What is Solar Energy?
Solar power is energy from the sun and can be turned into either heat or electricity. It is considered the best and most common type of renewable energy.
Solar energy technology can use this energy for many things, like electricity generating, lighting, or making an indoor setting more comfortable, as well as heating water for home, business, or industrial use.
Keep reading to learn all about solar energy.
How Does Solar Work?
Solar radiation is the energy emitted by the sun through light and heat. It’s the primary energy source for our planet and is essential for sustaining life on Earth. When sunlight reaches the Earth’s surface, it can be harnessed and converted into usable energy through various technologies, collectively known as solar energy systems.
Solar energy refers to the energy derived from the sun’s radiation. This energy can be converted into different forms, such as thermal energy (heat) or electrical energy. Solar energy is considered a renewable and sustainable power source because the sun’s energy is inexhaustible and does not produce harmful emissions like fossil fuels.
There are several ways to harness solar energy
1. Photovoltaics (PV)
You’re probably familiar with PV panels. Solar cells absorb the sunlight’s energy when sunlight shines on these panels. This creates an electrical charge that generates electricity.
2. Concentrating Solar-Thermal Power (CSP)
CSP systems use mirrors to focus sunlight onto receivers. These receivers collect the solar energy and convert it into heat. This heat can then be used to produce electricity or stored later. CSP is often used in large-scale power plants.
3. Integration into Systems
Solar energy doesn’t stop at generating electricity. It must be integrated into homes, businesses, and existing electrical grids. This integration combines solar energy with other sources to ensure a stable and reliable power supply.
4. Soft Costs
Aside from the hardware, there are other costs associated with solar energy, known as soft costs. These include things like obtaining permits, financing, and installation expenses. Solar companies also have to cover costs related to acquiring customers, paying suppliers, and managing their finances. These soft costs comprise a significant portion of the total expenses for rooftop solar systems.
6 Advantages of Solar Energy
Using solar energy instead of fossil fuels has many advantages. If you add solar panels to your home, you can enjoy these benefits:
Solar energy is renewable and helps the environment.
Solar energy comes from the sun and doesn’t run out. It’s clean and doesn’t release harmful gases like carbon emissions. Unlike fossil fuels, which harm the environment when we extract them, solar energy doesn’t cause damage. Also, it only needs a little water like traditional power plants.
Solar power can lower your electricity bills.
When you have solar panels in your home, you rely less on the electricity grid, saving you money on your bills. Sometimes, you might even produce more energy than you need and can sell it back to the utility company. This means instead of paying them, they might pay you! Even if you can’t get a whole solar system, solar lights can still help you save money.
You can earn money with Solar Renewable Energy Credits (SRECs)
Some states offer these credits for using solar energy. You can sell them to energy companies needing them to meet clean energy goals. This can be an extra way to make money from your solar panels.
Solar panels can increase the value of your home.
If you decide to sell your house, having solar panels can make it more attractive to buyers. They know they’ll save money on energy bills, making them willing to pay more for your home.
Solar panels are easy to maintain and last a long time.
Solar panels have few moving parts, so they don’t break down quickly. It would help if you kept them clean and in good shape; they can last up to 25 years. Plus, they only cost a little to maintain.
Solar energy works in any climate.
You might think solar energy only works in sunny places, but it can work anywhere. Even on cloudy days, solar panels can still generate electricity. Snow can even help by cleaning the panels and reflecting more light onto them. This versatility is especially important in reducing reliance on traditional energy sources like natural gas, which emit greenhouse gases harmful to the environment.
Some Disadvantages of Solar Energy
While solar energy has many benefits, there are also some downsides:
Solar panels can be expensive to install
Buying and installing solar panels can be pricey. Even though the cost is going down, it’s still a significant investment. Leasing options can help reduce the initial cost, but it’s still better for homeowners than renters.
Storing solar energy is costly.
Solar panels can’t produce as much energy when the weather is terrible. Storing that energy for later use can be expensive. Newer battery technologies are helping, but they’re still a significant expense.
Not all roofs are suitable for solar panels.
Solar panels might not work well for you if your roof doesn’t face the sun or isn’t angled right. Also, some roofing materials make installing solar panels more complicated or expensive.
Solar panels need sunlight to work.
Solar panels can’t produce electricity at night or during storms. If you want to rely solely on solar energy, you’ll need batteries to store energy when the sun isn’t shining. However, batteries can be expensive and require regular maintenance.
Overall, while solar energy has its drawbacks, the benefits are clear, and as technology improves, these disadvantages are becoming less of a problem.
Why is California Leading in Solar Energy ?
California is a solar industry leader in energy generation in the United States. The state makes up over 33% of the country’s solar power, making it the top state in solar energy production. California began promoting solar energy much earlier than other states, as far back as 1976.
Many California homeowners have solar panels on their homes. This is a significant factor in the state’s high solar energy production.
In sunny California, you can get a 6 kW solar panel system for about $15,060, roughly equivalent to $2.51 per watt. California is the top state for solar power, getting more than 25% of its energy from the sun.
Several financing options are available to help cover the costs of your solar panel. You can buy your system outright, but many homeowners finance it for six to nine years. You can also choose to lease your solar system.
What Affects The California Solar Panel Cost?
Here are some key factors that can increase or decrease the cost of solar panels in California, including:
Size Of Solar System
The size of your solar system is a primary factor in determining its cost. A more extensive solar system costs more because it has more panels, a larger inverter, and extra cables. However, the size of your system should align with your home’s energy consumption and electricity bills.
For instance, the average California home consumes over 7,000 kilowatt-hours (kWh) of energy annually. Using this as a reference point, a 5 kW solar system could cover the energy needs of an average home. After factoring in the federal tax credit, this installation typically costs around $8,785.
Solar Incentives in California
California offers an array of incentives to make solar power more affordable for homeowners. These incentives include:
Direct Rebates: Homeowners can benefit from direct rebates, which reduce upfront costs for installing solar panels.
Tax Credits: Various tax credits are available, which can significantly lower the overall cost of going solar.
State Tax Exemptions: California offers state tax exemptions, further easing the financial burden of solar installations.
Net Metering: Net metering lets homeowners earn credits for extra solar power, helping them save money over time.
Types of Solar Equipment and Their Impact on Cost
The type and quality of equipment you select can influence the price of your solar system. The latest solar panel models come in various types, offering different efficiencies and features.
For instance, you can choose between two common types: monocrystalline and polycrystalline solar panels. Selecting cheaper solar panels can reduce the total cost of the system. This is because panels account for a significant portion of the overall cost.
This rule applies to other components of your system as well. For instance, systems that incorporate microinverters, power optimizers, or batteries may have a slightly higher initial cost.
Net metering
Net metering, or net energy metering (NEM), is a unique program for people with solar panels. It lets you send extra solar power you don’t use back to the electric grid.
The California Public Utilities Commission approved a new net metering (NEM) 3.0 version. This latest version decreases the financial advantages of the state’s net-metered system.
Payment option
Solar Earth INC and other solar companies offer financing options for homeowners needing help to pay the total cost upfront. This includes payment plans and other alternatives to make solar energy more accessible.
- Solar Loans: You can opt for a solar loan with manageable monthly repayments at a specific interest rate.
- Solar leases are like renting a solar system. You pay monthly to use it, but you don’t own it.
- Power Purchase Agreement (PPA): You pay a monthly fee for using a solar system with a Power Purchase Agreement (PPA). You don’t have to make an initial investment.
The total cost of your solar system varies depending on the payment model you choose. A cash purchase requires the most significant upfront payment but results in long-term savings. On the other hand, solar leases and PPAs may cost more over time, even though they don’t require an initial investment.
Your option will impact your initial payment and long-term savings with solar energy. The payment option you select will influence your upfront costs and overall savings. Choose your payment option wisely to maximize your savings with solar power in the future.
What Affects The California Solar Panel Cost ?
Here are some key factors that can increase or decrease the cost of solar panels in California, including:
Size Of Solar System
The size of your solar system is a primary factor in determining its cost. A larger solar system includes more solar panels, a bigger inverter, and additional cables, and this naturally results in higher expenses. However, the size of your system should align with your home’s energy consumption and electricity bills.
For instance, the average California home consumes over 7,000 kilowatt-hours (kWh) of energy annually. Using this as a reference point, a 5 kW solar system could cover the energy needs of an average home. This installation typically costs around $8,785 after factoring in the federal tax credit.
Solar Incentives in California
California offers array of incentives to make solar power more affordable for homeowners. These incentives include:
- Direct Rebates: Homeowners can benefit from direct rebates, which reduce the upfront costs of installing solar panels.
- Tax Credits: There are various tax credits available, which can significantly lower the overall cost of going solar.
- State Tax Exemptions: California offers state tax exemptions, further easing the financial burden of solar installations.
- Net Metering: Net metering (NEM) allows homeowners to receive credits for excess electricity their solar panels produce, resulting in potential savings over time.
Types of Solar Equipment and Their Impact on Cost
The price of your solar system can be influenced by the type and quality of equipment you select. The latest solar panel models come in a variety of types, which offer different efficiencies and features. For instance, you have the choice between two common types: monocrystalline and polycrystalline solar panels. Since solar panels represent a significant portion of the total system cost, opting for cheaper panels will naturally result in a more affordable system.
This rule applies to other components of your system as well. For instance, systems that incorporate microinverters, power optimizers, or batteries may have a slightly higher initial cost.
Net metering
Net metering, or Net Energy Metering (NEM), is like a unique program for people with solar panels. It lets you send extra solar power you don’t use back to the electric grid.
California Public Utilities Commission recently passed a new version of net metering (NEM) 3.0, that reduces the financial benefits of the state’s net-metered system.
Payment option
Many solar companies offer commercial solar financing options for businesses and homeowners who may not have the means to pay the full system cost upfront, there are alternatives such as:
- Solar Loans: You can opt for a solar loan with manageable monthly repayments at a specific interest rate.
- Solar Leases: Another option is a solar lease, where you essentially rent the solar system from a provider and make monthly payments.
- Power Purchase Agreements (PPA): With a PPA, you also pay a monthly fee to use the solar system, typically with no initial investment.
The total cost of your solar system varies depending on the payment model you choose. A cash purchase requires the largest upfront payment but results in the most long-term savings. On the other hand, solar leases and PPAs may cost more over time, even though they don’t require an initial investment.
In essence, the payment option you select plays a significant role in determining both your immediate expenses and your overall savings from solar energy.
Why Choose Solar Energy?
Choosing solar energy in California can be beneficial for several reasons. Here are some key advantages:
Lower Energy Costs
Installing solar panels in your home or businesses can reduce your energy costs. The sun will power your home with solar energy instead of the electricity grid. As a result, you’ll see your electricity bill go down.
Solar panels can save you money on electricity each month and provide a return on your investment over time and a residential solar system can increase your home’s resale value by $15,000. If you decide to sell, you may recoup the entire cost of your solar panels.
Establish Energy Independence
By relying on solar panels to power your home, you significantly reduce your dependence on the power grid. Energy independence means you don’t have to worry about power outages or high electricity prices when demand is high.
Go Green
Solar panels are not only beneficial for your budget, but they are also advantageous for the environment. Solar panels help reduce electricity consumption.
This, in turn, decreases greenhouse gas emissions. These emissions harm the environment by polluting the air and water. They also contribute to climate change.
California Solar Energy Incentives or Rebates
Installing solar panels at home costs a lot, but many incentives are available to lower your expenses. First, the federal government offers a 26 per cent tax credit for solar systems installed in 2021 and 2022. Regardless of size, you can claim the full tax credit for your solar system. There is no limit to how much you can claim.
Some solar financing options specific to California are also available.
The state’s net metering program may be the most significant incentive for California homeowners. Under this program, net excess energy generation is credited to a customer’s next bill at the retail rate.
Should I Buy or Lease My Solar Panels?
When installing solar panels in your home or commercial solar for business, you can buy or lease the system. When you buy the solar panels, you can pay in stages or finance the system over 25 years.
Leasing is an attractive option, as it reduces your upfront cost and ensures you won’t be responsible for any future repairs. However, there are some downsides to consider as well.
First, when you lease your investment back, while another homeowner, when you rent your systems, will eventually own them outright and be done with their monthly payments, leasing means you’ll always have a fee.
Leasing a solar system will keep the resale value of your home the same. It makes selling more challenging since buyers would have to agree to take on your lease payments. In the long term, homeowners who buy their solar panels will see more savings over time than those who lease.
California Solar Panel Companies
A wide variety of solar panel companies are available. Many solar installers can even create a customized solar system to ensure your home is benefiting to the fullest.
When you are ready to invest in solar energy, be sure to do your research into the many California solar companies available in your area. Until then, Save On Energy offers a range of tips and guides to help you navigate the solar industry.
The History of Solar Energy in California
Solar energy in California dates back to 1976 when the state passed a law to create financial incentives for investments in solar technology. Just a few years later, the state passed a law preventing neighborhood associations from banning solar systems.
In 1996, California strengthened its commitment to green energy with the passage of the Electric Utility Industry Restructuring Act. In addition to deregulating the energy industry, it also enacted its net metering policies that allow customers to save by feeding excess solar energy back into the grid.
California has continued to invest in solar energy in recent decades, going so far as to require that all new homes be built with solar panels.
Because of these progressive policies, it doesn’t come as a surprise that California has such a high rate of residential solar power generation. The state also has seen significant investment from utility companies and has many solar farms throughout the state.
Important Solar Installation Factors to Consider
Before installing your solar system, there are a few essential things to consider:
- According to the U.S. Department of Energy, solar panels are most effective on north-facing roofs of between 20 to 30 degrees. They may need to be better suited to older roofs that must be replaced shortly.
- Consider the amount of sun your home gets. California gets much more sunshine than some states, making solar power particularly attractive. But it’s important to consider how much sun your home receives in your location.
- In some states, HOAs and other neighborhood associations may have restrictions around installing solar panels or require prior approval. However, California law prevents bans on solar panels.
Go Solar Today
Solar Earth provides several resources to assist you in installing solar panels in your house or place of business. Browse our customer site to learn more about your rights as a consumer, what to look for in a solar offer, questions to ask solar companies and much more.