Solar-Estimate.org says solar panels installed in LA typically pay for themselves in under 7 years, making them an investment worth considering. Especially considering after 7 years, your panels will generate free electricity for you for at least 18 years!
Why Solar?
- Lower your electric bill
- Lower total energy bill by charging your EV at home
- Improve your home’s resiliency during power outages. A home with photovoltaic (PV) panels can be set up to generate its own electricity.
- Improve your home’s green value. The resale value of a house increases when it has clean energy features like solar. (A few studies have shown solar installations increase a home’s resale value by up to $6,000 for each kilowatt of solar panels installed–or about 4.1% of a home’s value.)
How much does Solar cost?
The latest from the Center for Sustainable Energy: $15,000 to $25,000. However, scroll down for an innovative lease option from LADWP. (No home equity loan required!)
Is it worth it?
Your utility bill will be used to size your solar system, based on the power you tend to use now.
There are a number of factors to consider:
- If you are planning on switching any of your gas appliances for electric or charging an EV at home, do that first! Run those new machines on your LADWP bill for at least a few months. This ensures your future solar system is the right size for your higher electricity usage needs.
- Thinking about adding or upgrading air conditioning? Solar panels generate energy at exactly the time you need it, during the hottest part of the day.
- Thinking about an eco-upgrade to an electric heat pump for heating and cooling? Same logic applies.
- Have an EV? Adding solar further saves operating cost and improves your household’s carbon footprint.
- Think about your home’s sun exposure. Solar panels are most efficient when pointed south. So consider where on your roof you’d install the system.
Calculate the size solar system you’ll need
Here’s a handy calculator based on your past LADWP bills:
Federal Tax Deduction
Solar PV systems installed in 2020 and 2021 are eligible for a 26% tax credit. In August 2022, Congress passed an extension of the ITC, raising it to 30% for the installation of which was between 2022-2032. (Systems installed on or before December 31, 2019 were also eligible for a 30% tax credit.) It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it.
State of California
All solar users are guaranteed the ability to sell power back to the local grid through the State’s Net Metering policy. However, effective 05/15/2023, the California Public Utilities Commission has decreased the value of residential-generated solar power by 75%. The logic? They’re pushing for residential investment in solar battery storage systems. This article from CNET recaps the details and implications.
For low-income residents, there’s also the SASH program, which helps finance solar installation. (Applies only to those living in the “top 25 percent disadvantaged communities.”)
Affordable Solar Rooftop Installation (via Lease)
Sponsored by LADWP. (Details here.) Quick facts: LADWP will install rooftop solar if you agree to a 20-year lease. Depending on the size of your solar system, lease cost is a minimum of $240/mo to a maximum of $600/mo. LADWP’s program aims to save homeowners the large up-front cost of system installation. And in some cases, avoid forcing homeowners to access Home Equity $$ to get the project done.