Benefits of Solar Energy
Solar energy offers multiple advantages that will enhance your home for years to come.
- Lower utility costs: Sourcing some or all of your own power will spend less on electricity long-term. Plus, some states offer net metering programs that make it possible for you to sell your surplus energy back to the grid, generating extra credits toward your energy bill.
- Better energy independence: Adding a solar battery storage system lets you have reliable energy during grid outages and storms.
- Reduced carbon footprint: Utilizing solar is a surefire way to decrease your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Santa Clara Homeowners?
Governments and utilities 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: Leasing Program
Website: santaclaraca.govIncentive 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 Santa Clara
The price and effectiveness of solar panels often hinge on which company installed them. 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 water heaters, pool heaters, boilers, photovoltaic (PV) systems, and HVAC. Contractors must take a highly comprehensive educational series, gain four years of field experience, and pass written exams to secure a license. Solar providers can also earn certificates from standards organizations and trade groups. The top 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 Santa Clara
Your solar modules' model will impact how much power you can generate. 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 are excellent for non-traditional roof shapes and cost the least, but don't work well for large residential installations.
If you need to charge an electric car or use your solar power in dark weather, you can pay extra for accessories. By selecting the right components, you can make your system more efficient and user-friendly. Not every solar contractor provides these optional components, so look for a provider that installs them if it's important for you.
You can plan to spend about $17,350 on average for a five-kilowatt solar energy system in Santa Clara. Use the table in this section to get an idea of how much Santa Clara solar companies might quote for your specific solar system's price.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,961 |
| Solar Polycrystalline | $1,530 |
| Thin-Film | $894 |
| Solar Battery | $1,255 |
| Solar Home EV Charger | $4,707 |
Financing Solar Energy in Santa Clara
Choosing the right financing solution will affect your overall solar system cost and expected savings. Common payment options include power purchase agreements, loans, cash payments, and leases. Most solar experts recommend a cash payment or using a solar loan. Cash payments require a large up-front sum, but they help you avoid 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. 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 usually don’t recommend these two options because you won't own the panels and are disqualified from using solar incentives. Look for installers that offer several payment plans to find the right fit for your wallet.
The table below lists the average payback periods for different capacities of solar systems in Santa Clara.
You are eligible for a 26% federal solar tax credit for new solar energy equipment until the year 2032. City and state officials and utility companies might also offer rebates, discounts, and dedicated financing plans 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 |
Ready to Get a Quote on Your Solar Project?
Please enter a valid 5-digit zip code!
Frequently Asked Questions About Solar in Santa Clara
How much money could I save by going solar in Santa Clara?
How prevalent is solar energy in Santa Clara?
Should I expect a property value increase after going solar?
How can I evaluate my home's solar potential?
How long does a common solar system last?
What size should my new Santa Clara solar system be?
What is "net metering," and how does it work?
What are some "red flags" to watch for as I research companies?
- Pressuring you into signing a contract
- Not being straightforward about training and credentials, warranties, references and cost
- "One-size-fits-all" approach
- Superficial, rushed site evaluation
- More mixed or negative reviews than positive ones
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
