Is solar power still a good investment for Southern California, and particularly, Coachella Valley residents in 2023? There are myriad reasons for installing a solar power system in your home. But are all of those relevant to you? After installing thousands of systems for residents from Palm Springs all the way to Blythe, California, we are very familiar with all the reasons. But so you do not have to spend days reading to find the ones that matter for your situation, we’ve decided to narrow it down to the top five reasons solar power makes more sense than ever for your Southern California home. Let’s get started.
Let’s start with what is probably at the top of everyone’s priority list. Does installing solar panels on your home make financial sense? Will the system actually save you money? I’m pleased to say yes! We can confidently say that you will already see true and vivid savings after the first month of installation. Without solar panels in the Coachella Valley, your electric bill could be closing in on $650 a month. After solar installation, you are most likely looking at a monthly bill of around $12 a month. We did not accidentally leave off a 0. That is twelve dollars a month. That is what we mean by vivid savings.
Annual savings increase each year as utility rates increase. A solar system protects you from utility rate increases, which historically are 10-15% per year. Month over month of this kind of savings will most likely require the use of the calculator on your phone. Once you’ve totaled that up, add the fact that the average lifespan of a solar power system is 40 years. And 20 of those years are under warranty. Our experience shows that our average homeowner saves about $200,000 during the first 25 years of their solar panel system. Let me ask you a question. Are you willing to turn down $200,000?
Here is just one real-life example of the savings solar panels can bring. John and Susan live in a three-bedroom house in the Coachella Valley. They were paying an average of $150 per month for electricity. They decided to install solar panels on their roof, at a cost of $20,000. After installation, they noticed that their electricity bill dropped to $50 per month, with some months being completely covered by the solar energy they were producing.
After five years, they had saved $9,000 on electricity costs. Over 25 years, they will save more than $45,000. Plus, their energy savings will continue to grow as electricity rates continue to rise.
Not only did John and Susan reduce their carbon footprint, but they also made a smart financial decision by investing in solar power. They saw a return on their initial investment in just five years, and they will continue to save thousands of dollars on energy costs over the life of their solar panels.
Federal Tax Credit
Sticking with the financial theme, perhaps you want to save that kind of money on your electricity bills, but you are unsure of how you could afford the upfront costs of installation. There is an answer, but only if you act quickly. Right now, there is still available a Federal Solar Tax Credit. This credit, called the ITC, allows homeowners in the state of California to deduct 30% of the cost of their solar panel installation from their federal taxes. This means that if a homeowner installs solar panels for $20,000, they could claim a tax credit of $6,000.00.
So, if you are debating the cost of installation against your budget, this one is for you. Also, if the solar panels are made in the USA, the ITC is 40%. However, the ITC is not the only financial incentive in town. Some states and localities offer their own solar tax incentives, which can be combined with the Federal Solar Tax Credit to maximize savings. Consulting with a tax professional can help you understand how to take full advantage of these tax credits and apply them to your year-end taxes.
Everyone knows that renovations and updates increase the property value when you are ready to sell your home. Just like remodeling the kitchen or updating the bathroom, adding a solar panel system to your home increases your home’s value. Check with appraisers in your area. They will be able to give you statistics for your particular neighborhood.
Imagine a family looking to buy a home in your area. You have just placed your house on the market, and your neighbor has done the same. But his house has a new solar panel system installed, and he can offer the potential buyer instant savings on their utility bills. Your neighbor is much more likely to sell his house before you sell yours, and at a better price for him.
Besides the financial benefits, one of the largest benefits of adding solar panels is their environmental impact on your area. Every kilowatt you produce is fewer greenhouse gasses in the air. Think of it like this: The sun powering your home is the equivalent of fewer combustion engine cars on the road. Talk about a win/win!
Plus, you are taking some of the strain off the big utility plants by producing your own electricity. The less strain on the plants, the few plants need to be built, and the better for the environment.
Hand in hand with the environmental benefit above is energy independence. Have you had to deal with rolling blackouts and brownouts in the past? With a solar power system, you are not dependent on the utility company for your daily power. In Southern California, with all our sun, you will need nothing from the power company during the day. This is less strain on the system at large and more assurance that there will be plenty of power for you.
Solar power systems don’t tend to come with battery backup systems, so you will still pull from the power company at night. However, if you choose to add a battery backup to your system, you can be confident that you will be able to run the important things in your home even during a complete power outage in your area.
Planet Solar Makes Going Solar Easy!
These are all great reasons to call your local solar contractor and ask for a proposal on how you can become energy independent, financially independent, get your tax credits, and help the environment for your family and your kids. And keep in mind that in the Coachella Valley, your return on investment is only five years, whereas, in other areas, the national average is ten. One other item to mention is our production guarantee. Planet Solar guarantees the solar system will produce what it is supposed to produce each year for 12 years, or we will make up the difference!
If you have any questions about these benefits, call one of our solar experts. We are ready to help you analyze your home, consumption, and situation. We are happy to provide all the information you will need to make an informed decision on whether or not solar is right for you. We have two locations ready to serve you. If you are in the Coachella Valley area from Palm Springs to Blythe, call us at (760) 341-1413. Or, in the Greater Fresno Area, call us at (559) 228-9245.
Since 2007, Planet Solar has been a pioneer in the solar panel and home battery installation industry. Our team consists of seasoned solar professionals with 30+ years in the home improvement, energy conservation, and technical fields. Our company prides itself on our knowledgeable, friendly, and professional solar consultants, who will help you with all your solar needs. In Planet Solar, you have found a solar installer you can trust.