highest quality and cost the most but perform the best. Polycrystalline panels generate less, but they're a great traditional option for low budgets. Thin-film panels have a low cost and are excellent for non-traditional roofs, but aren't recommended for large home installations.
You can also add electric vehicle (EV) chargers and battery backup systems. These will increase your total installation cost, but they can maximize your solar system's efficiency. Not every solar provider includes these extras, so look for a company that installs them if it's a priority for you.
A majority of Mission Viejo homeowners select solar systems designed for five kilowatts (kW) of electrical capacity. These systems cost about $17,350 to set up, considering both materials and labor. You can find 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 Mission Viejo
Choosing the right financing solution will affect your overall solar system cost and expected savings. Common payment options include cash payments, loans, leases, and power purchase agreements. Though it involves a large up-front payment, cash is the most affordable choice because it qualifies you for solar incentives and doesn't accrue interest. Solar loans are the next best option. As with a home or auto loan, you'll pay a monthly rate towards system ownership, including interest. You can still apply for money-saving solar incentives, and depending on your lender, you could put as little as $0 down. 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, like an electric bill. We usually don’t recommend these two choices because you won't own the solar system and are disqualified from using solar incentives. We recommend working with an installer that offers multiple financing options. Ask each representative about what's available, and get more than one estimate for the best odds of staying within your budget.
The table below lists the average payback periods for different capacities of solar systems in Mission Viejo.
A 26% federal solar tax credit applies to recently-purchased solar equipment purchased through 2032. Extra incentives may be available through local governments, usually in the form of rebates and special financing programs.
| 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 Mission Viejo
How much money could I save by going solar in Mission Viejo?
Is solar energy widely available in Mission Viejo?
Will solar panels improve my Mission Viejo home price?
What's a Mission Viejo solar panel's average lifespan?
Is solar panel installation a quick job?
What's the average solar system size in Mission Viejo?
What is "net metering," and how does it work?
Some states or energy providers oblige you to enroll in net metering when purchasing 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 wholesale or retail rate.
How are a solar lease and PPA different?
If you choose a lease, you'll make set payments each month.
With both leases and PPAs, you don't own your panels and lose eligibility for most incentives. Further, you'll have to "buy out" or transfer the contract if you sell your home during the term.
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