Los Angeles Solar Power: Check your Savings, Costs, Tax Breaks, Incentives and Rebates
As one of the biggest cities in the United States, Los Angeles has a lot of people who need power. But Los Angeles also has a huge ace up its sleeve. Located in sunny Southern California, Los Angeles is a natural choice when it comes to adopting solar energy as a source of renewable energy.
Combined with amazing incentives and rebates, Los Angeles residents are in perfect shape to adopt solar energy.
Return on Investment for Residential Solar Power in Los Angeles
The average home owner with a 5KW system can expect to pay around $20,000 for the system BEFORE applying any rebates and tax breaks.
This is no small change, and so the incentives play a big role in switching to solar power in California, and specifically, in the greater Los Angeles area. (Read on below to see the details of each incentive).
After applying all applicable incentives, homeowners in Los Angeles should expect to pay about $11,000 dollars, which is almost HALF of the original quote.
But haw so? Glad you asked!
• Initial rate for residential system will cost you about $20,000
• Apply your local Los Angeles rebate, and you can subtract about $4000 dollars.
• Apply the federal solar tax credit at 30%, and you can deduct almost $5000 dollars.
• Your new solar panels installation quote in Los Angeles is now in the $11,000 dollars range.
• You can expect to get your return on your investment in about 9 years.
• Your Los Angeles property will increase thanks to your brand new PV system, and you will pay no taxes for that.
• Initial rate for residential system will cost you about $20,000
The above breakdown is just an estimate. Every house and location is different.
Los Angeles Solar Panel Installation Process
By scheduling a home visit, you’ll be able to provide them with more specific information. A home visit can help your solar installation team draft up accurate quotes about the cost of the system and potential savings.
With the information you provide us, we’ll be able to connect you with local and trusted Los Angeles solar installers near you.
By allowing the installers team to take measurements, assess your home situation, and roof situation, you’ll be able to ask more detailed questions and they’ll have a better idea of how they can help you.
With detailed information, the installers will be able to provide you with a detailed PV quotes, taking your full situation, including your utility bill, into account as well as any potential tax rebates, breaks, and incentives that may be available to you.
After you’ve signed the agreement, the team can commence with installing your solar panel system. This process typically takes about three to four days.
Once the panels have been installed, that’s it. You’ll be able to sit back, relax, and enjoy the energy savings.
Here is the process with few quick steps:
2. Talk to trusted installers and receive accurate quotes for your installation.
3. Select the best Los Angeles Installer for your home and Install your system.
4. Enjoy your savings and helping earth.
Los Angeles Solar Power Incentives, Tax Breaks and Rebates
Residents in Los Angeles can enjoy plenty of incentives, tax breaks, and rebates for installing a solar panel system.
Along with net metering, something we’ll be discussing in a moment, residents can benefit from Los Angeles’ solar rebate program. In the state of California, the solar rebate program varies by country and district.
In Los Angeles, residents can expect to earn up to $400/kW. Thankfully, there’s no cap on the program as of this time, making it easier than ever to benefit from Los Angeles’ solar rebate program.
By talking to a qualified solar installation team, you’ll be able to find out more about what you can expect to gain from installing a solar panel system and what specific rebate amounts, depending on the size of your system, that you can expect to receive.
Los Angeles RPS
California has an aggressive RPS, or renewable portfolio standard.
But as a Los Angeles resident, there’s a lot of incentive to adopt solar energy in order to help the rest of California meet their RPS goals by 2033.
The interim goal is currently 25% of the state’s energy to be produced by renewable energy means in 2016, a goal which is close to being met.
Compared to other states, California has one of the most ambitious RPS plan in the nation. And because utility companies will have to pay significant fees for not producing enough renewable energy, there’s a lot you can expect to gain from producing your own through solar power systems.
Los Angeles Tax Credits
Unfortunately, California no longer offers a state tax credit for solar power systems. The state tax credit program ended back in 2005.
However, Los Angeles residents can still benefit from the 30% Federal solar tax credit. This allows residents to take 30% of the system’s value off of their taxes.
The Federal solar tax program is available to systems installed before or in the year 2016. It can be a handy way to help offset the expense of installing a solar panel system.
Tax Exemptions in Los Angeles
The good news for Los Angeles residents is that they can benefit from very generous tax exemptions when it comes to their solar panel system. While solar panel systems can add a lot of value to your home, you will not be taxed for the increase in home value in California. Residents can enjoy 100% property tax exemptions from installing the panel.
However, the unfortunate thing is that Los Angeles residents won’t be able to benefit from sales tax exemptions. Solar panel system in California are still subject to sales tax.
Electricity Rates in Los Angeles
In Los Angeles, power certainly isn’t the cheapest in the nation. In fact, the average resident in Los Angeles and the rest of California can expect to pay .17/kWh of electricity, putting California in the top ten when it comes to the highest electricity bills in the nation. And considering the fact that, on average, electricity prices can go up as much as 3.5% per year, sticking with fossil fuels can mean you’re paying more for an environmentally hazardous and limited resource.
But with solar energy, you can help offset high (and climbing) energy prices.
Los Angeles Net Metering
By opting to connect your solar power system to the energy grid, you can opt for the net metering program. Any surplus energy produced by your solar power system can be sold back to the energy grid and the utility company is required to pay full retail price for the total cost of the surplus energy.
Los Angeles Solar with 0 down payment: Financing Options
We get it. Most people can’t afford to pay twenty to twenty-five thousand dollars for a solar panel system.
If you would like to enjoy all the benefits of a solar power system with no hefty initial investment, consider looking into a solar lease or a solar loan. Both options can help you obtain a solar panel system in Los Angeles without an arm or a leg.
But which one is right for you? That depends on your own unique situation. By talking to one of our partner solar panel installation teams, you can figure out which financing options work best for you and your unique situation.
A solar lease can be a very effective and attractive option when you’d like to obtain a solar panel system for zero money down. When you enter into a solar lease, which typically last for about 25 years, you’ll be able to benefit almost immediately from any potential energy savings without having to worry about ponying up the initial expense yourself.
With your current utility costs and the lease payments taken into account, you’ll still save an incredible amount of money on your monthly utility bill.
Los Angeles residents who look into a solar lease should keep in mind that they’ll be unable to opt for Federal Solar tax credits or any potential rebates. However, you’ll still be able to save big on your utility bills.
Because of the potential benefits of solar energy, many financial institutions are beginning to offer solar loans. These loans can help cover the cost of the solar panel system and allow you to purchase the system for little initial investment.
One will need to consider the interest rates of the loan. But because you own the system, you’ll be able to benefit from any potential rebates, tax credits, and so on.
This can be a great way to obtain a system without having to pony up the cash yourself. Be sure to be mindful of paying back the loan, which should now be a lot easier because of all the money you’re saving on your utility bills.
Solar PPAs are also an option depending on your situation. A solar PPA or Power Purchase Agreement, is an agreement that allows a developer to install a solar panel system on your roof.
Keep in mind that you will not technically own the system, meaning that the true owners of the system, either the developer or your landlord, will be the ones benefiting from any potential rebates or tax credits. But because you’ll be directly purchasing your energy from the owner of the solar panel system, you can expect cheap energy rate.
Electricity prices in California are some of the highest in the nation. When taking this and the ample sunlight received in southern California into account, Los Angeles is primed to adopt solar energy as a great, clean source of electricity.
Solar energy can help residents help offset their hefty electric bills, all while combating the use of dirty, limited fossil fuels and doing their part to help save the environment.
California’s impressive RPS is another thing to consider. With a goal of 25% of California’s electricity to be produced via renewable means by 2016 and 33% by 2033, there’s a lot of incentive for LAWPD, your local utility company, to invest in residential solar energy. And when you add in net metering and energy savings, you can benefit tremendously from a solar power system.
Solar loans can allow you to obtain and own your own system without a hefty initial investment. And a solar PPA can allow you, even as a renter, to benefit from cheap, low cost solar energy all without having to maintain or invest in system yourself.
It’s easier than ever to obtain a solar panel system. And when you take Los Angeles’ generous rebate program into account as well as property tax exemptions and the Federal solar tax credit into account, there’s a lot you can stand to gain from turning to solar energy in Los Angeles.
It’s easier than ever to benefit from the power of the sun and solar panel systems can help you take advantage of an incredibly powerful and bountiful energy resource.