Thinking about installing solar panels for your home or business in California? It’s a smart investment that can save you tens or even hundreds of thousands of dollars over the next 25+ years.
But solar panels aren’t cheap, and there’s a lot of misinformation out there that can leave you wondering whether they’re really worth it.
In this guide, we break down the pros and cons of solar panels so you can decide for yourself whether they’re worth the investment.
Pros of Solar Installation
Slash Your Power Bills and Beat Rising Utility Rates
The number one factor to consider when deciding whether solar is worth it is how much you spend on electricity. The more you spend, the more value solar will provide.
We pay the second-highest electricity rates in the country in California, and the truth is that it’s only going to get worse. PG&E has increased rates by 121% since 2014, which is more than three times California’s 36% inflation rate.
Meanwhile, we’re using more electricity than ever.
If you’ve lived on the North Coast for a while, you can probably remember a time before we needed AC up here. Now, you can’t get through the summer without it.
Plus, everything is going electric. Electric cars, heat pumps, and induction cooking are the future. As electrification takes over, it will impact your electric bills.
Going solar now protects you against all of this. You’ll:
- Save money on your electric bills
- Be protected against utility price hikes
- Save tens of thousands of dollars over the next 10-20 years
Keep the Lights On During Outages with Solar + Batteries
It’s no secret that the California electric grid is under a lot of pressure. There’s huge demand for electricity right now that’s growing every day. At the same time, extreme heat waves, wildfires, and earthquakes all put the grid at risk.
That means longer and more frequent power outages.
If you don’t already have a plan in place, now is the time to start thinking about it, and solar plus battery backup is the best solution.
Solar panels with battery backup can keep essentials like your lights, refrigerator, fans, and medical equipment running so you can stay safe and comfortable during a blackout.
Save with Tax Incentives (Before They’re Gone)
Right now, California solar panel installations are eligible for huge tax incentives, including:
Federal Solar Tax Credit – Save 30%
You can save 30% on your solar installation costs with the federal solar tax credit. But this incentive could disappear soon. Congress is voting on new legislation that would eliminate the federal solar tax credit after 2025. Don’t miss your chance—schedule a free consultation today to lock in savings.
Solar Property Tax Exclusion
Solar panels can increase property value, but in California, they won’t increase your property taxes, thanks to the Active Solar Energy System Exclusion which excludes solar panels from property tax assessments. This incentive will sunset on January 1, 2027.
Cons of Solar Panel Installation
Upfront Costs are High
There’s no getting around it—solar panels are an investment. A home solar panel installation in California can cost anywhere from $10,000 to $30,000 or higher, depending on the size and complexity of the installation.
But the long-term savings are usually worth it. Most homeowners break even in under 10 years and go on to save tens of thousands over the life of the system.
Plus, incentives can significantly reduce your costs. If you go solar before the end of 2025, you’ll save 30% with the federal solar tax credit.
We also offer flexible financing options that allow you to pay for your installation over time. In many cases, you can finance your installation for $0 down and be cash-flow positive from day one.
Solar Buyback Rates are Lower with NEM 3.0
NEM 3.0 has changed how solar owners are compensated for the excess electricity they send back to the grid. Under this new rule, utility companies pay solar owners less for the electricity they send back to the grid, which reduces the return on investment for grid-tied solar systems.
However, battery storage can help you make the most of NEM 3.0.
By storing your solar energy instead of sending it back to the grid, you can use it during peak hours, when electricity rates are highest, and reduce your reliance on expensive utility power.
Batteries add to your installation costs, which is important to keep in mind. But, they also qualify for the 30% solar tax credit and provide many benefits, including invaluable backup power during a grid outage.
The Final Verdict? Solar Is Usually Worth It
In most cases, solar panels are worth it in California.
But with NEM 3.0, it’s a little trickier to make solar work. Your system needs to be sized correctly for your usage since you won’t get paid well for sending excess power back to the grid, and it’s important to consider battery storage.
At Six Rivers Solar, we install custom solar power systems tailored to your needs. We will lay out your costs and expected payback period (how long it will take for your system to pay for itself based on your projected monthly savings) so you can look at the facts and decide whether solar is right for your home or business.
