Breaking Down Home Solar Costs in San Jose

With over 300 days of sunshine per year, San Jose, California offers limitless solar potential for PV panels. If you’ve got access to that kind of year-round power output, you should consider home solar panels for your own property. Costs are coming down all the time, and rebates have made going solar in San Jose cheaper than ever.

To find out how much it costs to install solar in your area, click here.

Your Solar Power System

The size of your home is the biggest factor in determining how much your solar panel installation will cost. Once you find your certified installer, they will assess your home for such factors as:

• Average energy consumption
• Number of solar panels needed
• Total cost of panels and installation
• Savings on future energy bills

Home solar systems range in price from a few thousand to $30,000 and up. State and federal rebates, however, reduce those costs by 40%-60% depending on where you live. Your initial investment can be recouped later through much lower energy bills.

The advantages of using solar energy include reducing your carbon footprint and the money you need to pay for other energy sources, like natural gas for heating and electricity for appliances, lighting and cooling. You can also see a large portion of your investment come back to you in tax season, when you can apply for any credits you’ve earned.

Federal Tax Credits

Residential solar panel installations are eligible for a whopping 30% tax credit through the federal government, while the state of California offers additional rebates. Solar water heaters for indoor use are also eligible for the 30% federal credit.

Local and state rebates can be applied as well. You may want to have an energy audit completed on your home before your solar panels are installed. An energy auditor can make recommendations for energy-efficient upgrades needed in your home, like tighter seals around your windows and doors, new insulation, duct sealing, window replacement or even a new heating and cooling system. With those adjustments made, you can get the most out of your solar power system and save even more money in the process.

San Jose, California Rebates

In addition to the 30% federal rebate offered for installing solar panels, the state of California also offers different types of rebates and savings programs for going solar. The California Solar Initiative rebates are administered through your local utility, which for San Jose is most likely PG&E. The utility typically provides your energy audit and inspects the home to ensure you’re eligible for cash rebates.

California offers one of the most comprehensive rebate programs in America. The rebates vary depending on your city, county and which utility you use. Currently, customers of Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric can earn $0.35 per watt of solar power generated. However, this will decrease to $0.25 when capacity is reached, so it’s best to get cost estimates soon.

Home solar costs are expensive initially, but with many rebates in place you will pay significantly less than you’re quoted. You’ll also see massive savings in your energy bills, putting money back in your pocket immediately.

Photo via Mjmonty & Jesse Wagstaff

Posted on May 24th in Solar Funding by Brittany.