HOME SOLAR OPTIONS

In today’s world, switching your home over to solar power is not just about saving money. Though, with the price of electricity, this is a huge reason to switch to solar. But, another good reason to switch to solar is dependability. As long as you have an energy storage solution, or battery system, to where you can store your electricity for when you need it, then dependability is also a big reason to switch to solar power. Especially if you live in a state like California, where PG&E powers most of the state, and they turn off your electricity to protect against causing fires because the state has had so many wildfires. If you switch to solar, and have a system to store the electricity, not only can you save a fortune on electricity costs, you can have energy available when the power goes out as well. Stop following your kids around turning off the lights, and set your thermostat to a comfortable level. It’s unfortunate with the cost of electricity, and the high cost of living, that we forget that life is meant to be comfortable, and not a constant struggle to save costs just to be able to pay the bills each month.

Why Should You Switch To Solar?

• Save Money • Increase Your Home’s Value • Help the Environment • Have Reliable Electricity When You Need It • Recieve A Large Tax Credit

Solar Electricity Saves You Money

Switching to Solar dramatically reduces, and may even eliminate your home electricity bill entirely. In fact, you may even get money back, depending on your electric company. Every year the electric companies raise prices, having solar will make it so that you are not affected by their constant price gouging.

Adding Solar Increases Your Home Value

Going solar also increases your home’s value. Home buyers look for homes with solar so they know they will save hundreds of dollars per month or more on their energy costs.

Going Solar Helps the Environment

We all want a healthy and clean atmosphere, and switching to solar helps the environment. Feel good about doing your part in helping the environment for generations to come by moving over to the solar energy club. By switching to solar, you will eleminate three to four tons of carbon emissions each year.

Solar Power Gives You Dependable & Reliable Electricity

There’s nothing worse than hearing those thunder clouds, or seeing snow start to fall, and knowing that you may lose power. You can either get a whole house generator, or switch over to solar (or both) to have reliable and dependable sources of electricity. There is nothing worse than losing power when you need it the most!

Adding Solar May Give You A Large Tax Credit

Federal, State, and local incentives across the country are available for those that switch over to solar power as an incentive to switch to solar. You may get tens of thousands of dollars back on your taxes to help offset the startup costs of switching over to solar power.

Solar Options For Your Home

When you start looking into getting solar installed, it can be overwhelming. There are door to door people trying to sell you everything under the sun, there are countless companies online that do the same. The real answer is you can buy and own your own solar equipment, you can lease it from a reputable company, or you can sign up for a power purchasing agreement. Let’s go over these options to provide some clarity to help you make the best decision for your situation.

Solar Ownership

When you buy solar equipment, you own it. You decide who installs it. You decide who maintains it. You decide who works on it. This is the simplest way to break into solar. But, the big hurdle will be the cost. There are options here as well. With the solar cash option, you buy the solar system, just like you would for any other big ticket purchase, like buying a car. You will work with a solar dealer, and they will help you to decide on what you need to buy, and get it ordered, and then install it for you. In this purchasing method you will have payments due typically at a few different steps. You will provide a down payment to get the process started, then a payment when the solar panels are ordered, and a final payment once it is all installed and working. With the solar cash option, you can pay the money directly, or you can finance the purchase through a bank, or the solar company you are working with if they have that option available. Being able to pay those up front costs over time makes the dream of switching to solar an affordable option for most people. In my situation, for example, I was paying $850 a month to my price gouging electric company. Swithing to solar would more than pay the payment to finance the biggest and best solar solution on the market available for my home type with a huge savings each month on top of that as well. It’s a smart decision that will save me an enormous amount of money each month. By purchasing and owning the solar system on your home, it’s yours. You get all the benefits from it. This also makes you eligible for the tax rebates and other incentives that are available.

Solar Ownership Pros:

You may qualify for the rebates, incentives, and tax savings Lower energy costs Potential increase in property value You might qualify for solar net metering, where the electric company can buy the extra energy that your solar system produces that you don’t use You own it, it’s yours!

Solar Ownership Cons:

High upfront costs, but financing may be an option to pay over time You pay the maintenance or upkeep costs

Solar Lease

A Solar Lease is an option where a third party owns the solar equipment. There is usually no up front costs in this option, and they will get it installed for you. With a solar lease you would typically pay a set monthly rate for your solar panel system, but you would receive free electricity from the panels, which offsets the monthly cost of the lease. Most states do allow solar leases, but it is not allowed in all locations. Check your local rules and regulations to see if this option is available for you.

Types of Solar Leases

There are two options available for leasing solar equipment, a capital lease, and an operating lease. Each one has their benefits and draw backs, so it’s important to understand what each least type offers so you know which one is right for you.

Capital Lease

With a capital lease, you are able to take advantage on all of the tax incentives and depreciation benefits that you get with solar. The monthly payments for this type of lease are typically higher than the operating lease option. When the lease is over, you will usually have the option to buy the system from the leasing company.

Operating Lease

With an operating lease, the leasing company owns the solar system, but you would pay a monthly fee to the company you sign the lease contract with. With this type of lease, all of the tax incentives and depreciation benefits go to the leasing company. This may be a good option for you if you know you wouldn’t be able to use the tax benefits that are available when you switch to solar. At the end of the lease, you can either buy the solar system from the leasing company, or you can renew the lease terms.

Solar Leasing Pros:

Low, or no upfront costs No maintenance or upkeep costs Lower energy costs Potential increase in property value You might qualify for solar net metering, where the electric company can buy the extra energy that your solar system produces that you don’t use

Solar Leasing Cons:

You don’t own the equipment You may not qualify for the rebates, incentives, and tax savings

Solar Power Purchasing Agreement (PPA)

A solar power purchase agreement (PPA) is an agreement where a solar company arranges for the design, permitting, financing, and installation of a solar array on a your house or property. They then sell the power generated to you, usually at a fixed rate. This rate is usually cheaper than your local utility company’s electricity rates, which saves you money each month. The payments within a PPA agreement are based on the amount of energy that the solar array produces that you use each month. This is where you will save a bunch of money, as long as you negotiate a great rate that is significantly lower than your power company’s rates. In this scenario, the company receives the income from the sales of the electricity to you, as well as any tax credits and other incentives from state, federal, or local incentive programs that are available to them. In some instances, you can negotiate the claim to the “green attributes” with the company you are entering into a PPA agreement with, to give you the ability to retain the Solar Renewable Energy Credits to give you the reduction in income taxes you would like. With a PPA, the term is usually signed for ten to twenty five years. During the agreement period, the solar provider is responsible for the operation and maintenance of the system. You may even have an option to do an early buy out, if you decide at some point that you would like to do that, so you would own the system and no longer be charged for the energy usage of the solar unit. If you are interested in this, it may be a good idea to work that into the contract with a set price at fair market value, so they won’t try to jack up the cost if you approach them to buy it in the future. The great part about this option, is that you typically pay no money for the installation or maintenance of this type of solar system. You just pay for the electricity you use from the system directly.

Solar PPA Agreement Pros:

Low, or no upfront costs No maintenance or upkeep costs Lower energy costs Potential increase in property value

Solar PPA Agreements Cons:

Probably no tax credits, incentives, rebates, or tax depreciation savings

Things to Consider When Planning the Switch to Solar

Placement of the Solar Panels Roof Replacement Energy Usage Forecasting

Solar Panel Placement Options

One thing to consider when you start planning your switch to solar is where you would like to place the solar panels. They have many different options available, you could place them on your roof, on a detached garage, made into a car port like you see in parking lots, on your land, or even built into roof tiles.

Roof Replacement or Repair Before Installing Solar Panels

If you know your roof is aging, or is in need of repair, you may want to consider getting this done before you add solar panels to your roof. Otherwise you will have to pay the cost for the solar company to remove the solar panels for the roofing company to repair or replace the roof, and then pay them to put the solar panels back together. It may be a good idea to go ahead and do those repairs now.

Energy Usage Forecasting

If your like me, you are using less energy now than you typically would because of the ridiculous over priced cost of electricity. If you are planning on going solar, you should think about how much energy you aren’t using that you wish you could be using, so that you plan the new solar usage accordingly and get enough panels to supply the energy you need. Will you keep your house warmer in the winter, and cooler in the summer, if the energy is free and available? I know I would. Add that to your discussions with your solar company to make sure your solar system is sized for what you want.

Electricity Cost Options Comparison in California

California’s electricity market offers a range of options for consumers, from traditional utility plans to renewable energy programs and community-driven alternatives. With rising energy costs and a strong push for sustainability, understanding these options is crucial for residents looking to balance affordability, reliability, and environmental impact. This article explores the key electricity cost options available in California as of May 2025, comparing their features, costs, and benefits.

1. Traditional Utility Plans

California’s major investor-owned utilities (IOUs)—Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E)—provide standard electricity plans. These utilities offer tiered and time-of-use (TOU) rate structures: Tiered Rates: Customers pay different rates based on their monthly electricity usage. Lower usage falls into cheaper tiers, while higher usage incurs higher rates. For example, PG&E’s baseline tier might charge around $0.25 per kWh, but exceeding the baseline can push rates to $0.40 per kWh or more. Time-of-Use (TOU) Rates: Rates vary by time of day, with peak hours (typically 4–9 p.m.) costing more (e.g., $0.50 per kWh) and off-peak hours (e.g., midnight to 6 a.m.) costing less (e.g., $0.20 per kWh). TOU plans encourage shifting usage to off- peak times, such as running appliances at night. • Pros: Familiar structure, reliable service, and no additional enrollment needed. • Cons: Higher rates during peak hours and limited renewable energy options in standard plans. • Cost Example: A household using 500 kWh/month on PG&E’s TOU plan might pay $150–$200, depending on usage timing and tier.

2. Community Choice Aggregation (CCA) Programs

CCAs allow local governments to procure electricity on behalf of residents while the IOU handles delivery and billing. Examples include Clean Power Alliance (CPA) in Southern California and MCE Clean Energy in the Bay Area. CCAs often emphasize renewable energy and may offer competitive rates. Rate Options: CCAs typically provide multiple plans, such as 50% renewable, 100% renewable, or default plans matching the utility’s mix. For instance, CPA’s 100% Green Power plan might cost $0.30 per kWh, slightly higher than the default 36% renewable plan at $0.27 per kWh. Opt-Out Flexibility: Residents are automatically enrolled but can opt out to return to the IOU’s standard plan. • Pros: Access to greener energy, often at competitive rates, and local control over energy sourcing. • Cons: Rates vary by region, and some plans may be pricier than utility defaults. • Cost Example: A 500 kWh/month household on CPA’s 100% renewable plan might pay $150, compared to $140 for the default plan.

3. Renewable Energy and Solar Programs

California’s commitment to clean energy has spurred growth in renewable energy options, particularly solar. These include: Rooftop Solar with Net Energy Metering (NEM): Homeowners with solar panels can offset their bills by generating electricity and receiving credits for excess power sent to the grid. Under NEM 3.0 (effective since April 2023), credits are tied to the time of day and are lower than in previous iterations, averaging $0.05–$0.10 per kWh during peak hours. Green Rate Plans: Utilities like SCE offer optional 100% renewable plans (e.g., SCE’s Green Rate), which source electricity from solar, wind, or geothermal. These plans cost 10–20% more than standard rates. Solar Choice Programs: CCAs and utilities offer “virtual” solar plans where customers pay a premium (e.g., $0.02–$0.05 per kWh extra) to support solar projects without installing panels. • Pros: Reduces carbon footprint, potential bill savings with rooftop solar, and supports renewable infrastructure. • Cons: High upfront costs for solar installation (e.g., $10,000–$20,000 before incentives) and reduced NEM credits under new rules. • Cost Example: A household with rooftop solar might reduce a $200 bill to $50–$100 after credits, while a Green Rate plan might cost $160 for 500 kWh/month.

4. Low-Income Assistance Programs

California offers programs to reduce electricity costs for eligible low-income households: CARE (California Alternate Rates for Energy): Provides 20–35% discounts on electricity bills for qualifying households. For example, a $150 bill might drop to $100. FERA (Family Electric Rate Assistance): Offers 18% discounts for larger, low- income households (e.g., families of three or more). Energy Savings Assistance Program: Provides free energy-efficient upgrades, such as LED lighting or weatherization, to reduce usage. • Pros: Significant savings for eligible households and no impact on service quality. • Cons: Income verification required, and not all households qualify. • Cost Example: A CARE-eligible household using 500 kWh/month might pay $90–$120 instead of $150.

5. Demand Response and Energy Efficiency Programs

Utilities and CCAs offer programs to incentivize reduced energy use during high- demand periods: Demand Response: Programs like PG&E’s Peak Day Pricing reward customers for cutting usage during peak events (e.g., hot summer days). Participants might earn $50–$100 annually in bill credits. Energy Efficiency Rebates: Rebates for purchasing energy-efficient appliances (e.g., $100 for an ENERGY STAR refrigerator) or upgrading home insulation. • Pros: Lowers bills and supports grid stability. • Cons: Requires active participation and lifestyle adjustments. • Cost Example: A household cutting 100 kWh during peak events might save $20–$30 per event.

Key Considerations for Choosing an Option

Usage Patterns: TOU plans benefit those who can shift usage to off-peak hours, while tiered plans suit low-usage households. Environmental Goals: CCAs and renewable plans are ideal for prioritizing sustainability. Budget: Low-income programs and efficiency rebates help manage costs for budget-conscious households. Location: CCA availability and utility rates vary by region, so check local options.

Conclusion

California’s electricity market offers diverse options to suit different needs, from cost-conscious plans to renewable energy solutions. Traditional utility plans provide reliability, CCAs offer greener choices, and solar programs empower homeowners to generate their own power. Low-income and efficiency programs further enhance affordability. To choose the best option, evaluate your energy usage, budget, and environmental priorities, and explore offerings from your local utility or CCA. For the latest rates and programs, visit your utility’s website (e.g., pge.com, sce.com, sdge.com) or check communitychoiceenergy.org for CCA options. El Dorado County Home Builders highlights products and services that you might find interesting. We frequently receive free products from manufacturers to test. This does not drive our decision as to whether or not a product is featured or recommended. If you click a link on this page, then go on to make a purchase, we might receive a commission – at no extra cost to you, and this does not impact the purchase price of any products that you may purchase.