California
The current status of the solar electricity incentives and rebates are somewhat complex. In fact, much of the California Solar Initiatives incentive programs are based directly with the respective utilities. So for example, if you live in the San Francisco Bay area, the solar incentive programs are governed by PG&E. Southern California Edison deals with the state level incentives for people living down in Southern California.
The bottomline is this, the solar incentives are running out, and now is the time to be looking into solar power for your home if you intend to do it. Since electricity is so expensive in the state of California, the per kilowatt cost is what can make solar an attractive option. If you are able to find an installer who will install panels on your home for an out the door price of $6/watt, then you very well could be in business. There is always going to be the 30% federal tax credit on the solar system, so you have that incentive to look forward too. But, if you are for example paying $.35/kwh for some of your electricity, then that can be covered with a solar system. Take a good look at your electric bill. If it looks like you have a tiered fee structured, then that is actually good for the financial equation of solar. Think about it, lets say your first 300 kwh is $.10/kwh. Your next 500 is $.19. And your next 500 is $.25/kwh. This is a tiered plan that gets more expensive the more energy you use each month. If you can have a solar system shave off the top tiers of electricity, then you can eliminate your most expensive power. That is a great thing to try and do. In fact, probably in my opinion should tell the solar installer that you DON’t want to eliminate all of your electric use, but rather the most expensive electriciy. This will pay for itself much faster too. Of course if you are one of the very priviledged who money is no worry, they heck yes, go and install a system that covers all your electricity needs. That is just fine too.
Again, just like other states, the state will lower your state level incentive if the system is not installed correctly. They want the systems to be installed and generating as much power as possible otherwise they will lower your solar incentive. Keep that in mind, it is very important.
Here are some sample calculations for California:
In San Francisco, a 4kw solar system is expected to produce about 5784 kwh of electricity per year. If the average cost is about $.125/kwh, that equates to about $723/year in electric bill savings.
In Los Angeles, a 4kw solar system is expected to produce about 5879 kwh of electricity per year. If the average cost is about $.125/kwh, that equates to about $735/year in electric bill savings.
In Sacramento, a 4kw solar system is expected to produce about 5597 kwh of electricity per year. If the average cost is about $.125/kwh, that equates to about $699/year in electric bill savings.