It’s no secret that energy costs are on the rise. The average California family spends $2,700 a year on electricity. Unfortunately, as utilities are getting more expensive, it’s becoming more difficult to budget for these costs.
Solar panels may be the answer if you’re looking for ways to reduce your monthly expenses and protect yourself against future rate hikes.
Let’s take a closer look at how solar panels can protect against rising energy costs in Los Angeles.
The Rising Cost of Electricity
According to the EIA, electricity prices have risen 8% since 2021. In California, there are several reasons why your utility bills might be higher. Fuel prices, extreme weather conditions, or increased demand for energy can affect electricity costs.
The good news is that you can take back control of your electric bills with solar. By investing in solar energy, you can predict and control your monthly electric costs.
How Solar Panels Can Protect You from Rising Energy Costs
Installing solar panels on your home in Los Angeles is one of the best ways to protect yourself against rising energy costs. Here are some of the ways solar can help you save money:
Fix your utility rates
Solar can fix your utility rates, helping you budget for your energy costs. Unlike traditional energy sources, solar energy isn’t subject to volatility or rate increases from your utility company. Solar panels typically come with a 25-year warranty and promise of low energy costs for decades. You can save thousands of dollars over the next 20 years by locking in low rates. The average customer who installs solar energy in Los Angeles saves $42,000 over the lifetime of their system.
Reduce your energy bills
Solar panels can help you save money by reducing the amount of electricity you need to buy from your utility company. You could reduce or eliminate your electric bill entirely depending on how much energy you produce. The amount of solar electricity generated depends on the system’s size and the amount of sunlight available. The average California household will need a 6.5 kilowatt (kW) solar energy system to offset their home’s annual usage.
Earn money with solar rebates and incentives
California offers several incentives to encourage homeowners to switch to solar energy. You may be eligible for local and federal tax credits, which can lower the cost of your solar system installation.
- Federal solar tax credit. The Federal Solar Tax Credit, also known as the Investment Tax Credit (ITC), is a 30% tax credit available to homeowners who install solar panels on their homes.
- Property tax exclusion. Solar energy systems installed in California are not subject to property tax reassessment, meaning your taxes will not increase even if the value of your home does.
- Net metering. California also has net metering laws, which allow you to earn credits for the energy your system produces. Any excess electricity produced by your solar panels is returned to the utility grid and credited toward future electricity bills.
Enjoy increased ROI over time
Investing in solar energy can be a wise decision for your finances. Solar panels offer a great return on investment or ROI. Not only will you be able to save money on your monthly energy costs, but you will also see a financial return on your investment. Because solar energy systems are designed to last 25 years or more, you’ll enjoy an increased return on investment over time as electricity prices rise. You could save thousands of dollars in electricity costs over the life of your system. Enjoy peace of mind knowing that you won’t have to worry about rising energy costs.
Get Started with Solar Energy in Los Angeles
If you’re ready to take control of your energy costs and protect yourself against rising electricity rates, it’s time to get started with solar energy in Los Angeles. Work with trusted solar professionals to design and install a system that fits your home and lifestyle, and enjoy all the financial benefits of it. With solar panels, you can protect yourself against rising energy costs and take back control of your electric bills. So start enjoying the financial security of solar energy today!
At Paxton Energy, we help homeowners save money on their monthly electric bills with solar. Our team of experienced solar professionals will help you find the best solar solution for your home and budget.
Contact us today for a free solar assessment to help you determine if solar is right for your home.