California leads the nation in solar energy production by a wide margin, according to the Solar Energy Industries Association, or SEIA. There are obvious reasons why. They call it sunny California for a reason! Additionally, SunPower and other solar innovators began here. We also know that Californians are some of the most eco-conscious in the entire nation and have consistently used some of the least energy per capita. All of that is great, but the biggest reason you should switch to solar is money. Here are some of the ways you can save.
#1: Electricity is Expensive in California
Every day you use electricity. Whether it’s to turn on lights, cook food, run your air conditioner, or charge your electronic devices, electricity is vital to your family’s well-being. But all of that costs money! Every month you pay for all of that electricity, and it isn’t cheap in California.
Studies by the Energy Information Administration rank California as the 7th most expensive state for electricity. We pay nearly 60% more than the average American, and it’s only projected to increase in price! Depending on your utility provider, you may have noticed a sizable increase in prices over the last few years. All of the primary providers have increased since 2006. So, how does solar fix this?
#2: You’ll Use Less Electricity
With solar panels installed, you’ll be generating your own entirely green energy, so you won’t need to rely on the grid as much. In fact, by installing a battery backup, you can ensure that you have power even if there is an outage, which are becoming more frequent, especially during fire season. Some homeowners can even reach total self-sufficiency. All of that translates into much lower monthly bills that will only become a better deal as electricity costs rise in the future.
#3: Rebates and Incentives
California offers several incentives for switching to solar. The main one is the solar investment tax credit, which is a 30% tax credit. You can use this credit to take 30% of the cost of your solar installation and subtract that from your taxes this year. There is a limited time on this credit, so you need to act soon. In 2020, the credit will shrink to 26%. In 2021, you would only receive 22% for your tax credit, after which the credit will end for residential installations. Act now and make sure your installation falls under ITC guidelines, so you receive the full value. If your credit is for more than you owe on taxes, you can take it over multiple years.
There are other incentives offered by utility providers and local governments. Additionally, there are programs and incentives for solar installations for non-homeowners, businesses, and non-taxed entities such as churches. Make sure you do your research so that you can take advantage of these great programs.
#4: Add to the Value of Your Home
A study in 2016 concluded that the average solar panel installation increased the property value of a home by $16,995. Solar is an investment in your future. Not only are you paying upfront for much cheaper monthly bills in the future, but you are also setting yourself up to get paid back if you sell your home. Most homebuyers won’t want to go through the process of installing themselves and will jump at the chance to buy a home that comes with solar already.
It’s clear that solar makes sense financially, but of course, solar allows homeowners to rely less on the grid and consume energy in an eco-friendly way.
At JP Electric & Solar, we install only the best SunPower panels and offer a variety of packages so you can choose what is best for your family. Give us a call at (559) 464-6048 or fill out an online contact form.