Understanding solar panel costs in sunny San Diego

Be mindful that majority of the time averages and estimations are applied to the average monthly bill in an area. Individual results vary from county to county. In San Diego, we chose a residence modest in size. It’s building codes for energy efficiency are up to date.

This home has no air conditioning, hardly apply the heater, and the family of three open windows and use the ocean air to keep the home cool when it gets warm.Because this family lives in a temperate area, and they have a modern home and watch their power consumption, their electric bill averages $100 a month. If we enter in the address and the $100 a month electric bill into our HahaSmart Price Checker Tool, it recommends a 3.3kW system for the home. The home is not covered by trees, and there is plenty of roof space. The panels on the roof are facing east to capture the sun all day long as it passes over San Diego, giving them more than enough power for the family.

Power in California is more expensive than in other parts of the country, so even though the solar panel system is smaller, the payback is still quite fast. Let’s take a closer look.

Bottom line costs and credit applied 

We add the product cost of $5,731 and the installation cost of $4,587, and we get $10,126 before local, state, and federal tax incentive programs. The cost per watt for this system is $3.06 per Watt. We know that everyone is able to take 30 percent of the total installation cost and deduct it in their income taxes If we factor in the tax credit, from the system, the homeowner is allowed to write off $3,038. If we subtract this from the overall cost, it drops the cost down to $7,088.
 

The SDGE net-metering program works like this. As a customer generates power during the day, and power they are not using is sent back to the utility and the homeowner is credited that amount. During the evening, when the panels are dormant, the customer is credited the amount of power they generate during the day. At the end of each month, if the customer generates more power than they use, the amount is carried over to the next month as a credit. After a 12-month cycle, the customer may opt to roll over credit indefinitely or to receive a check for the power they didn’t use. 
 

Property tax exclusion

California also helps out homeowners who want to go solar. They are able to deduct either 75 or 100 percent of a solar panel system from state property taxes. They can deduct 100 percent of the panels, storage devices, power conditioning equipment, transfer equipment, and parts. They are only able to deduct 75 percent of the pipes and ducts for the solar system. Dual-use equipment for solar-electric systems qualifies for the exclusion only to the extent of 75 percent of its value. Here is a link to the State Board of Equalization to explain it in more detail. After 20 years, a homeowner who installed solar panels on their home could save approximately $31,344 in electricity costs. The initial payback of the system is 5.4 years, and overall the family can save over four times what the panels originally cost.

All these prices and savings amounts can change slightly when different brands of solar panels and inverters are used, but the general point is solar power is less expensive than most new cars. Those panels also increase the value of the home, they pay for themselves in a little more than five years, the whole solar panel system can save a homeowner $31,000 in power cost. For more info, click here.

HahaSmart Blog - More Solar Tips and Guide
HahaSmart News - Stay Informed
Your Solar Incentives - See Credits and Incentives in Your Area
Check Your Home's Solar Price - See How Much You Save
Register Now - Unlock The Lowest Solar Prices in Your Area