Are you considering the Best Solar Panels for Your Home in Los Angeles California?
You’ve probably heard about the many benefits of solar energy – it’s clean, renewable, and can save you money on your energy bills. But did you know solar panels can also provide a long-term return on your investment (ROI)?
Not only do solar panels save you money right away, but they also continue to pay off in the long run. With solar panel prices falling and utility rates rising, solar is a wise investment for any Los Angeles homeowner.
Continue reading to learn more about the return on investment of solar panels in Los Angeles, CA.
What is Solar ROI?
Solar ROI, or return on investment, is the time it takes for a solar panel system to pay for itself. In other words, it’s the amount of money you save on your energy bills each year compared to the cost of your solar panels.
Several factors affect solar panel ROI:
- The size of your solar panel system
- Your electricity rates
- The amount of sunlight your home receives
- The incentives and rebates you qualify for
How Solar Panels Save You Money and Increase Your ROI
Solar panel prices have fallen dramatically recently, making solar more affordable than ever. For example, the average cost of a 5 kilowatt (kW) solar panel system in Los Angeles is $14,000 before rebates and incentives. As a result, solar ROI will improve as solar panel prices continue to fall and efficiency increases.
Reduce your electric bill
In the short term, solar panels save you money on electricity bills. Your solar panel system will offset the cost of the energy you would otherwise purchase from your utility company. The size of your system and the amount of sunlight your home receives will determine how much you save each month. A typical California homeowner can expect to save $2,700 annually on their energy bills with a 5 kW solar panel system.
Avoid rising energy rates
Solar panels also offer long-term savings by protecting you from rising electricity rates. Utility companies typically increase rates by 3-5% each year, but with solar panels, you lock in a low rate for the next 20 years. Over the panels’ lifetime, that adds up to an average savings of $54,000 in California.
Take Advantage of Solar Incentives
Homeowners can take advantage of several solar incentives to reduce the upfront cost of solar panels and increase their ROI. These programs offer cash rebates and other financial incentives to encourage homeowners to switch to solar power. In addition, the federal government provides a tax credit for solar installations and state and local incentives available.
- Federal solar tax credit. The federal solar tax credit is one of the most valuable incentives for homeowners installing solar panels. It is a dollar-for-dollar reduction on your federal taxes, and it covers 30% of the cost of your solar panel system.
- Net metering. Net metering is a utility company program that allows solar panel owners to sell their excess energy back to the grid. This program significantly boosts your ROI because it credits you for the energy you produce, even when you’re not using it.
- Property Tax Exclusion. Solar energy systems in California are excluded from property tax reassessment. It means that when you install solar panels, and the value of your home appreciates, your property taxes will not go up.
- Solar rebates. Solar rebates are cash incentives government agencies, and utility companies offer to encourage homeowners to install solar panels. These programs provide a rebate on the cost of your solar panel system, which you can use to offset the upfront cost further.
Maximize Your Solar ROI
Best Solar Panels for Your Home in Los Angeles California, provide an excellent return on investment for Los Angeles homeowners. With falling prices and rising utility rates, solar panels offer a savvy way to save money and invest in your home. Homeowners can expect to save thousands of dollars on their energy bills over the lifetime of their solar panel system. Solar panels also offer protection from rising electricity rates and qualify for solar incentives, increasing your ROI.
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.