Who Can Install Solar In Ca?
California is a national leader in solar energy. According to CaliforniaDGStats.ca.gov, as of September 2022 there were over 12,900 solar projects in the state totaling 126 Megawatts of installed capacity. Solar supplies more than 20% of California’s electricity today (California Solar | SEIA). At the end of 2022, California had over 38,000 MW of solar capacity installed, enough to power 10.5 million homes (Solar power in California).
Installing solar panels in California provides many benefits. Solar energy is a clean, renewable source of power that does not emit greenhouse gases. Going solar allows homeowners and businesses to reduce their energy bills and hedge against rising electricity rates. With ample sunshine, much of the state is ideally suited for solar power generation. The falling costs of solar panels and batteries are making solar more affordable. There are also financial incentives like tax credits and rebates to lower the upfront investment.
Residential Solar
Homeowners across California can install solar panels on their homes to generate clean electricity. There are a few incentives and rebates available from the state and utilities to help reduce the upfront cost of residential solar:
The California Solar Initiative (CSI) provides rebates for solar installations based on system size and location. CSI rebates can cover 5-15% of system costs for homeowners. However, the program is nearing its cap and rebates are shrinking (Sunrun).
Some municipal utilities like Los Angeles Department of Water and Power (LADWP) and Sacramento Municipal Utility District (SMUD) offer additional rebates up to $500-2000 for residential solar. Low-income homeowners may also qualify for higher incentives through the CSI DAC-SASH program (MarketWatch).
At the federal level, homeowners can claim a tax credit for 26% of their solar installation costs through 2024. The tax credit will phase down to 22% for systems installed in 2025 (Forbes).
While upfront rebates in California are limited, solar can still provide long-term savings on electricity bills for many homeowners. Careful system design and shopping among installers can help maximize savings.
Commercial Solar
California’s climate creates ample sunshine for business owners to install solar panels and reap substantial benefits. Commercial buildings, factories, and large operations with expansive rooftops or parking lots are ideal for large solar arrays. Outfitting a company’s property with solar can lead to significant long-term cost savings and tax credits.
The main incentive for commercial solar is a 26% federal tax credit, which allows businesses to reduce what they owe in federal taxes by 26% of the cost of installing solar. Many utility companies also offer rebates and incentives to businesses who install solar. For example, PG&E offers a Solar Incentive Program of up to $300,000 for qualifying businesses. The savings from solar energy each month leads to a quicker payback period that makes solar a smart investment.
Net metering policies in California also allow businesses to reduce utility bills. Solar-generated electricity first supplies the property’s needs. Any excess is sent to the utility grid, spinning the meter backwards and offsetting the energy drawn from the grid at other times. Many businesses utilize solar to lock in lower electric rates for the long run and hedge against rising utility costs.
To take full advantage of solar benefits, it is advisable to undergo an energy assessment. Solar installers can analyze the property’s energy usage, evaluate the roof and best areas for panel installation, and determine the ideal system size to maximize savings. The right commercial solar system can provide businesses clean energy and significant cost reductions for decades.
Community Solar
Community solar programs allow multiple energy customers to share the benefits of a single solar array installation via credits on their electricity bills. California has several community solar programs, including Community Solar Green Tariff (CSGT), Disadvantaged Communities Green Tariff (DAC-GT), and The Solar on Multifamily Affordable Housing Program (SOMAH).
The CSGT program launched in 2019 and allows customers of the state’s three major investor-owned utilities – PG&E, SCE, and SDG&E – to subscribe to a portion of a community solar project and receive credits on their bills (https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/community-solar-in-california). The program has a capacity cap of 158 MW and over 24,000 customers enrolled as of early 2022.
However, the growth of community solar in California has been constrained by utility restrictions and costs. A bill passed in 2022, AB 2316, aims to accelerate community solar adoption by removing barriers and expanding access, especially for low-income residents (https://energynews.us/2022/09/09/california-is-finally-unlocking-community-solar-for-the-masses/).
Third Party Ownership
Many California residents and businesses choose to go with third party ownership of their solar systems, through options like solar leases and power purchase agreements (PPAs). With a solar lease, a solar company installs a system on your property at little to no cost, and you agree to make monthly payments to essentially rent the system. At the end of the lease term, you may have the option to extend the lease, have the panels removed, or purchase the system.
A solar PPA is another financing option where a solar provider installs a solar energy system on your property at no cost, and sells the power generated to you at a fixed rate that is typically lower than your current utility rate. The solar company owns, operates and maintains the system over the term of the PPA, typically 20 years. This allows you to go solar with no upfront costs and potentially save money on electricity.
Some of the top solar companies offering PPAs in California include Revel Energy, MCCU, and SunPower. When choosing a solar PPA, it’s important to read the contract thoroughly and understand the rates, which may escalate annually. Reputable solar providers can offer PPAs with no penalties for early termination.
Solar Installation Companies
There are many solar installation companies operating throughout California that homeowners and businesses can choose from. Some of the major installers in California include SunPower, ADT Solar, Green Home Systems, Elevation Solar, Palmetto Solar, Sunrun, and Tesla/Solar City.[1]
SunPower is one of the leading solar companies in California and has installed over 500,000 solar systems worldwide since 1985. They provide high-efficiency panels and comprehensive warranties on their installations.[2] ADT Solar (previously Sunpro Solar) focuses on making solar affordable and accessible with flexible financing options. Green Home Systems takes a whole-home approach to solar with energy storage and EV chargers.
Elevation Solar has installed over 10,000 solar energy systems in California and offers 25-year warranties on their work. Palmetto Solar provides excellent customer service and support throughout the process. Sunrun pioneered solar leasing in CA and continues to be a top choice for leased solar panels. Tesla/Solar City combine solar with Powerwall batteries to enable energy independence.
With many reputable options to choose from, homeowners and businesses in California can find experienced solar installation companies to meet their unique needs and goals. It’s recommended to get multiple quotes and thoroughly research companies before selecting an installer.
DIY Solar
Homeowners in California can install solar panels on their own properties, but there are important regulations and permitting requirements to follow. The state has strict rules to ensure safety and compliance with the building code.
According to the California Solar Permitting Guidebook, solar PV systems installed on residential buildings must comply with the California Electrical Code, the California Residential Code, and all applicable local codes and ordinances.[1] This means homeowners must apply for and receive permits before starting installation.
The permitting process involves submitting an application, plans, equipment specs, and other documentation to the local building department. If the application meets all requirements, a permit will be issued allowing installation and inspection. DIY installers are held to the same professional standards as licensed contractors.[2]
While permitted DIY solar is allowed, the complex regulations and required technical expertise make hiring a qualified professional contractor advisable for most homeowners. Improper installations can result in fines, project delays, and safety hazards.[3]
Solar Training Programs
There are a number of training programs in California to become certified in solar installation and gain the skills needed to work in the industry. Many community colleges, trade schools, and solar companies offer solar training programs ranging from a few weeks to two years. Some of the top solar training programs in California include:
San Diego Miramar College offers an Associate of Science degree in Solar Turbines Technology that focuses on solar panel installation and maintenance. Graduates are prepared to take the North American Board of Certified Energy Practitioners (NABCEP) certification exam.
The Interstate Renewable Energy Council (IREC) offers two levels of skills certificates for solar installers, ensuring they meet national standards. There are over 50 IREC-approved training providers in California.
Organizations like Grid Alternatives and the California Solar Energy Industries Association run solar job training programs targeting underserved communities, veterans, and women.
Major solar companies like Sunrun and SunPower provide in-house training programs to become a certified solar installer with that company.
With California’s massive solar market, job prospects for solar installers and technicians are very strong. The solar workforce in California is projected to grow by 10% through 2023 according to the Solar Foundation’s Solar Jobs Census. Getting the proper training and certifications can lead to a good career installing solar in California.
Incentives and Costs
The federal government offers tax credits that can significantly reduce the cost of installing solar panels in California. The federal solar tax credit allows homeowners to deduct 26% of the cost of installing a solar energy system from their federal taxes through 2032. There are additional incentives from the state government as well. For example, the California Solar Initiative provides cash back per watt of solar installed.
On the local level, some municipalities and utility companies offer additional rebates and incentives to go solar. For example, Los Angeles Department of Water and Power provides rebates starting at $0.15/Watt for solar installations. Always check with your local utility to see what solar incentives may be available.
In total, the various federal, state, and local incentives can reduce the out-of-pocket costs of a solar installation in California by 50% or more. This makes going solar much more affordable. The incentives combined with the long-term energy bill savings make solar power a great investment for California homeowners.
According to this source, the average cost of a solar panel installation in California ranges from $12,622 to $17,078. The exact cost will depend on system size, panels, and location. With incentives, the net cost can be reduced significantly.
Conclusion
In summary, there are many options for who can install solar panels in California. Homeowners can choose to install solar on their own residence, either by doing it themselves or hiring a solar installation company. Businesses and organizations can install solar on their commercial properties as well. Community solar allows households, businesses, and other entities to purchase a portion of a shared solar array. Additionally, solar can be installed via third party ownership models like power purchase agreements, leases, and solar loans. Essentially, if you own property in California, whether residential or commercial, you likely have the option to go solar.
For readers interested in installing solar, the next steps are to research installation options, compare bids from solar companies, explore incentives and financing, obtain permits, and schedule an installation. With ample sunshine and supportive policies, California continues to be one of the leading solar states. Take advantage of the ability to harness renewable energy from the sun by going solar.
