Benefits of Solar Energy
Solar energy offers multiple advantages that will enhance your home for years to come.
- Reduced carbon footprint: Using clean solar power means you're less dependent on fossil fuels, which emit harmful greenhouse gasses.
- Better energy independence: Adding a battery storage system lets you have trustworthy energy during grid outages and storms.
- Lowered energy bills: You can avoid the added cost of grid-tied power by producing some electricity right where you use it. Plus, many states offer net metering which can allow you to sell your unused energy back to help pay for your energy bill.
What Solar Incentives Are Available to Salinas Homeowners?
Governments and power companies often incentivize homeowners for going solar. Here are some of the rebates, tax credits 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 Salinas
The more informed your company investigation is, the better your solar panels will ultimately perform. Make your choice based on the following key factors.
Licensing and Training
California requires solar companies to hold licenses for each type of equipment they install, which can include solar HVAC, boilers, water heaters, pool heaters, and photovoltaic (PV) systems. Contractors must take a highly comprehensive educational series, gain four years of experience as an apprentice or journeyman, and pass written exams to secure a license. Solar providers can also pursue certificates from trade groups and standards organizations. The most prestigious 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 Salinas
Your solar modules' model will influence how much energy you can produce. 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.
Additional components, such as battery storage and electric vehicle (EV) chargers, will raise your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar companies offer these optional components, so look for a company that sells them if it's crucial for you.
Generally speaking, it will cost about $17,350 for a five-kilowatt solar array in Salinas. This table displays more specific prices for different solar panel types and system components in your area.
Solar Panel Cost | Average Cost |
---|---|
Solar Monocrystalline | $1,170 |
Solar Polycrystalline | $913 |
Thin-Film | $534 |
Solar Battery | $749 |
Solar Home EV Charger | $2,809 |
Financing Solar Energy in Salinas
There are numerous ways to pay for a new solar system, and the right one will reduce your expenses. A few of the most common options include cash payments, power purchase agreements (PPAs), loans, and leases. Most solar experts recommend paying cash or using a solar loan. Cash payments demand a large up-front sum, but they save you from paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Much like a home or auto loan, you'll pay a set monthly rate with as little as $0 down. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate based only on the energy you use, akin to an electric bill. We typically don’t recommend these two options because you won't own the system and are disqualified from using solar incentives. We advise working with an installer that offers multiple financing options. Ask each consultant 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 Salinas.
A 26% federal solar tax credit applies to new home solar systems purchased through 2032. Additional incentives may be available through city and state 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 Salinas
How much energy and money could I save per year by switching to solar?
How prevalent is solar energy in Salinas?
Will a solar PV system improve my Salinas home worth?
What if I live in a rainy or heavily-wooded
How long does the photovoltaic installation process last?
How long does it take to pay back a solar loan in Salinas?
How does "net metering" work, and do I need to participate?
Some states or power companies oblige you to join net metering when purchasing your solar system, while others give you a choice. Either way, once you sign up, you'll receive a check or bill credit 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
- Not being straightforward about warranties, cost, training and credentials and references
- Inflexible options
- Not thoroughly inspecting your site
- Limited online information
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