Solar Benefits
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“How much will I save?” and “How much will it cost me?” are the two most frequently asked questions I receive.
With Solar, you are replacing you PG&E bill with a lower solar bill, or if you buy the system outright, no solar bill.
Since your solar payment typically never increases, it is like locking in the price of gas at $3 per gallon for decades to come. The savings begin immediately and increase over time, often amounting to well over $100,000 over 25 years.
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With the passing of the Big Beautiful Bill in 2025, the residential solar tax credit has now fully expired.
However, the tax credit is still available for corporations that offer alternatives such as Power Purchase Agreements.
Purchases are still a viable option depending on what Utility company you are using (e.g. PG&E and SCE). Whether you pay cash or finance the purchase, there are still many great options.
Another great option is a PPA. Since companies can still get the tax credit they can (and do) pass that savings onto you in the form of a lower monthly payment.
Either way, it still makes sense to get away from the brutal rate increases the major utilities impose.
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California utility companies monopolize electricity. Depending on where you live in the state, you might pay 30%-60% more per month than the nationwide average for electricity.
In 2012, PG&E customers paid about $0.12 per kWh for electricity in Tier 1.
By 2022, the Tier 1 price had risen to $0.33.
That’s a 175% increase over 10 years.
NOW IT IS $0.42.
To keep their monthly bill level year to year, many customers are forced to reduce their electric usage. This is unfortunate and unnecessary.
If PG&E’s rates increase by 7% per year (we’re being conservative!) and you pay $150/month for electricity now, here is your future without solar:
2023: $150 per month / $1,800 per year
2028: $210.38 per month / $2,524.56 per year
2033: $295.07 per month / $3,540.84 per year
2038: $318.96 per month / $3,827.52 per year
2043: $397.99 per month / $4,775.88 per year
2048: $493.98 per month / $5,927.76 per year
Total spent over 25 years: $147,983.40
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The California power grid is old and poorly maintained. Frequent wildfires in Northern California have made power outages a way of life for many homeowners.
Battery backup provides protection against blackouts. It is important to be informed about the different battery options available, what they will back up and for how long.
Questions to consider:
How often does my power go out?
What is absolutely necessary to back up? (Refrigerator, Lights, CPAP machine)
Is it important to back up my air conditioner?
Many solar companies offer two options:
1) A home backup will provide backup power during blackouts. The battery will directly support specific circuits (breakers) in your main electrical panel. You will have a choice about which circuits to back up, and it is possible to back up your entire home with adequate battery capacity.
2) A less expensive “grid-tied” battery that only provides power during the night to save money. This option will not backup your home during a power outage (the battery does not directly support individual circuits). If you live in an area that does not often lose power, the grid tied option may be a beneficial and inexpensive route.
It is critical to know if your battery is set up to offer backup protection or just being installed to offset nightly usage. For a comparison of different options specific to your home, contact me.
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Nearly one in three U.S. Households reported difficulty paying their energy bills. As a result, many suffer from a reduction in quality of life and increase in potential health risks associated with exposure to extreme temperatures.
Solar provides a long term solution to this tragic situation, providing homeowners access to much needed electricity at prices far below what the utility charges.
No one should have to come home from a hard day's work to an overheated home. You should not have to feel anxious using your appliances or fear that you won’t be able to afford your energy bill.
It is common for homeowners to oversize their solar systems so they can generate extra electricity and live more comfortably.
You can achieve the healthier and happier lifestyle without having to pay anything out of pocket too!
Solar can give homeowners access to energy at rates well below what the PG&E them, giving them the power to reclaim that lost quality of life they deserve, while saving them their hard earned money.
Do not let your lifestyle be negatively impacted by the outrageous, unaffordable cost of energy from the utility.
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“Oh, my lord, we are in a very bad situation compared to even the worst case that we anticipated.”- Siva Gunda, vice chair of the California Energy Commission
“Went right up to the edge of breaking our grid, but it didn’t,”- Gavin Newsom
With record setting temperatures during the summer of 2022, California’s grid was at the brink of collapse. The facts are clear: California’s outdated grid structure is not equipped to meet the state’s current energy demands. Camille von Kaenel with Politico.com writes: “What’s needed now, officials say, is even more investment by the state akin to the Marshall Plan that rebuilt Europe after World War II.”
PG&E has current plans to put ten percent of its transmission and distribution lines underground at a staggering cost of $15 billion. Customers will inevitably be faced with increasing electricity costs to offset PG&E’s investment, as well as staggering annual maintenance costs for the rest of the state’s aging grid.
Thankfully, advancements in solar and battery storage technology challenges the outdated model of electricity generation and distribution that traditional utility companies depend upon. As an industry, solar provides the privatized, capitalistic version of the “Marshall Plan” needed to secure California’s energy future.
It is a fact that fifty percent of energy generated through traditional methods is lost in transmission on the grid, while onsite energy production and storage not only protects homeowners from grid instability, but can achieve rates of efficiency in the high ninetieth percentile. Additionally, batteries can be utilized to release energy onto the grid during periods of extreme stress in the summer when the California grid is “on the edge of breaking.”
It is part of our American culture to strive for independence and self-sufficiency. It is time to get rid of the monopolized concept of power generation by equipping our homes and businesses with technology that allows for freedom and choice.
We are facing a deteriorating grid founded on an outdated technological model. Just as the landline telephone gave way to the cell phone, the shift away from the conventional utility monopolies towards an individualized model of power generation realized through solar and storage technologies is inevitable.
Some frequently asked questions
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The short answer: no.
We frequently hear people say “I can’t afford solar.” This is a common misconception based on installers who only provide cash purchase options.
As an independent solar consultants, I have access to a variety of options (including purchases and PPAs) to go solar for $0 down.
With long-term warranty coverage, solar and battery-backup are less expensive and longer lasting than ever before.
How is this possible? Simple, all costs (material, labor, permitting) are all rolled into your monthly payment so you don’t need to pay anything up front.
This is why so many of our customers tell us the choice is a “no-brainer”.
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With the passing of the Big Beautiful Bill, the residential tax expired. This does not mean purchasing solar does not make sense.
Depending on what electricity utility provides you with electricity (e.g. PG&E) , it can still make a lot of sense- particularly with 30yr warranties on parts and labor (including the battery).
Power Purchase Agreements (PPA) are also another alternative. They allow you to get the benefits of solar without having to take on debt or pay anything up front. (See my Blog Post Here)
However, it is very important to choose the right PPA company.
Whether its cash/finance/PPA, it is important know the strengths and weaknesses of each–the companies you can have confidence in, and the companies to avoid.
This is where an independent agent is very useful. I have extensive knowledge of all the options and can help you make an informed decision.
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Since there are no out of pocket expenses, customers start seeing savings in the first year. How soon they reach the “break even point" depends on which type of program you choose.
Cash Purchases: Typically offer the fastest payback, usually around 6-10years depending on how much the utility raises their rates.
Financed Purchases: With different loan terms to choose from, you could pay your system off in as little as 10yrs, or if you just want the lowest monthly payment that never increases, the 25yr term is optimal. Since there are no prepayment penalties, you can pay it off whenever you want.
PPA/Lease: With zero investment, this option also can show great savings but is not typically considered as a traditional investment since the solar financier owns the system.
Solar is a long-term investment for your home, and if you prefer to pay cash outright, the return on investment is often shorter than one may think.
One lesser known fact is is that solar increases the value of your home by at least 4.1% of the total property value according to Zillow. This means that even if you sell your home in year 4, you can recoup your investment.
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Absolutely.
With financed, leased, and PPA options, you can get a solar system and full battery backup installed for $0 down. The low monthly payment replaces you high PG&E bill so you start saving right away..
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Some homeowners have heard stories about difficulties selling a home with solar. What causes this and is it avoidable?
Where does this idea come from?
The most common cause: miscommunication. Home sellers are often unclear about how transferring their system works and buyers don’t know how their system will work.
Failure to notify the solar company in advance about the home sale. Most finance and lease companies request 30 days notice to begin the transfer process. Failure to do this can create a rush at the end and increases the stress of all parties.
Old leases. Thankfully, most companies no longer offer leases- replacing the with the more homeowner friendly PPA. (See my blog post on this)
Many realtors still assume all solar leases work like this).
As solar consultants, clear communication is our #1 priority. If you plan to sell your home in the near future, we will present you with solar options that are fully and easily transferable.
Cash purchases are easy: the incoming homeowner inherits your system.
With financed purchases, PPAs, and leases, the incoming homeowner will inherit the same monthly payments and benefits that you will receive from the solar, including all warranties, maintenance, monitoring, and insurance on PPAs and leases, and all warranties on a financed purchase.
Most financiers will state that an incoming homeowner must pass a credit check when your solar agreement is transferred—however, if they can qualify to buy your home, qualifying to take over a solar agreement should be no problem.
For advice on solar transferability, and to compare options for your home, please contact us.
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This is a common misunderstanding–you should not owe your utility company a large bill at the end of the year. (SEE MY BLOG POST)
If the system is designed by experienced professionals, it should be sized to cover all your usage and with some buffer for future growth or hot summers.
Particularly in Pacific Gas and Electric territory (Northern CA), their new Solar Billing Program (aka NEM3) eliminates the end-of-the-year True Up. Now, any true up charges are billed monthly.
Under the old system, some homeowners did receive large bills at the end of the year.
The main reasons that some customers receive big bills at the end of every 12 months are:
Inadequate system design: either the salesperson designing the system did not do a thorough assessment, or misled a homeowner regarding system size (smaller systems make for an “easy sell,” but often do a disservice to customers).
Changes in electricity needs: as consultants, we carefully design your solar system based on current and future needs. We ask you questions like: do you plan to add a pool or hot tub? How about an EV? Are you using your air conditioning comfortably or would you like to run it more? How about space heaters and appliances? It is easy and simple to oversize a system for future electricity needs.
Mechanical errors: many companies emphasize the panels they use but do not explain that the inverter is the most critical component. Many solar companies use cheap string inverters. When they fail, your entire system stops producing. This is why we recommend micro-inverters: each panel has its own individual inverter, so if one panel stops working, the rest of the system will continue to function. Some high quality string inverters paired with powered optimizers can provide the same benefit.
For more information about solar equipment, and to receive customized solar options unique to your usage needs and future plans, please contact us.