Solar System

According to Forbes, an 8Kw system cost between $29,200 - $36,000 before tax incentives of 26% in California. The final cost depend on panel types, racking materials, kw size, Inverter type and installation accessibility. The most affordable system can be >$22K after tax incentives and reduce a $250/M utility bill by as much as 97%. Estimated ROI is 5-7 years depending on increase rates and finance interest if applicable. 

Utility companies charge you via a Tier system.

• Los Angeles Department of Water and Power (LADWP)
• Pacific Gas & Electric (PGE)
• Southern California Edison (SCE)

Back in 2005, Congress passed the Energy Policy Act, granting Americans a 30% Federal Tax Credit when they switched to solar power. This means that 30% of the total cost of a solar upgrade to your home is taken out of your taxable income, making it more cost-effective to switch to solar. The tax credit has been decreasing since and plan to expire in the near future. 

The ITC can be applied to your federal income tax liability and can be rolled over for up to five years.

Net energy metering (NEM) is an agreement you enter with a utility company. This agreement allows the utility company to track any excess energy generated by your solar panels and sends that energy back into the local power grid. The utility company takes the metered amount of excess energy and reduces your energy bill based on that amount. Your bill will reflect a monthly minimum delivery charge. 

Understanding Net Energy Metering & your bill with PGE & SCE

In general, a solar system helps increase your property’s value. According to a recent study, the value of California homes can increase by more than $5,900 for each kilowatt of solar capacity.  

It's common that unlicensed contractors wont offer a valid insurance. Cutting corners like this allows them to offer lower prices, but it presents a big risk for homeowners. If a contractor doesn't have the proper insurance, the homeowner can be liable for costs related to an accidental property damage and more.