Are solar panels worth the cost and maintenance? Here’s what to expect in California
Solar technology is being used to transition energy users to a more eco-friendly electricity system by 2035, according to the Office of Energy Efficiency and Renewable Energy.
While saving money is listed as one of the benefits of using solar energy to power your home, what can Californians expect to spend on the installation and upkeep?
Here’s what the California Public Utilities Commission and California Solar and Storage Association told us:
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How much do solar panels cost in California?
Bernadette Del Chiaro, the executive director for California Solar and Storage Association, said a solar panel system for a single family home typically costs $3.75 per watt.
“The average residential system is 7 kilowatts or 7,000 watts in size,” Del Chiaro wrote in an email to The Bee.
The average total for a residential solar system can cost around $26,250 plus a battery that can add around $15,000, Del Chiaro said.
How long does it take to pay off a solar panel system in California?
Terrie Prosper, a spokesperson for California Public Utilities Commission, said the commission’s new net billing tariff, which provides utility credits for solar energy, aids homeowners to pay off their systems in about nine years in eligible areas.
The eligible coverage areas include Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.
“Before purchasing solar panels, it is recommended that customers consider energy efficiency improvements,” Prosper wrote in an email to The Bee.
When purchasing solar panels, Prosper said an already energy-efficient house will not need as many solar panels to support its energy use.
For customers in Sacramento Municipal Utility District, Del Chiaro said it will take more than 12 to 15 years for the solar system to pay for itself.
How much money can Californians save with solar panels?
Homeowners save about 20% on their utility bills by going solar, according to Home Depot’s website.
However, some features can affect the overall cost and savings, including:
Region: The weather in your region can affect how efficient solar power systems are.
System size: Smaller systems can help reduce utility bills. Larger systems can power most of your home.
Number of panels and panel type: The size of your home can impact the number of solar panels and how efficient they are.
Roof position and panel location: Depending on how much sun exposure your roof gets, it can affect the panel’s efficiency.
Seasonal impact: The seasons can change how solar panel systems perform. Spring and summer are typically the time when homeowners can save the most, while the colder months are less efficient.
Del Chiaro said the amount homeowners save depends on where they live and if they add a battery.
While solar panels need sunshine to generate electricity, adding a battery can assist the system in any weather condition, according to the Office of Energy Efficiency and Renewable Energy website.
What kind of extra costs are there?
Prosper said solar panel system maintenance can include replacing inverters or cleaning the panels.
“Customers should discuss these needs with their installer, and it is recommended to include this information in their project planning and budget,” Prosper wrote.
According to Yelp’s website, solar panels should be cleaned annually.
“The average price to have solar panels professionally cleaned is $200,” the website states.
Some factors can affect the cost of solar panel cleaning in California, including size of the solar panel system, cleaning company and location of the solar panels, the website states.
The inverters, which convert direct current electricity from the solar panels into alternating current used inside the home, are warrantied for 10 years. After that time, Del Chiaro said they can cost around $5,000 to replace.
“All systems come with workmanship and product warranties that are 10-20 years long should something unexpected go wrong,” Del Chiaro wrote.
Can Californians receive financial assistance for going solar?
Unless you are considered low-income with less than $40,000 a household, Del Chiaro said the only incentive available for California residents is the federal tax credit which subtracts 30% off the cost of the system.
California residents who switch to solar energy are eligible for a tax credit that can be claimed on their income taxes during the year the system is completely installed, according to the Office of Energy Efficiency and Renewable Energy.
The following expenses are included when filing the tax credit:
Solar panels or solar photovoltaic cells
Contractor labor costs and their fees
System equipment such as wiring
Energy storage devices that have a capacity of 3 kilowatt-hours or more
Sales taxes on eligible expenses
In 2022, Congress raised the income tax credit to 30% for solar installation until 2032. It will decrease to 26% for 2033 and to 22% for 2034.
The tax credit will expire in 2035 unless Congress renews it, the office’s website states.
“Another way to look at it, is the federal tax credit essentially covers the cost of adding one battery to your solar system,” Del Chiaro said.
For low income households, California’s Low-Income Weatherization Program provides solar photovoltaic systems and energy efficiency upgrades at no cost.
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