Solar Solutions

Mark Ferron, an outgoing commissioner on the California Public Utilities Commission (CPUC), voiced strong support for California solar incentives in a farewell letter he sent on his final day in office. Ferron is stepping down due to an ongoing fight with prostate cancer.

In his letter, he urges the commission to resist efforts by the state’s utilities to curb the growth of distributed generation (DG) and instead represent the interests of solar customers and renewable energy in general.

CPUC Regulates Utilities and Solar Rebates

The CPUC, which regulates our state’s investor-owned utilities (including Southern California Edison), is tasked with determining the rates that customers pay for their power. They are also in charge of approving incentive programs that are designed to encourage the growth of DG resources.

Utilities companies must first ask permission of the CPUC in order to increase their rates or change the types of rebates they offer solar customers.  Because of this, the CPUC plays a pivotal role in determining whether solar power will continue to grow in California.

Ferron’s Opinion on AB 327 in Relation to Solar

Ferron urged caution in dealing with AB 327, a new law that gives the CPUC authority to determine whether utility companies can charge a flat fee to all customers (including solar customers) and set guidelines for the California’s Net Energy Metering program (a program that allows solar panel owners to make solar energy and sell it back to the utility company).

“…Recognize that this is a poisoned chalice: the Commission will come under intense pressure to use this authority to protect the interests of the utilities over those of consumers and potential self-generators, all in the name of addressing exaggerated concerns about grid stability, cost and fairness,” Ferron wrote in his letter. “You – my fellow Commissioners — all must be bold and forthright in defending and strengthening our state’s commitment to clean and distributed energy generation.”

Ferron Stresses Importance of Solar Moving Forward

Utility companies have generally been reluctant to support rooftop solar power because they believe that solar customers are not paying their fair share of the “soft costs” of operating a grid, namely transmission and maintenance. However, solar industry advocates have made the case that solar rate payers are in fact providing positive benefits for the grid by allowing the utility companies to spend less on building more plants.

Solar advocates also point out that utility companies have been relatively slow when it comes to construction of new solar panel plants. If California is to meet its renewable portfolio standard (RPS) — which requires the state to derive 33 percent of its electricity from renewables by 2020 — it’s going to need more rooftop solar generating capacity.

By allowing electric companies to slow the growth of this technology, Ferron argues, it will make it less likely for the state to accomplish its RPS goals. Hopefully, the CPUC takes Ferron’s letter to heart and protects California’s environmental and economic future by backing California solar rebate programs.

It’s been a record-breaking year for solar energy. In the past twelve months, the United States installed an estimated 13 gigawatts of solar energy across our 50 states. That’s enough to power 2,000,000 homes!

Not to mention, the solar industry is now employing almost 120,000 people at more than 6,100 companies. Solar panel installation is not just good for your pocket book, it is also great our economy.

There’s no sign that the solar industry will slow down. Many project that 2014 will be even more successful! More great facts are at SEIA’s America Supports Solar website.

The Solar Energy Industry Association (also known as SEIA) invited solar enthusiasts across the country to celebrate by posting photos of their support online. Some of our employees joined in the fun and took photos with our signs of solar support. Check out our photo galleries on the AMECO Solar Facebook page.

Location: Westminster, CA
System Type: Solar Electric (PV)
System Size: 6.09 kilowatts
System Details: 21 LG Solar Panels with 21 Enphase Microinverters and Online Monitoring
Year Installed: 2013

Electric Bill Before: $389
Electric Bill After: $155
Bill Reduced by 60%!

Each year Yvonne and Tim’s neighborhood turns into a holiday wonderland where all the homes are decorated with elaborate Christmas light displays. Though they loved getting in the holiday spirit and putting up their own lights, they did not like receiving their electric bill afterwards. Sometimes their holiday bill would run as high as $375 or more!

Though they had looked into solar a few years before, a close friend convinced them that it was a good time to consider solar panel installation again. They began looking for a solar installer in the early fall and found AMECO Solar.

Requiring High Standards for their Solar Contractor

Being a contractor herself, Yvonne had high standards for her solar contactor. AMECO was able to meet her requirements by showing proof of the necessary insurance and workmen’s comp, using trained solar panel installers instead of hiring sub-contractors, and backing up our solar technology with competitive warranties. Both she and Tim were also impressed by the fact that our company has been installing solar panels since 1974.

Shortly after meeting with Todd and listening to his informational, no-pressure presentation, they signed a contract and scheduled the solar installation. Since they wanted to power their holiday display with solar energy, they asked that the system be installed and working by December 15th.

Organized and Efficient Solar Installation

“The installation process was very organized and went smoothly,” said Tim. He enjoyed working with David, our Operations Manager, who was flexible and very responsive whether by phone or email.

By December 9th, their solar system was turned on and feeding solar energy to their home. Just in time for the holidays!

Solar Savings = Holiday Savings

Since the solar system was turned on, they have enjoyed logging onto the online monitoring system to check in on the energy production. “We chose to install microinverters so that we could track the efficiency of each solar panel and make sure that it is performing as expected,” Tim shared.

So far, their solar panel production is off to a great start. The panels have produced enough solar energy to bring their electric bill down to only $155. Compared to past bills of $389 or more, this is a significant savings! And so, Yvonne and Tim end the holiday season differently than most — with more money in their pockets than expected.

Big things are happening for solar in Los Angeles. Not long ago, we shared details on Environment California’s push to make solar a city-wide priority. Well, that hard work paid off! Mayor Eric Garcetti has officially thrown his support behind solar, paving the way for more clean energy across the city. What does this mean for you? It means incredible opportunities. By taking advantage of key incentives like LA solar rebates and the official Los Angeles solar panel program, going solar is more affordable than ever. Let's break down how these programs can help you save.

What is the Los Angeles Solar Panel Program?

A few days ago Los Angeles Mayor Eric Garcetti called on the city to raise its amount of solar-generated power to 20 percent of peak demand by 2020.

His statements indicate that he is firmly committed to the growth of the city’s solar resources, which currently meet about 2 percent of its total electricity needs. Garcetti is hoping that Los Angeles can install 1,200 megawatts (MW) of generating capacity, a little less than one-fifth of the 6,100 MW of peak demand that the city experiences in the summer.

Garcetti’s statements come at an uncertain time for the Los Angeles Department of Water and Power (LADWP). The agency is currently looking for a new general manager after Ron Nichols stated that he will be stepping down for personal reasons. The hope is that the new General Manager of the utility company will prioritize the growth of solar energy so that Mayor Garcetti can meet his ambitious 20 percent goal in six years.

Shared Solar Program

Not everyone who wants to support clean energy owns a home with a roof suitable for solar panels. The Shared Solar program is designed specifically for Angelenos living in apartments, condos, or duplexes. This initiative allows you to lock in a portion of your electric bill for 10 years, protecting you from rising energy costs. By participating, you not only stabilize your own expenses but also contribute to the growth of local clean energy and job creation. It’s a fantastic way for more residents to get involved in the city’s renewable energy future, even without a traditional installation on their own property.

Feed-in Tariff (FiT) Program

For property owners and developers, the Feed-in Tariff (FiT) Program offers a direct financial incentive to go solar. This program allows you to generate clean energy and sell it directly to the Los Angeles Department of Water and Power (LADWP). Essentially, you become a mini power producer. This is a powerful tool for encouraging the development of renewable energy across the city, turning rooftops and open land into assets that generate both power and revenue. It’s a key part of the city’s strategy to build a decentralized, resilient energy grid with the help of commercial partners and private citizens.

LADWP Solar Marketplace

Finding the right solar installer can feel overwhelming, which is why the LADWP created its Solar Marketplace. This online platform is a great starting point that connects customers with various solar companies, allowing you to compare offers and get expert advice. While the marketplace helps you gather quotes, it’s still important to choose a company with a proven track record. With over 50 years of combined solar and roofing experience, AMECO provides the stability and expertise you need for a successful project. Our approach focuses on creating a custom solution for your home, ensuring you make an informed and confident decision for your energy future.

Why Go Solar in Los Angeles?

“Southern California is practically a synonym for sunshine,” Emily Kirkland of Environment California said in a statement. “But here in Los Angeles, we’re still getting less than 2 percent of our power from the sun. Mayor Garcetti showed tremendous vision in calling for 20 percent local solar power by 2020 last January. Now, it’s time for him to make that promise a reality.”

The source reports that adding 1,200 MW of generating capacity will create 32,000 jobs and offset the carbon emissions created by over 1 million cars.

The LADWP Net Metering Advantage

One of the best financial reasons to go solar in Los Angeles is the city's net metering program. Through the Los Angeles Department of Water and Power (LADWP), you can get full credit for any extra solar energy your system produces and sends back to the grid. This is a huge plus because it directly helps offset your electricity bills, making the switch to solar a smart financial move. When you decide to install solar panels, understanding these local incentives is crucial, and the LADWP program is one of the most favorable in California for maximizing your return on investment.

This program does more than just save you money; it also helps Los Angeles reach its clean energy goals and creates a more stable power grid for the entire community. According to the LADWP's solar programs, these initiatives are specifically designed to cut down on pollution from older power sources. So, when your panels generate more electricity than your home uses, you’re not just lowering your own costs—you're actively contributing to a cleaner, more sustainable city. It’s a powerful way for homeowners to make a positive impact while also gaining energy independence.

How LA Solar Rebates Make Going Solar Affordable

The LADWP currently has an incentive program that provides a lump sum payment to customers who decide to switch to a home solar system for their electricity needs. The program had a declining incentive payout, meaning that as more solar energy systems come online, the incentive goes down and those who receive funds are given a smaller per-watt rebate.

Currently, the LADWP rebate program is in its eighth tier (out of ten), with an incentive of 40 cents. This means that for the typical four-kilowatt system, homeowners will receive a lump sum payment of $1,600.

These rebates don’t include the Federal Renewable Energy Tax Credit, which covers 30 percent of the cost of installation for qualifying systems.

In order to reach Mayor Garcetti’s goal, the LADWP and federal government need to continue these programs and help homeowners realize savings on their solar installations. Doing so will not only benefit their individual’s household finances and the economy, it will also help the region become more sustainable and less reliant on fossil fuels.

The Federal Solar Tax Credit (Residential Clean Energy Credit)

One of the most significant financial perks for going solar is the federal government's support. The Residential Clean Energy Credit, often called the Federal Solar Tax Credit, allows homeowners to deduct 30% of the total cost of their solar energy system from their federal taxes. This isn't just a small rebate; it's a dollar-for-dollar reduction of your tax liability. This credit applies to the entire cost of the system, including panels, inverters, wiring, and even the installation labor. If you add a battery backup system at the same time, its cost is also eligible for the 30% credit, making it an excellent time to invest in energy independence.

State and Local Incentives

Beyond the federal credit, California offers a patchwork of state and local incentives that can further reduce your costs. Many cities and local utility companies have their own unique programs, such as special rebates or performance-based incentives. For example, utilities like Alameda Municipal Power, SMUD, and LADWP have historically offered programs to encourage residents to adopt solar. Because these programs can change and are specific to your location, working with a local expert is key. A seasoned solar installer can help you identify every available incentive in your area to ensure you get the best possible price for your system.

Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH)

To ensure solar is accessible to everyone, California has a program specifically for low-income homeowners in designated disadvantaged communities. The Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program is a fantastic initiative that can make going solar incredibly affordable. For eligible households, this program can cover a significant portion, and sometimes even the entire cost, of a new solar panel system. It’s designed to bring the benefits of clean energy and lower electricity bills to the communities that need it most, helping to reduce financial burdens and promote environmental equity across the state.

The Crucial Role of Solar Batteries

While solar panels are amazing for generating power and saving money, they have one major limitation: by themselves, they don't provide power during a grid outage. For safety reasons, most grid-tied solar systems automatically shut down when the grid goes dark. This is where solar batteries come in. A battery backup system stores the excess energy your panels produce during the day. When a blackout occurs, your home can seamlessly switch over to its stored battery power, keeping your lights on, your refrigerator running, and your essential devices charged. It’s the key to true energy independence.

Why Batteries Are Key to Maximizing Savings

A solar battery is now essential for getting the most savings from a solar system in California, largely due to the state's net billing rules (NEM 3.0). Under these rules, the compensation you receive for sending excess solar power back to the grid is significantly lower than the price you pay for electricity from the utility. Instead of selling your extra energy for pennies, a battery allows you to store it for your own use later. You can power your home with your stored solar energy during the evening when electricity rates are highest, drastically reducing your reliance on the grid and maximizing your financial return.

Self-Generation Incentive Program (SGIP)

To help homeowners with the upfront cost of adding energy storage, California offers the Self-Generation Incentive Program (SGIP). This program provides substantial rebates for purchasing and installing a new battery system. The incentive is available for residential customers, businesses, and even multi-family housing units, making it a versatile tool for promoting energy resilience. The rebate amount depends on the size of your battery and other factors, but it can significantly reduce the overall investment, making it much easier to add this critical component to your solar system and protect your home from outages.

Demand Side Grid Support (DSGS) Program

Another interesting perk for battery owners is the Demand Side Grid Support (DSGS) Program. By enrolling in this program, you agree to let the utility draw a small amount of power from your battery during periods of extreme grid stress, like on a hot summer afternoon. In exchange for helping to stabilize the grid, you can earn financial rewards, potentially up to a few hundred dollars per year. It’s a simple way to get a little extra return on your battery investment while contributing to a more reliable and resilient power grid for your entire community.

Understanding Solar Costs and Financing

Talking about cost is a crucial step in any big home improvement project, and solar is no different. The average price for a home solar system in California is around $22,600 before any incentives. However, that number doesn't tell the whole story. After applying the 30% federal tax credit, that average cost drops to about $15,820. When you factor in local rebates and long-term energy savings, the investment becomes even more attractive. To get a clearer picture of what a system might cost for your specific home, you can use an estimate calculator as a starting point for your research.

Average System Costs in California

While the initial price tag is important, the real magic of solar is its long-term value. With all the available incentives, a solar system paired with a battery can often pay for itself in about eight years. After that payback period, the energy your system produces is essentially free. Considering that a solar system is designed to last for 25 years or more, that translates to decades of savings on your electricity bills. It’s not just an expense; it’s an investment in your home’s value and your financial future, protecting you from rising utility rates for years to come.

Financing Options for Your Home

If paying for a system upfront isn't the right move for you, there are plenty of financing options available. Many homeowners choose to take out a solar loan, which allows them to finance the system with little to no money down and enjoy energy savings from day one. Another option in some areas is PACE (Property Assessed Clean Energy) financing. This is a unique type of loan for green energy projects that you repay through an annual assessment on your property tax bill. Exploring these options with a solar professional can help you find a path to ownership that fits your budget.

California's Property Tax Exemption for Solar

Here’s a fantastic benefit that often flies under the radar: in California, adding a solar panel system to your home will not increase your property taxes. Normally, a significant home improvement that adds value to your property would result in a higher tax assessment. However, the state has a property tax exemption specifically for solar energy systems. This means you get to enjoy all the added value and energy savings of your new system without the downside of a bigger tax bill, making the financial case for going solar even stronger.

Practical Tips for Your Solar-Powered Home

Once your solar system is up and running, a few small adjustments to your daily habits can make a big difference in your energy savings. The key is to align your electricity usage with your solar production. Your panels generate the most power in the middle of the day when the sun is high in the sky. By shifting some of your energy-intensive activities to this timeframe, you can run your home directly on solar power instead of pulling from the grid or your battery, which maximizes your self-consumption and minimizes your utility bill.

Managing High-Power Appliances

Think about appliances that use a lot of electricity, like your dishwasher, washing machine, or electric vehicle charger. Try to run these heavy-duty appliances during the day instead of at night. For example, setting your dishwasher on a timer to run at 1 p.m. is a simple and effective strategy. While most modern appliances work perfectly with a standard solar setup, some extremely high-power devices may require special consideration. This is why a customized system design is so important; it ensures your solar and battery setup is tailored to your family’s unique energy needs and lifestyle, which is a core part of our approach at AMECO.

Frequently Asked Questions

I rent my home or live in a condo. Does this mean I can't benefit from solar power? Not at all. Los Angeles has a program called Shared Solar specifically for people in your situation. It allows you to support a local solar project and lock in a portion of your electric bill for a decade, which can protect you from future rate hikes. You get the financial benefits of stable energy costs and contribute to the city's clean energy goals without needing to install any panels on your own roof.

Do I really need a solar battery? Can't I just get panels? While you can just get panels, adding a battery is what gives you true energy independence and maximizes your savings. Panels alone do not provide power during a blackout. A battery stores your extra solar energy so you can keep your lights on when the grid goes down. Plus, with California's current net billing rules, it's much more valuable to store your excess solar power for your own use at night instead of selling it back to the utility for a low credit.

All these rebates and tax credits sound great, but is the process complicated? It can seem like a lot to sort through, but you don't have to do it alone. The 30% federal tax credit is something you claim when you file your annual taxes. For the various state and local programs, like the LADWP rebate or SGIP for batteries, a reputable solar installer will guide you. A good company handles the paperwork and ensures you're signed up for every incentive you qualify for, making the process straightforward for you.

Will installing a solar system on my home increase my property taxes? This is a common question with a great answer: no, it will not. California has a property tax exemption specifically for solar energy systems. This means you can add significant value to your home and enjoy all the long-term energy savings without the downside of a higher property tax bill. It's one of the best, and often overlooked, financial perks of going solar in the state.

I'm interested, but this is a lot of information. What's the best first step to take? The best way to start is with a personal consultation. Every home and every family's energy use is different, so a one-size-fits-all solution doesn't really exist. Sitting down with a solar expert allows you to get a custom plan based on your roof, your average electricity bills, and your budget. They can give you a clear picture of your potential costs and savings, taking all the guesswork out of the process.

Key Takeaways

• Combine Incentives to Lower Your Cost: Take advantage of the 30% federal tax credit, state rebates, and local programs from LADWP. Combining these incentives dramatically reduces the upfront cost of going solar, making it a smart financial move for your home.
• Add a Battery for Security and Savings: A solar battery is your key to true energy independence. It keeps your lights on during an outage and lets you store your own solar power to use at night, helping you avoid peak utility rates and get the most value from your system.
• Shift Your Energy Use to Midday: Maximize your savings by running high-power appliances like your dishwasher or EV charger when the sun is strongest. This simple habit lets you use the free, clean power your panels are generating instead of paying the utility company.

Related Articles

• LADWP Changes Solar Incentive Program
• Can LA Achieve 20 Percent Solar Energy?
• AB 217 Brings Solar To Low-Income Californians
• Exploring Solar Energy Rebates and Incentives | AMECO Solar
• LA's Solar Potential Could Lead To 29,000 Jobs