How to Save Money on Solar Panels In California

Hey there! As a fellow solar enthusiast here in the Golden State, I want to share the inside scoop on just how much you can save by going solar. With the right incentives and programs, you’ll be shocked what an array will cost you even today.

Let’s dive in!

California‘s Booming Solar Industry

California leads the nation in solar energy – with over 32,000 MW now installed, we generate nearly 10% of our electricity from the sun. That‘s up over 10x in the last decade alone, as you can see:

[Insert Chart – CA Solar Growth 2010-2023]

Beyond benefiting the environment, this solar boom has driven down costs through greater efficiency and economy of scale. The average price per watt has dropped 70% in the last 10 years.

Today, a typical 6 kW residential system runs around $16,000 before incentives. And with electricity rates continuing to rise here in California, a solar array can save the average home $40,000 or more over its 25+ year lifespan.

Maxing Out the Federal Solar Tax Credit

The federal Investment Tax Credit (ITC) remains one of the most valuable incentives to lower the upfront cost of solar panels. Here’s a breakdown of its current value:

Years	Tax Credit Amount
2023-2032	30% of system cost
2033	26% of system cost
2034	22% of system cost

For a $16,000 solar array installed in 2023, you‘d save 30% or $4,800 off the final price. Not bad!

To qualify for the full 30% credit under current rules, you‘ll need to purchase your solar panel system upfront, rather than leasing or signing a power purchase agreement. But as you can see from this cost breakdown, the further incentives and energy savings make it well worth it over the long run:

[Insert Chart – Federal ITC cost recoupment timeline]

I‘ll dig more into buying vs. leasing later on.

Stacking CA State and Local Solar Incentives

On top of Uncle Sam’s tax credit, California offers a few additional incentives worth tapping into:

Incentive	Overview	Value
Net Metering	Sell excess power to grid	Offset future bills
LADWP Rebate	Los Angeles solar rebate	Up to $15,000
Property Tax Exemption	100% solar tax exemption	Varies, up to $5,000/year

While not as lucrative as some states, these perks further boost solar savings in the long run. Homeowners enrolled in LADWP‘s net metering program alone could pocket over $30,000 extra over 25 years through bill credits.

Your actual savings will vary on factors like system size, sunlight exposure, and electricity rate plans. But with the right package incentives, most California solar owners can recoup their after-tax costs within 5-7 years:

[Insert Chart – CA incentive cost recoupment timeline]

California‘s Nation-Leading Renewables Push

What makes solar so valuable here also comes down to policy. California has set one of the most ambitious renewable electricity standards nationwide:

Year	Renewables Target
2023	38%
2026	44%
2030	60%
2045	100%

With utilities mandated to keep ratcheting up solar and wind contracts, our clean energy generation climbs every year. That means the value of homegrown renewable electricity will continue rising over time as well.

[Insert Chart – Projected value of CA solar over time]

By frontloading your investment today with solar panels, you can secure cheaper, fossil fuel-free power for decades to come!

To Buy or To Lease: Key Tradeoffs

When weighing whether to purchase your solar array or lease through a provider, consider the following:

	Buy	Lease
Upfront Costs	Higher	Little to none
Incentives	Qualify for tax credits & rebates	Typically none
Long Term Cost	Lower	Higher

While leases seem attractive to avoid high upfront prices, they disqualify you from thousands in potential incentives. And you end up paying significantly more over your system lifetime in the long run:

[Insert Buy vs Lease cost analysis chart]

My take? With California‘s sweet combo of federal tax credits and utility bill savings, go for the upfront purchase. The long run ROI is unmatched.

Reach out if you need any help number crunching!