We all appreciate the idea of saving money while saving the planet, so solar panels seem like a no-brainer for every household. But navigating through the jumble of upfront costs, incentives and even leasing options make many homeowners hesitant to jump on the photovoltaic bandwagon.
More than a half million homes in the United States are now solar-powered and most of those are in California. San Diego is a prime spot for solar energy with plenty of sunshine, solar-friendly regulations and high electricity prices. San Diego has one of the highest electric utility rates in the nation, with the average bill ranging from $100 to $130 a month. And those rates will go up. Switching to solar will reduce rates, whether buying or leasing solar panels. It’s just a matter of how much and how soon you will see the savings.
If you’re in the market for a new home, consider one with solar panels.
“Our homes are already among the most energy-efficient available today, and our solar program raises the bar even higher and makes our homes even more affordable,” said Craig LeMessurier of KB Home. “For example, we estimate that a 1.4-kilowatt, high-efficiency SunPower solar system, which is our smallest system, installed as a standard part of a 1,975-square-foot Energy-Star certified home would yield a monthly savings of $216 or about $25,900 over 10 years. We have seen numerous examples of homeowners experiencing monthly energy bills as low as a couple dollars; however, depending on the size of the system and their home, a buyer can reduce their energy bill by anywhere between 20 percent to 80 percent. Once a buyer understands these savings, they are more than ready to jump on board with solar. It’s more than a game changer; it’s a lifestyle changer.”
Installing a solar system costs anywhere from $20,000 to $40,000, depending on the size of the system. The cost is calculated in dollars per watt. Currently that cost is averaging $4 to $6 per watt, according to the Center for Sustainable Energy. A federal solar tax credit of 30 percent is still available through the end of the year to substantially lower the cost of a system. Numerous websites, such as solar-estimate.org, will help you determine the size of the system you need based upon your energy use.
Check with your lender for low-interest solar loans. With a 10- or 20-year loan, homeowners can see immediate savings over standard electric rates because the monthly loan payments can be lower than the electric bill.
Many solar companies are now offering a lease option. Under this plan the solar provider installs and owns the panels and wiring. The homeowner then pays the company a monthly fee, which is usually less than the electric bill. This is a carefree way to convert to solar with no upfront costs, immediate savings and maintenance included.
Solar customers are currently getting a full retail value credit from San Diego Gas & Electric for the extra power they use. Called Net Energy Metering, that arrangement helps homeowners eliminate their energy bills. But new legislation, through Assembly Bill 327, will change the rules, which will likely be less generous. The legislation will go into effect by July 2017 or once rooftop solar power hits 5 percent of the area’s peak demand. Most experts believe that will be before July 2017. Homeowners who install solar before the rules change will be guaranteed the more favorable rates for 20 years.
If you’re thinking about going solar, now is the time to make the switch.
If you have stories and feedback to share, please contact me at pat.setter@sduniontribune.com.
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