If you reside in Los Angeles, then you must have noticed that more and more houses in the neighborhood have solar panels on their rooftops.
LA experiences a sunny climate, all the time, so they can take advantage of solar heat and at the same time avoid paying the consistently rising electricity prices. In addition, Los Angeles tax credits, incentives, and rebates are amazing. California makes use of numerous rebates and incentives to develop solar energy production in the country.
Homeowners can take advantage of these beneficial offers, while investing in a solar electricity system and cut their initial setup costs, significantly.
Reasons to adapt residential solar energy generation system in LA
- First setup cost of 5KW solar electricity system for your home costs around $20,000
- If you are eligible for LA rebate, then minus $4,000
- Solar tax credit applicable is 30%, so deduct $5,000
- The cost of solar panel installation in LA is within $11,000 range
- Return on your solar panel system investment can be expected in 9 years
- LA property price will increase, due to PV system and enjoy property tax exemption
The above examples give you clear estimation, but remember, every home and location differs.
You can discuss the cost and savings with local solar installer to get a customized quote, especially for your house.
Solar panel system installation process
A home visit allows the solar system installer to give you more detailed information. The team will take measurements, evaluate roof and home situation, and get a better idea to help you. Thus the installation team can draft accurate quotes of the system cost and potential savings. They take into consideration your existing utility bills and potential tax credits, incentives and rebates available.
If the deal is appropriate and the agreement gets signed, then the team starts the installation of solar panel system. It takes 3 to 4 days for concluding the installation task.
Net-metering program is beneficial
The cost of solar panel installment gets substantially reduced with rebate programs, incentives and tax breaks.
Fortunately, net-metering program is a feature that can be gained from installing solar panel system. You can opt to link your solar energy system with the utility grid and participate in net-metering program.
Extra energy that gets generated through your solar panels can be fed into the grid. Utility company pays full retail price for the amount of energy that is fed.
Financing options
Many people cannot afford installing the solar panel system because of its huge upfront cost. They can look into financial options like solar loan or solar lease.
Solar lease – You can attain solar panel system with 0 investments. A solar lease lasts for 25 years and after its expiry, you can buy it. However, you will not be eligible for tax credits or potential rebates, but can save on utility bills, after paying the lease premiums.
Solar loans – You own the solar power system, so you get to benefit from potential tax credits, rebates and more.
Solar power purchase agreement or PPA – Under a PPA agreement, developer makes use of your roof to install solar panel system. Technically, you do not own this system. It is the developer, who will benefit from potential incentives and tax credits. You will purchase it directly from owner at cheap rates.