Getting Solar in Los Angeles Part II

Part II of this article is a continuation of, Getting Solar in Los Angeles Part I. Those in the greater LA area want more renewable energy. Pasadena was chosen as a prime example since it’s one of the top locations of installing solar for businesses and residences alike.

Continuation of Part I

Homeowners 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. Pipes and ducts that are used to carry both solar energy and energy derived from other sources qualify for the exemption only to the extent of 75 percent of their full cash value. Likewise, 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.
 

There are several good net metering programs in Southern California. Basically, the net-metering program works by crediting the customer's next bill at retail rate for the power they produce but do not use. After 12-month cycle, the customer may opt to roll over credit indefinitely or to receive payment for credit at a rate equal to the 12-month average spot market price for the hours of 7 am to 5 pm for the year in which the surplus power was generated. (If the customer makes no affirmative decision, credit is granted to the utility with no compensation for the customer.)
 

Pasadena Water and Power Rebate Program

This is a nice net-metering rebate program where the utility pays residential customers a rebate equivalent to 9.6 cents per kWh. Systems must be connected to the grid to be eligible for the rebate. Since they charge 10.49 cents per kWh and they are rebating back almost as much, for power generated and not used. A lot of utilities do not have a program as robust.
The solar panel payback to yourself

If you take into account in the old monthly bill average of $150, and at least a 20 year lifespan on those solar panels and the cost of the whole system, it is estimated that the homeowner would be able to pay off those solar panels in approximately 4.6 years, with a payback rate of about 20.5 percent each year. This is without net-metering, or state rebate programs being included in the equation. Some companies that don’t use HahaSmart tell customers that their payback period is much longer, so be sure to find out if you are using a HahaSmart Certified Installer.
 

The Bottom line

After 20 years, a homeowner who installed solar panels on their home could save approximately $48,873 in electricity costs. After you factor in the tax credits, that payback is more than four times what the panels originally cost. 

Of course, all these prices and savings amounts can change slightly when different brands of solar panels and inverters are used, but the general point is that installing solar panels on a home in Pasadena still is less expensive than most new cars.

Those panels also increase the value of the home, they pay for themselves in less than five years, the whole solar panel system can save a homeowner almost $49,000 in power costs, and you can run the air conditioning endlessly.

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