How Much Does It Cost To Install Solar Energy System in California

The cost of installing a solar energy system in California varies a lot and would depend on the kind of tax credits or rebates available to you locally. In states where there are federal programs and incentives that pay for the cost of the system, you can get a solar energy system installed for at a very affordable price.

Why Prices Are Going Down Steadily

Solar panel installation cost in California has reduced significantly over the years with rising demand as more and more homeowners prefer going solar. Also, there are more manufacturers and distributors of solar panels to satisfy the increasing demand. The increase in competition has helped in bringing down the price of solar panels as well as the overall cost of installing the system.

Homeowners in California have been extremely supportive of alternative energies and their enthusiasm and initiatives has put the state way ahead of its neighbors. With plenty of sunny days and lots of land, buying solar panels for home is an idea that many homeowners are passionate about. The support for environmentally-friendly initiatives has helped solar power initiatives thrive in the state for a long time now.

Support Through Incentives And Rebates

Another major reason for the boom in solar panels on Californian homes is the numerous incentives and encouragement the citizens get from local government. People can actually lease a solar power system for zero down through an innovative prepaid solar lease. This makes it easy for homeowners in California to go solar. Citizens using solar energy get support from the government through rebates. In fact, different cities of the state have rebate programs of their own to meet the specific local demands.

Even though solar panels installation costs money up front, it pays you back handsomely in the long term.

The cost of installation of a solar panel system would depend on the kind of space and facilities available on your rooftop. The time taken for the solar power setup to help you recover installation costs depends on several factors such as:

  • Rate structure of the local utility service
  • The amount of sunlight exposure received by the solar panels
  • The quality of the panels and the associated system
  • Average daily use

 Another big factor that affects the cost of installation of solar energy system is how you pay for it. Homeowners who prefer to pay cash up-front to buy solar panels can get back their investment within an average of 10 years. However, buying zero down is the preferred option.

The Cost Of Solar Panel Installation In California

Coming to the actual cost of solar panel installation on your rooftop, this is what an average household using 5600kW of electricity in California would pay around $19,500. The breakdown:

  • Solar panels $6,500
  • System cost $9,000
  • Balance of system cost $2,500
  • Installation charges $2,500
  • Cost towards labor $3,000
  • Inspection and permit costs $4,500
  • Cost of operations $3,000

 California solar incentive program and the federal tax credit can account for an average total of $9,500 which means the net costs would could down to approximately $10,000.

 Understanding The Terms

 When it comes to solar panels, expensive need not necessarily mean the best. You should look at the cost per watt for a more realistic value of the solar panels. It is an indicator of cost to power output. Solar panel prices have reduced drastically over the past decade. For residential solar panels, it translates to around $1.5/W. Balance of system includes the wiring, mounts, inverters and other electrical parts. Installation costs include permits and neighborhood covenant requirements. Operational costs include monitoring and maintenance of the system, cost towards repairs, insurance, and other overheads.