California electricity prices average $0.19/kWh, well above the national average of $0.14/kWh. This may help explain why California has the second-lowest per capita residential energy consumption in the country.
In 2018 renewables accounted for nearly half of in-state power generation. While California does need to import one third of all the electricity consumed in the state, about half of that is from renewables. California leads in automotive greening - in 2019 a quarter of all electric vehicle charging stations were located in the state. Perhaps most importantly, as of 2020 California requires solar PV installs on all new homes.
The average cost of a 5kW (equivalent to saving almost 100 trees a year) solar system starts around $16,000. Before any incentives, in the first year you’d save about $1,200, compared to if you had been paying the normal rates for the energy you used. These savings can continue for well over 25 years, improving with inflation.
We're proud to have sold fifteen hundred solar power systems since 2016 in California. In September 1, 2019 we acquired California-based Real Goods, known for selling the first retail solar panel in the US back in 1978. Real Goods moved to a new warehouse in Ukiah California, and has experienced rapid growth since. Learn more about them here.
This depends on may factors such as your system size, power output, and financing. Here are the main ways you can finance your home solar power system, and the kinds of returns you may expect to see:
From our example above, the homeowner purchased a 5kW system to offset their energy bill. Overhead cost was $16,640, with a significant proportion returned in the first year through incentives, rebates, and savings, then paying itself in full over 6 years.
Most solar power systems have a warranty lifetime of 25 years.In that time, between incentives and paying lower rates you could make a profit of around $45,000 - more than twice the up-front cost of the system! Even with occasional maintenance or part replacement, that is a massive savings. Solar panel power output falls on average 0.8% per year, so with a little TLC and load management you can extend the life of your system well beyond the warranty’s expiration date, continuing to save indefinitely.
Whether or not you can afford the up-front cost of the install, you may want to consider a Home Equity Line of Credit (HELOC). With equity in your home, or good credit, you may qualify for a 15-year solar HELOC with fixed rate of 4% or lower.
Starting with that same 5kW system costing $16,640 but with zero up-front cost, accounting for incentives, credits, rebates, and annual energy savings starting around $1,200, you could see a revenue surplus of about $4,300 at the end of the first year.
In the first fifteen years, while paying off the loan, you could expect to make only $4 per month as your energy savings slightly outpace the loan payments. Once the loan is paid off, you can expect to save about $1,200 a year. Over 25 years you could expect to make about $39,000.
Data from DSIRE. For more info visit: https://www.dsireusa.org/
Name | Implementing Sector | Program Type | Administrator | DSIRE ID |
---|---|---|---|---|
City of Davis - Green Power Purchasing | Local | Green Power Purchasing | 122 | |
Small Business Energy Loan Program | State | Loan Program | California Energy Commission | 126 |
City of Los Angeles - Zoning Code | Local | Solar/Wind Access Policy | 253 | |
City of Sacramento - Zoning and Subdivision Regulations | Local | Solar/Wind Access Policy | 255 | |
City of San Diego - Planned Development Regulations | Local | Solar/Wind Access Policy | 258 | |
Public Benefits Funds for Renewables and Efficiency | State | Public Benefits Fund | 407 | |
Palo Alto - Solar Access | Local | Solar/Wind Access Policy | 445 | |
Los Angeles - Contractor Licensing | Utility | Solar/Wind Contractor Licensing | 472 | |
Property Tax Exclusion for Solar Energy Systems | State | Property Tax Incentive | California State Board of Equalization | 558 |
Tax Deduction for Interest on Loans for Energy Efficiency | State | Personal Tax Deduction | California Franchise Tax Board | 657 |
Tax Rate on Ethanol or Methanol | State | Corporate Tax Exemption | California Franchise Tax Board | 890 |
City of San Francisco - Solar Program | Local | Green Power Purchasing | 1039 | |
City of Santa Cruz - Solar Access Ordinance | Local | Solar/Wind Access Policy | 1107 | |
Santa Cruz County - Solar Access Protection | Local | Solar/Wind Access Policy | 1113 | |
Marin County - Solar Access Code | Local | Solar/Wind Access Policy | 1114 | |
City of Palo Alto Utilities - Renewable Energy Credit Purchase Program | Utility | Performance-Based Incentive | 2873 | |
Local Option - Municipal Energy Districts | State | PACE Financing | 3526 | |
Local Option - Municipal Energy Districts | State | PACE Financing | California Energy Commission | 3527 |
County Wind Ordinance Standards | State | Solar/Wind Permitting Standards | 3729 | |
City of Los Angeles - Green Building Retrofit Requirement | Local | Energy Standards for Public Buildings | 4708 | |
LADWP - Net Metering | Utility | Net Metering | 4855 | |
Orange County - Development Standards for Small Wind Energy Systems | Local | Solar/Wind Permitting Standards | 4924 | |
Riverside County - Sustainable Building Policy | Local | Energy Standards for Public Buildings | 4934 | |
CaliforniaFIRST | State | PACE Financing | Renewable Funding | 5309 |
Statewide Solar Permitting Standards | State | Solar/Wind Permitting Standards | 5315 | |
Partial Sales and Use Tax Exemption for Agricultural Solar Power Facilities | State | Sales Tax Incentive | California State Board of Equalization | 5351 |
LADWP - Feed-in Tariff (FiT) Program | Utility | Performance-Based Incentive | 5365 | |
Burbank Water and Power - Solar Water Heater Rebate Program | Utility | Rebate Program | 5428 | |
PG&E - Non-Residential Energy Efficiency Financing Program | Utility | Loan Program | 5620 | |
City of Lancaster - Mandatory Solar Requirement for New Homes | Local | Building Energy Code | 5624 | |
City of Sebastopol - Mandatory Solar Requirement for Residential and Commercial Buildings | Local | Building Energy Code | 5625 | |
Renewable Market Adjusting Tariff (ReMAT) | State | Feed-in Tariff | 5665 | |
LADWP - Feed-in Tariff (FiT) Program | Utility | Feed-in Tariff | 5685 | |
City of Palo Alto Utilities - PV Partners Program | Utility | Rebate Program | 5788 | |
Lodi Electric Utility - Commercial and Industrial Energy Efficiency Loan Program | Utility | Loan Program | 5854 | |
San Bernardino County – Accessory Wind Energy System Permit | State | Solar/Wind Permitting Standards | 5899 | |
San Bernardino County – Accessory Wind Energy System Permit | Local | Solar/Wind Permitting Standards | 5901 | |
Los Angeles County - WECS-N and Temp Met Towers | Local | Solar/Wind Permitting Standards | 5904 | |
San Bernardino County - Solar Energy Development Standards | Local | Solar/Wind Permitting Standards | 5905 | |
City of San Francisco - Green Building Requirements for City Buildings | Local | Energy Standards for Public Buildings | Municipal Green Building Task Force | 5906 |
City of Long Beach - Green Building Policy for Municipal Buildings | Local | Energy Standards for Public Buildings | 5907 | |
City of Oakland - Green Building Policies and Requirements | Local | Building Energy Code | City of Oakland Planning and Building | 5908 |
Anaheim Public Utilities - Comprehensive Energy Audit | Utility | Energy Analysis | Anaheim Public Utilities | 14221 |
Anaheim Public Utilities - Customized Energy Incentives | Utility | Energy Analysis | Anaheim Public Utilities | 14222 |
Anaheim Public Utilities - Small Business Energy Management Assistance | Utility | Energy Analysis | 14234 | |
Burbank Water & Power - Business Bucks Program | Utility | Energy Analysis | Burbank Water and Power | 14247 |
California Center for Sustainable Energy - Energy Efficiency Programs | Non-Profit | Energy Analysis | California Center for Sustainable Energy | 14255 |
Glendale Water & Power - Business Energy Solutions (BES) | Utility | Energy Analysis | Glendale Water & Power | 14271 |
Los Angeles Department of Water and Power - Energy Load Monitoring (ELM) Program | Utility | Energy Analysis | Los Angeles Department of Water and Power | 14296 |
PG&E - Energy Training Center | Utility | Training and Information | Pacific Gas and Electric Company (PG&E) | 14321 |
PG&E - Food Service Technology Center | Utility | Energy Analysis | Pacific Gas and Electric Company (PG&E) | 14322 |
PG&E - Pacific Energy Center | Utility | Energy Analysis | 14325 | |
Sacramento Municipal Utility District - Savings by Design: New Construction and Major Remodel Projects | Utility | Energy Analysis | Sacramento Municipal Utility District | 14369 |
San Diego Gas & Electric - Business Energy Solutions Program | Utility | Energy Analysis | San Diego Gas & Electric | 14382 |
San Diego Gas & Electric - Premium Efficiency Cooling | Utility | Training and Information | San Diego Gas & Electric | 14400 |
San Diego Retrocommissioning Program - Retrocommissioning Program | Other | Energy Analysis | San Diego Retrocommissioning Program | 14402 |
San Francisco Department of the Environment - Energy Watch Commercial Program | Local | Energy Analysis | San Francisco Department of the Environment | 14403 |
Southern California Edison - Saving Solutions for Business | Utility | Energy Analysis | Southern California Edison | 14434 |
Modesto Irrigation District - Energy Survey | Utility | Energy Analysis | Modesto Irrigation District | 16033 |
Riverside Public Utilities - Energy Load Profiler | Utility | Energy Analysis | Riverside Public Utilities | 16054 |
San Diego Gas & Electric - Small Business Energy Efficiency Workshops | Utility | Training and Information | 16059 | |
Southern California Edison - SCE EnergyManager | Utility | Energy Analysis | Southern California Edison | 16065 |
SoCalGas - Energy-Efficiency Assessments for Industrial Customers | Utility | Energy Analysis | Southern California Gas Company | 16462 |
Glendale Water & Power - Smart Business AC Tune-up | Utility | Other | Glendale Water & Power | 16568 |
City of Palo Alto Utilities - Right Lights+ | Local | Energy Analysis | City of Palo Alto Utilities | 16580 |
City of Palo Alto Utilities - Solar Water Heating Program | Local | Other | City of Palo Alto Utilities | 16583 |
Berkeley Office of Energy and Sustainable Development - SmartSolar Program | Other | Energy Analysis | Berkeley Office of Energy and Sustainable Development | 17443 |
Berkeley Office of Energy and Sustainable Development - Commericial Solar Photovoltaic Permit Guide | Other | Training and Information | Berkeley Office of Energy and Sustainable Development | 17445 |
Berkeley Office of Energy and Sustainable Development - Solar Thermal Hot Water Installations | Other | Training and Information | Berkeley Office of Energy and Sustainable Development | 17446 |
PG&E - InterAct Energy Management Tools | Utility | Energy Analysis | PG&E | 17506 |
Merced Irrigation District - eMeter Manager | Utility | Energy Analysis | Merced Irrigation District | 17507 |
U.S. Department of Energy - Industrial Assessment Center (IAC): San Diego State University | Federal | Energy Analysis | U.S. Department of Energy | 17597 |
U.S. Department of Energy - Industrial Assessment Center (IAC): San Francisco State University | Federal | Energy Analysis | U.S. Department of Energy | 17598 |
Southwest Gas Corporation - Industrial Energy Assessments | Other | Energy Analysis | Southwest Gas Corp., California Div. | 17886 |
Palo Alto Utilities Dept. - Right Lights+ Program | Other | Energy Analysis | Palo Alto Utilities Dept. | 18115 |
Sacramento Municipal Utility District - Online Energy Audit for Businesses | Utility | Energy Analysis | Sacramento Municipal Utility District | 18927 |
Anza Electric Cooperative - Free Energy Audit | Utility | Energy Analysis | Anza Electric Cooperative, Inc. | 19037 |
Los Angeles Department of Water and Power - RCx Express program | Utility | Energy Analysis | Los Angeles Department of Water and Power | 19331 |
Sacramento Municipal Utility District - Learn Energy Efficiency | Utility | Training and Information | Sacramento Municipal Utility District | 19489 |
Silicon Valley Power - Energy Design Assistance | Utility | Energy Analysis | Silicon Valley Power | 20400 |
Roseville Electric - Facility Assessment Wizard | Utility | Energy Analysis | Roseville Electric | 20577 |
Pasadena Water and Power - Green Power Program | Utility | Other | Pasadena Water and Power | 20946 |
Southwest Gas Corporation - Industrial Services | Utility | Energy Analysis | Southwest Gas Corp., Arizona Div. | 21558 |
Pacific Gas and Electric Company (PG&E) - Savings by Industry | Utility | Training and Information | Pacific Gas and Electric Company (PG&E) | 21976 |
Sales and Use Tax Exemption for Electrical Power Generation and Storage Equipment | State | Sales Tax Incentive | 22047 | |
Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment | State | Sales Tax Incentive | California Department of Tax and Fee Administration | 22048 |
Burbank Water and Power - LEED Certification Incentive Program | Utility | Green Building Incentive | 22065 | |
Burbank Water and Power - LEED Certification Incentive Program | Utility | Rebate Program | Burbank Water and Power | 22066 |
Plumas-Sierra REC - Commercial and Irrigation Rebate Program | Utility | Rebate Program | Plumas-Sierra REC | 22067 |
energy storage | State | Corporate Tax Credit | 22069 | |
Redding Electric - Commercial Energy Efficiency Rebate Program | Utility | Rebate Program | Redding Electric Utility | 22070 |
Electrify Marin - Natural Gas Appliance Replacement Rebate Program | Local | Rebate Program | 22106 | |
Marin County Residential Rebate Program | State | Rebate Program | 22107 | |
Energy Storage Procurement Target | State | Energy Storage Target | California Public Utilities Commission | 22112 |