California residential solar systems will cost less in the Golden State because of the abundant rebate and incentive programs available. The California solar tax credit can cover half the cost of installation.

In California solar installation is EXEMPT from property tax! Increasing the value of your property without the tax is a big plus!

Rebate amounts are dependent on the size of your system, your utility, how your system performs, and when you actually installed a solar system. The California Solar Initiative lasts until 2016, but as more solar systems in California are installed, the amount of the rebates decreases.

California solar rebates come in the form of a EPBB, an Expected Performance Based Buydown. The government will measure your systems expected performance and receive a lump sum payment once the system is fully installed. California solar incentives numerous, you have the option to apply for a PBI, Performance Based Incentive which will pay you every month over 5 years based on the utility companies report on the output of your system. If your system is enormous, over 30 kW then the PBI is your only option. A California solar company is well versed on the pros and cons of each option- this is a great question to ask when receiving estimates.

The EPBB program is important, because it rewards California solar systems that were installed correctly. The program supervisor physically checks the mount, orientation, wiring, shading, tilt, location based and all factors surrounding your system. If you had a sloppy install, you will suffer the consequences immediately as well as for 25+ years of diminished output. California solar installers with proper licensing and training often design and build to these specifications.

Southern California Solar rebate programs are different from those found in other parts of the state, it is best to search your specific city for any local rebates. Southern California Edison solar and Northern California solar PG&E operated under the same state guidelines, but the rebates vary depending on your specific city.

FEDERAL Solar Tax Credit:

Residential and commercial solar installations are eligible for a 30% tax credit by the year 2016. The credit is only good to the taxes you owe for the year the system was installed, it is not a straight deduction, although it can spread out over multiple tax years.

California Solar Power Commercial Rebates

Solar installations in California must be between 30 kW – 1 MW to qualify for a PBI, Performance Based Incentive. For 5 years you will receive fixed payments directly contingent to your systems output. Tax-exempt organizations receive a slightly higher incentive because cannot qualify for Federal Investment Tax Credits on their solar systems.

Commercial California solar energy rebates vary by which utility you belong to, Southern California Edison, Northern California PG&E, and San Diego Gas & Electric are the big three and each has different commercial solar energy incentives.

California Solar Installation Licensing Requirements

California Solar installers must be registered with the CSLB, Contractors State License Board. The C-46 Solar Contractor license is specifically for solar and covers active solar water and space heating systems, solar pool heating systems, and photovoltaic system To obtain a C-46 you must have four years of experience, pass the business and law and trade exam. The business and law exam are not very relevant to roof top installation, but they do demonstrate commitment to solar.

Other licenses you may see a California solar company with include:

A. General Engineering

B. General Building

C-4. Boiler, Hot Water Heating and Steam Fitting (for solar thermal systems)

C-10. Electrical (for photovoltaic only) Not tested in PV

C-20. Warm-Air, HVAC (HVAC systems that utilize solar energy)

C-36. Plumbing (solar thermal systems)

C-53. Swimming Pool (for solar pool heating).

Solar companies in California will have a variety of licenses, but ultimately the license tells little. An established company will have the references to supply to prove their craftsmanship. Remember, only one license per California solar company is necessary, and the California solar installer on your roof most likely is just certified.

California Solar Installation Certification

Many California solar installers in addition to being licensed are certified by NABCEP, the North American Board for Certified energy Practioners. This is a plus, NABCEP certification is an additional security measure to make sure the solar installer is reliable. The actual installer is the one certified, not the company. NABCEP is big on pairing installers with teachers and hands on training, which is great, and ultimately the most valuable aspect, the certification is good for 3 years, a multiple choice exam with 60 questions must be passed to get fully certified, you could pass the exam after a day of web research, but the effort counts!

DON’T INSTALL SOLAR IN CALIFORNIA WITHOUT READING THIS FIRST!

Considering Solar Energy in California? 13 MISTAKES to be aware of:

You see panels on roofs all around town, and are thinking is solar right for me? The answer could be YES! But for many it is NO!

Look, of course, I want you to be “green” and protect the environment, but if you don’t have $10,000- $50,000 for a California Solar Instalation, I don’t want to fool you. Solar energy in California makes sense when you own a home that gets good sun that you intend to stay in for a while, have a utility bill over $100, and understand that solar is an investment. Local, state, and federal government rebates, incentives and tax credits subsidize the cost, but the bottom line comes to an upfront, out of pocket investment that will take 5 to 10 years to payback, after that, you could have as much as 30 years of free energy.

1) Installing a system too big or small. Compare not only the prices of bids, but the size of the system, and the grade of panel to be used. Far too often only offsets 70% of the utility usage is offset, this can cost ten of thousands of dollars in missed savings. Installing too large of a system is surprisingly common, generated more energy is great, in theory, but when the utility company pays pennies on the dollar on the buy back… that sucks. Don’t forget to factor in adding a spa or kids leaving for college.

2) Outdated, less efficient panels. The majority of the cost of installing solar in California is in the panels, not all panels are created equal! In 2010 seemingly every month a panel generates more electricity per square foot and does it for cheaper! there is a huge difference between the panels of today and the panels of 2 years ago. Panels in manufactured in 2010 are almost twice as efficient, have the potential to last longer, and are cheaper. Solar installers have relationships with the likes of Sunpower, BP, Sanyo, etc etc and made agreements with installers without specifying a panel “shelf life.” Unfortunately, the facts are installers may have paid more for the panels than they are worth. Similar to being under water on your home, or reaching to the very back row to grab the milk that doesn’t expire in a week… same thing here!

3) Internet Purchase Mistakes. If you choose to Do It Yourself, or want to cut costs by buying panels or materials over the internet, be very careful!!! Consult with an electrician or the installer prior to making any purchases. Panels on the web are cheap, good deals can be had, but the MAJORITY are outdated. And if you are curious about any of those make your own panels, or DIY website seen on the web, read the real reviews, and if you are still interested send me an email, I have checked all of them out, save yourself $49, they are not feasible for 99% of the population, but I’ll stop short of calling them a Fraud. Remember shipping solar panels to California can also involve additional state tax.

4) Missing Warranty. California solar companies should provide 3 warranties: service, maintenance, and manufacturers. Solar is not cheap, and for a minimum one year, the company should make visits to the system and make sure it is performing at maximum efficiency. What happens if the company underestimated the amount of panels, and you are only generating 80% of the energy you need, will they ad another panel at cost/free? Will they come and show you how to clean the panels the first time? What if the installation causes your roof to leak? Now what? Who’s responsible and for how long? What about shipping? The labor of removing/reinstalling panels? Will your call be answered in 2 years, 20 years? Manufacturers guarantee the panels for a 20-40 years, but what exactly do they guarantee? Are their additional warranties you can buy? Ask these questions before you install!

5) Sunlight. You need the sun for solar, but you don’t get enough sun, but you really want solar… California solar conditions vary, depending on your proximity to the coast (fog) forest (trees). An honest, reputable company will break down how much energy you can anticipate to generate in not optimal conditions and then let you decide. Unfortunately, far too common consumers have systems installed that offset substantially less energy that anticipated; trees, fog, shading, roof orientation are the causes. Consider non traditional ground or tower mounts, new windows, wall insulation, wind power, efficient appliances, better light bulbs, more efficiency water heating as options… There are so many solar installers in California because most homes are perfect for solar.

6) Missed Rebates, taxes and incentives: It is YOUR responsibility to be aware of all California solar incentives you qualify for. The installer will help you and is knowledgeable in most cases, but identify the different, local, municipal, state and federal opportunities to save, and the deadlines associates with each. Some incentives are time sensitive and on a sliding scale so time is of the essence. Millions in solar incentives are not claimed every year.

7) Unprepared for an estimate: Solar Installers are also sales people on commission and most genuinely want to help you. Help yourself and help them by being prepared for the estimate by having the last 12 months of utility bills, being aware of what appliances use the most energy and seasonal swings in your usage. Knowing the ballpark market price range of solar will allow you to assess each contractor for quality.

Check the License!!!: If the contractor does not volunteer their license # you should be on Alert! If their marketing materials, business cards don’t feature it, ask why? It is a mandate in many states. Search ro contact the governing body and make sure the license holder has proper bond, insurance, is free of any liens, bankruptcies, or judgment. DO NOT TRUST any third party to do this for you. If an unlicensed installer falls of YOUR roof YOU may be liable!

9) Call References!!! So important…. Ask for 5 references, if the contractor balks, you should be on alert. References should be asked what would they do different when installing their solar panel system? The answer to that question will yield all you need to know in most cases.

10) Expectation in WRITING: Expectations are worthless, unless documented! A power survey applied on a day with good sun and few clouds should evidence the amount of energy the installer claimed to produce when the sun is striking perpendicular to the panel. Should the sun strike at an angle less than perpendicular to the panel surface, then energy output is downgraded by the cosine of the angle between the sunlight and the perpendicular to the panel face. Estimates you receive must highlight the peak generating capacity of the solar system under good sun conditions in kW. It is paramount for you to obtain the amount of energy a system will produce on an annual basis in kW hours. Energy produced directly correlates to sunlight received and should make room for seasonal variations, any annual output hypothesis should come with at least a 10% +/-.

11) Hidden Cost: Knowing what exactly is covered in your installation is obvious, but all too often we receive feedback of last minute revelations. Be aware whether sales tax is being charged, who pays for the permit, are their fees for the work and time necessary to obtain the permit? Are their additional warranties or insurance you can buy and shouldn’t those be included? Is their any fees associated with connection your utility?

12) Buying solar part of a group: Unfortunately, this is a for profit market tactic. Some folks have installed solar through a group/coop and are happy, however market forces dictate that competition, aggressive pricing and getting several quotes is the best way to get a quality and affordable solar installation. The problem with the “group buy” tactic, is the installation is EXCLUSIVE to one company, there is no competition, and the bulk discount is offset by the fees paid to the organizer. Connect with HOMEOWNERS, (not companies), in your area and search for an installer together. Get several estimates, compare notes, if you have positive feelings about the same installer, approach them for a 2 for 1, 3 for 1, etc discount. See if there are homeowners waiting to connect in your area.

13) Know what to Expect: The California solar company you chose will begin by finding your roofs anchor beams, and connect “stand-off” posts that will be attached to racking where the solar panels will rest. There are new mounting techniques that don’t require penetration to the roofs anchor or support beams, but most solar installers will connect to stable roof beams and use sealants and flashings to prevent water damage. Once the panels are secured, they are wired together and the wiring is secured and passed down to the inverter. Your system design should take into account where the inverter will be mounted; most are by the utility meter, or in a garage. Efficient wiring is important, you will lose DC power if your wiring zig zags around your house and roof before it reaches the inverter.

14) More resources: California Solar Institute, California solar Association, California Solar Initiative, and many more…

15) Competition and Price: HOW DO YOU GET THE BEST PRICE ON SOLAR IN CALIFORNIA? Get 10, (TEN) different estimates. When you are able to determine the market price for the SAME size system, you have a benchmark from where to assess quality from. When solar companies compete–you save. Make your intent to install solar known; the companies who want your business will be reflect that desire in their bid. Solar in California is not cheap; paying a rising utility bill isn’t either. Running a business, workman’s compensation insurance, tax, etc leads to natural overhead. By now, everyone knows solar is expensive to install, but is a very secure investment with a strong return. 10 estimates is really too much, and borders on abusing the willingness to do a free site survey, but the point about market awareness and competition holds true. If you are interested in installing a solar system in California, this is a great place to start.

If you spend $175 per month for electricity, then you over 25 years o will pay over $70,000 including inflation at a modest 2.5%. Solar is a wise investment! We are a group of unbiased environmentalists, scientists, educators, and researchers who will always be honest and deliver facts, about price, panels, contractors, estimates, margins, and we do it for the interest of the environment! The web is full of great info, but there sure is a lot of it and not all is for your interest- we have helped 750 homes go solar in 2009! Please use our free zip-code search directory, connect to form a solar group buy or call now if you have any questions or need a referral to an established, licensed contractor 866-491-8524 FREE for the first 5 minutes (donation optional).

Our Referral policy: we only refer to California installers who are licensed, insured, certified and bonded and agree to provide up to 5 references of customer satisfaction upon your request. Our match criteria includes location relative to yours for travel efficiency purposes. We ask that every contractor you interact with to be reviewed written or verbal, and special note made of any pluses or minus uncovered.

Future of Solar in California

There are only 12 countries in the world which consume more solar energy than the state of California. California solar rebates and tax policy is extremely friendly to emerging technology, but it needs to pick it up! Cali was ahead of the game in the mid 90’s when it first began to introduce incentives, but now those incentives are winding down and not as impactful as they once were.

California solar energy policy needs to set the standard for energy buy-back rates around the country! Currently California home solar system owners pay retail on power from the utility are paid pennies on the dollar for the excess energy sold back to the utility… if solar is to make a huge impact on American homes, this buy back rate needs to be fair, and allow homeowners to substantially capitalize not only the energy they generate, but roof space… make rooftops into mini factories, that allow home owners to monetize their property and the environment will benefit!

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