2012 is a good time to go solar. In the past four years, the purchase cost of solar panels has fallen by 50% and the cost of electricity has risen considerably in California.
Waiting to install solar panels on your residence or commercial space might cost more out-of-pocket since many clean-energy incentives introduced with the 2009 economic stimulus are ending, unless they are extended (which will largely depend on this November’s election outcome). In 2009 there were $44 billion in clean-energy incentives available, though currently there are only $16 billion, falling to $11 billion by 2014.
Solar panels allow a homeowner to save money on energy bills by supplementing their electricity usage with solar power and even adding credits to their electricity bill through various counties’ net-metering programs. California has 1.2 gigawatts of solar energy capacity – making up almost half of the nation’s solar energy capacity. That number is projected to increase tenfold by 2020. California’s net-metering cap has recently been increased to 4.6 gigawatts. Thus, there is still plenty of room for new solar users to participate.
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California leads the way in solar power, evidenced through net-metering programs gaining speed across the state, as a feed-in tariff program geared toward large commercial buildings was recently launched in Los Angeles.
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Making improvements like installing solar panels – which currently cost very little out-of-pocket due to subsidies and other programs – is a good way for homeowners to spend their time while waiting for the housing market to recover. The opportunity cost of installing solar panels equals a long-term pay-off for those who jump in while there are still subsidies available.
Looking ahead, installing solar panels will continue to be a wise investment, as energy costs will only continue to rise and net metering programs grow. But don’t wait too long – the limited government subsidies for solar installations allow greater access to solar energy only as long as the money lasts.
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To find out if you or your client qualifies for a solar installation program, visit the California Energy Commission’s website on solar initiatives.
Re: Difference Engine: To and from the grid from The Economist
Please explain why the greater savings in rural areas that have only electricity and propane.
Let the large electric utilities expand their utilization of solar energy in order to benefit Californians. Individual homeowners in urban areas served by natural gas and electricity will NEVER recoup the upront investment without government subsidies. The greatest savings in monthly energy expenses go to those homeowners in rural settings, served only by electricity and propane. They can oftentimes recoup the upfront expenses within a few years, and notice the monthly savings immediately, particularly in the sunnier months. Don’t be conned by the “green initiative”. The reality is we have outstanding power generation, and your money is safer in the bank. Getting your “green” is their initiative.