Benefits of Solar Energy
Solar energy comes with multiple benefits. Here are some highlights.
- Reduced carbon footprint: Utilizing solar is a surefire way to decrease your carbon footprint and home fossil fuel dependency.
- Better energy independence: Solar systems with battery storage work through blackouts and emergencies, and you won't have to rely on the power grid for your safety and comfort.
- Lowered energy bills: You can avoid the expensive cost of grid-tied power by producing some electricity right where you use it.
What Solar Incentives Are Available to Pasadena Homeowners?
The state of California offers a number of solar incentives to help offset your solar system costs. Check out a breakdown of relevant solar programs where you live.
Incentive Type: Property Tax IncentiveWebsite: boe.ca.gov
100% of system value; 75% of system value exemption for dual-use equipment
Incentive Type: PACE FinancingWebsite: wrcog.us
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 property The 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 Type: Rebate ProgramWebsite: selfgenca.com
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 TariffWebsite: ladwp.com
$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 ProgramWebsite: gosolarcalifornia.ca.gov
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
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 CreditWebsite: ecowatch.com
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 Pasadena
The cost and effectiveness of solar panels often rely on the provider that installed them. Make your choice based on the following essential elements.
Different solar panel types look and perform differently. Monocrystalline panels give you the best performance but cost more upfront. Polycrystalline panels provide a lower price point but produce less power. Thin-film panels aren't recommended for large residential installations, but they are ideal for small projects like converting RVs and sheds.
Additional accessories, such as electric vehicle (EV) chargers and battery storage, will add to your overall investment. These will increase your total project price, but they can maximize your solar system's performance. Not every solar contractor offers these extras, so look for a contractor that has them if it's important for you.
Licensing and Training
California requires solar companies to hold licenses for each type of equipment they install, which can include solar water heaters, HVAC, pool heaters, boilers, and photovoltaic (PV) systems. Contractors must complete a highly comprehensive educational series, gain four years of field experience, and pass written exams to secure a license. You should also visit a company's website to learn about its private accreditations. Two of the most prestigious are the PV Installation Professional and Solar Heating Installer certificates, awarded by the North American Board of Certified Energy Practitioners (NABCEP). Some companies don't publish this information online, so you should also ask your estimator about them.
Choosing the correct financing option will impact your overall solar system cost and expected savings. A few of the most common options include leases, cash payments, power purchase agreements (PPAs), and loans. Though it involves 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 runner-up option. As with a car loan or mortgage, 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 involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) permits you to pay a monthly rate determined by the energy you use, similar to an electric bill. We generally don’t recommend these two choices because you won't own the system and cannot use solar incentives. Ask each company you're vetting about the financing options it offers. A staff member can help you determine the most suitable option for your financial situation.
Ready to Get a Quote on Your Solar Project?
Frequently Asked Questions About Solar in Pasadena
How much money could I save by going solar in Pasadena?
How popular is solar energy in Pasadena?
Will a solar PV system improve my Pasadena home worth?
How long does it take to pay back a solar loan in Pasadena?
Is solar installation a fast job?
What's the average solar system size in Pasadena?
How can I enhance my solar panels' performance?
- upgrade to a more efficient inverter trim or cut down trees in the way of your panels ,
- use energy-efficient appliances ,
- optimize the panels' position with your solar installer ,
- regularly clean your solar panels
What's the difference between a PPA and a solar lease?
You don't own the panels with either option, though you can choose to "buy out" of the contract for a fee.
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