Solar panels are a great way to both take advantage of the California climate, and to deal with the current situation surrounding utility rates. With the price of power steadily climbing to uncomfortable highs, solar panels are becoming an increasingly valuable tool for any homeowner looking to save for their future. As we head into the summer, rates are only going to increase, alongside the instability of the energy grid as more people draw more power for their air conditioning. Home occupancy also rises in the summer months, and the strain on the aging power grid will become apparent shortly. Let's explore how and why solar panels are such a good investment in California.

You Should Install Solar Panels on Your Home

Prior to this year, solar panels have long been considered a strong investment for those looking to reduce their monthly energy bill while increasing their property value and seeing strong returns over the course of their system ownership. That core conceit has not changed, but the landscape surrounding it certainly has, and the combination of strong solar investment incentives and dizzyingly high energy rates has only made installing solar panels a more valuable prospect. Indeed, for many reasons, solar panels are worth it in California and beyond, but particularly as a way to combat the utility's constant rate increases.

Unfortunately for utility customers across the state, energy bill horror stories are becoming all too common. Swapping high energy bills has become something of a regular occurrence for residents of California, with numbers in the thousands becoming less of a rarity by the day. The general mood of utility customers seems to be one of exasperation - the bills are just too high, everyone says, and yet it can feel like there is no way to avoid them. This is where solar panels come to the rescue.

Benefits of Going Solar

As we've said, the number one factor that drives most homeowners to switch to solar energy is dealing with current high electricity rates. Knowing that you can save money on this significant monthly cost is incentive enough for many homeowners, but there are many other benefits of installing solar in California that come along with the financial relief. These include:

• Protection from blackouts with solar storage
• Increased home value
• Potentially eliminated electric bills

Additionally, the federal tax credit as part of the Inflation Reduction Act can save you 30% on the cost of installation. California offers multiple statewide rebates and a property tax exclusion for installing a solar system, which can also make investing in a solar system easier to manage. Your local utility may also offer smaller incentives that can further reduce the investment required by you. All in all, California is working to make going solar easier and more affordable for all homeowners.

What NEM Means for You

One of the biggest advantages of converting your home to solar energy in California is net energy metering (NEM), a policy that has undergone a few iterations. NEM allows you to sell excess power your home generates back to your utility at rates that vary due to multiple factors. The rates change based on time of use and statewide need, so while others are penalized for withdrawing energy from the grid during peak usage, your system will benefit from exporting during high-price periods.

Because NEM now sets rates to pay more for electricity pushed back onto the grid during high-need periods, like in the afternoon and at night, homeowners have a chance to cover the cost of their installation by including a solar storage solution and banking excess daytime energy to send back when rates are at their peak. Opting to include solar storage in your energy system also offers the major benefit of being able to run your home during power outages, making it a double advantage for convenience and savings.

Solar Panels: Well Worth the Investment

In the end, the answer to whether solar panels are worth it in California is a resounding yes! Our expert energy consultants are prepared to help you make the switch to solar, so schedule an appointment today and get some relief from the high cost of energy.