Costs & Financing

How much does solar energy cost?

An average residential solar system costs between $10,000-30,000 after rebates and incentives. Considering that you will probably spend over $50,000 in electrical bills over the next 25 years, this can be a small price to pay. Some companies even offer lease options in which you pay no out-of-pocket expenses for the installation.

The exact cost of your solar system will depend on the applicable California state rebates and utility incentives available in your area and the type of installation you chose. Using a qualified installer who is familiar with the local incentives and permitting process will ensure that you get the most from your investment. For an overview of the California rebate system, please click here!

Are there any government tax incentives or rebates?

One of the great elements of solar power in the U.S. is that there are large number of tax incentives and rebate programs that exist to make it easier to afford solar power for your home. The solar installer that you select will be up to date on all of the applicable incentives based on where you live but below are some of the basics:

  • Federal Tax Credit: Investment Tax Credit (ITC) allows individuals to deduct 30% of the cost of a solar system from individual federal income taxes;
  • Individual State Rebates: Many states offer cash rebates that are either flat amount or are based on the size of your solar power system - check out this site for more information on the rebates in your state;
  • Property Tax Exemptions: Many states also specifically exclude the value a solar energy system from your your annual property taxes… for example, if a new solar photovoltaic system adds $30,000 to the value of your home, that $30,000 will be exempted from the total assessed value and your property taxes will not increase as a result of the new system.
  • Municipal and Utility Rebates: In addition to the federal and state incentives, many local municipalities and utilities will offer rebates on top of everything else…please check out this database for any incentives in your specific area.

If I can not afford an up front payment for a solar power system, are there financing options to help me?

Yes, our partners offer a variety of great financing options to help offset some of initial installation costs. In some cases, your monthly payment will be less than the amount of savings on your electric bill. Low interest rates are available and the solar system increases the value of your home. Again, the your solar installer will have all of the details on the available financing options but make sure you ask about the following:

  • Home Equity Loans: borrowing against the equity of your home;
  • Leasing: leasing the solar panels for a fee over a set length of time; and
  • Power Purchase Agreement: an arrangement similar to a lease arrangement where the solar provider/installer secures funding on their own for the solar project, installs the solar system in your home/office building and then sells the electricity from the solar system to the home/building owner at a fixed contractual price for a set length of time.

**Interested in a $0 electrical bill? Click here to get a free solar assessment from pre-certified installers in your area!**