California Has Best Payback for Solar

Major Factors:

Good Solar Resource

• California is one of the sunniest places in the country
• Solar systems are high performing

High Cost of Electricity

• California has among highest rates of electricity in country
• Rates Steadily Increasing– average of 7-8% rate increase per year since 1970

Best Incentives for Solar in the Country

• State cash rebate covers ~ 25% of installed system cost
• Federal tax credit 30% of total installed system cost
• 5-Year Accelerated Depreciation

California Has The Best Solar Resource

California Has Expensive Electricity…  and it Keeps Going Up!

Average Annual Rate Increase of 7-8%

• One of the great pros of solar energy is the ability to harness electricity in remote locations that are not linked to a national grid. A prime example of this is in space, where satellites are powered by high efficiency solar cells.
• The installation of solar panels in remote locations is usually much more cost effective than laying the required high voltage wires.
• Solar energy can be very efficient in a large area of the globe, and new technologies allow for a more efficient energy production on overcast/dull days.

Hedge Against Rising Energy Cost with Solar

Projection based on system installed today, at current average electric rate of $0.15 per kWh, increasing 6% per year over the 30-year life of the system.

Reaping Energy Savings with Solar Net-Metering

• Net-metering measures difference between electricity you buy from utility & electricity your solar system generates.
• Allows you to use grid like bank account– debiting and crediting your utility account as you produce and use power.
• Utilities must credit you for electricity your system generates and feeds to grid at same price they would sell it to you.
• Excess electricity you produce but do not use within a 12-month period becomes your donation to the utility grid.
  • Solar panels can be installed on top of many rooftops, which eliminates the problem of finding the required space for solar panel placement.
  • Another great pro of solar energy is the cost. Although the initial investment of solar cells may be high, once installed, they provide a free source of electricity, which will pay off over the coming years.
  • The use of solar energy to produce electricity allows the user to become less dependent on the worlds fossil fuel supplies.

   

California’s Tiered Electric Rate Structure