California Will Need Solar On New Homes In 2020. Your State Should, Too

As we know, The California Energy Commission (CEC) voted unanimously to approve a measure requiring homes built after the start of 2020 to have solar panels.

There are a number of various other details to be combed through, but the rules set forth are pretty clear about minimum requirements, and numbers from the CEC’s own analysis. The work of other solar industry and financial estimates can also provide us with a measuring stick by which to judge the potential impact of the program. The demand of solar Santa Clarita has been in a height not. A lot of people are now opting solar power because of unconditional benefits they can enjoy.

How can the new solar home rules save Californians money?

The most common way solar saves homeowner’s money is by offsetting their electricity costs. Let us say, the 3,800 kWh from our example system above might have cost the homeowner $760 in 2020 if they didn’t have solar. But yes, it’s for sure, the panels cost money too, and the savings will be offset by an increase in the monthly mortgage payment.

Furthermore, the CEC estimates that solar power installer under the new rules will save a homeowner $80 per month in electricity costs while adding just $40 per month to the mortgage payment. Those depicted numbers are based on an estimated cost of $3.17 per installed watt of solar, but there are reasons to believe the actual costs will be lower, and the savings higher.

Reasons Why the CEC rules will dramatically lower the cost of solar in California?

The reason solar Santa Clarita installed by professionals is priced as it has very little to do with the cost of the panels themselves. According to the study of National Renewable Energy Laboratory, the average cost of installing solar in California in 2017 was $2.90/watt.  Also, of it, hardware costs account for only about 30% of the final price. Check it out:

Other costs linked with the final retail price include the so-called “soft costs” of marketing, overhead, permitting, labor, sales tax, and profit to the installer. As you can see in the above picture, these costs add up to about half the cost of the system!

And don’t ignore, the cost of purchasing solar equipment keeps falling as manufacturing volume increases. The analysts and the researchers at PV Magazine envision a final cost to the customer of just $1.12/watt as of 2020, with further reductions almost certain from there. While that’s a pretty rosy picture, it probably won’t be too far off.

Thus, for example, the cost for a 2.69-kW system at $1.12/watt, let’s say might be just over $3,000, which would equal $16/month in the additional monthly payment on a 30-year mortgage, while saving the homeowner the same $63/month. And on top of that are the incentives.

The year 2020 is the first of the ITC’s step-down, a multi-year reduction in the percentage of the final cost of installing solar eligible for the tax credit. But yes, 26% of installed costs can still represent a huge saving.

Contact “Horizon Solar Power” for any kind of solar power purchase agreement, from solar panel design to solar installation and monitoring, we take care of everything from start to finish. We are a preferred and one of the most reliable solar power installers in California and nearby areas. Feel free to explore our cost-effective solar power offerings.