Benefits of Solar Energy
Solar energy offers multiple advantages. Let's look at a few of them.
- Lower utility costs: Generating some or all of your own energy will save you money on your electric bills long-term. Plus, some states offer net metering programs that enable you to sell your surplus energy back to the grid, generating additional credits toward your energy bill.
- Better energy independence: Solar energy can keep your home running through emergencies and blackouts, giving you additional security. You can use your solar energy anytime with an optional battery backup system.
- Reduced carbon footprint: Utilizing solar is a surefire way to minimize your carbon footprint and home fossil fuel dependency.
What Solar Incentives Are Available to Santa Monica Homeowners?
California homeowners who decide on solar could qualify for special financing, tax credits, reimbursements and rebates. Here are just a few of the area's 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: 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: 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 Monica
The cost and efficacy of solar panels often hinge on the provider that installed them. Make your choice based on the following crucial aspects.
Licensing and Training
California requires solar companies to hold licenses for each type of equipment they install, which can include solar pool heaters, HVAC, photovoltaic (PV) systems, water heaters, and boilers. 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 pursue certifications from trade groups and standards organizations. 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 Santa Monica
Your solar modules' type will impact how much power you can produce. Monocrystalline panels are among the highest quality and cost the most but perform the best. 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.
If you need to charge an electric car or use your solar power in inclement weather, you can pay extra for add-ons. By choosing the right components, you can make your system more efficient and user-friendly. Not all solar companies provide these optional components, so look for a contractor that installs them if it's essential for you.
Most Santa Monica homeowners choose solar systems designed for five kilowatts (kW) of electrical capacity. These systems cost about $17,350 to set up, considering both parts and installation. You can find more specific solar cost information in the table.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,194 |
| Solar Polycrystalline | $931 |
| Thin-Film | $544 |
| Solar Battery | $764 |
| Solar Home EV Charger | $2,865 |
Financing Solar Energy in Santa Monica
Solar contractors use multiple different financing options to lower your costs and increase your savings. Though some providers offer unique payment plans, the most common are solar loans, cash payments, power purchase agreements (PPAs) and solar leases. We advise making a cash payment or securing a solar loan for the best return on investment (ROI). Cash payments require a hefty sum up-front, but you’ll pay the least long-term by avoiding interest. You’ll also own your system and can apply for solar panel incentives to reduce your total costs. Solar loans are another solid option if you don’t want to make a big initial investment. You can pay for your system in monthly installments while still enjoying energy bill savings and solar incentives. However, you’ll spend more in total due to accruing interest. Solar leases involve paying a set monthly rate to use rooftop panels. A PPA (Power Purchase Agreement) lets you pay a monthly rate determined by the energy you use, similar to an electric bill. We typically don’t recommend these two choices because you won't own the panels and are disqualified from using solar incentives. Ask each business you're evaluating about the financing options it offers. A staff member can help you determine the best option for your financial situation.
The table below lists the average payback periods for different capacities of solar systems in Santa Monica.
The IRS allows you to claim a 26% federal tax credit for solar panels on the full cost of the solar system, so long as you purchase it before 2032. City and state governments 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 |
Ready to Get a Quote on Your Solar Project?
Please enter a valid 5-digit zip code!
Frequently Asked Questions About Solar in Santa Monica
How much energy and money could I save per year by switching to solar?
Is solar energy readily available in Santa Monica?
Will a solar PV system raise my Santa Monica home price?
What can I do to predict my home's solar potential?
What is a Santa Monica solar panel's average lifespan?
How do I care for my new solar system?
How are a solar lease and PPA different?
If you choose a lease, you'll make fixed payments each month.
With both leases and PPAs, you do not 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.
Should I get quotes from multiple Santa Monica solar companies?
To share feedback or ask a question about this article, send a note to our Reviews Team at reviewsteam@thisoldhousereviews.com.
