There are a number of benefits to installing a solar energy system on your home. California’s solar market has been rapidly expanding as more and more people learn about the advantages of powering their home with the sun. For homeowners looking to go solar in Palm Springs or Palm Desert, it helps to know the following information.
The average price of installing solar power in the Palm Springs and Palm Desert area is almost four percent cheaper than that of the rest of California.
The average cost of a solar system in this region is $26,272 when purchased outright. So, how much does solar cost in California per kilowatt? Solar panel owners in Palm Springs and Palm Desert can expect to pay $3,286 per kilowatt of solar energy while the average for California overall is $3,418 per kilowatt.
In this region, the average system size for a residential solar installation is 8 kW! This is much bigger than the state average of 5.5 kW – the average size of a solar power system in these areas is 46% larger than the rest of California! This means homes in the Palm Springs and Palm Desert regions have substantially larger solar installations and are paying less per kW for the systems! This is awesome news if you’re looking to get solar power in Palm Springs or Palm Desert.
There is an abundance of sunshine in Palm Springs and Palm Desert, and an endless supply of energy production potential. With the average price of electricity in California being 17.74¢/ kWh (almost 5¢ more than the national average), it means there is more reason – and more opportunity – to take advantage of the intense sunlight and sunny days.
Southern California Edison offers two different plans for pricing that can be chosen from, depending on the lifestyle of the homeowner and their family.
The standard plan is what most customers use. Basically this is a “tiered” system, where a baseline amount of electricity is provided to each household at a rate lower than the amount of electricity consumed above the baseline. The Palm Springs and Palm Desert area resides in the baseline region 15. Rates here are set at 16¢ per kWh until a customer’s consumption goes 101% over the baseline 39.8 kWh that has been allocated per household. After this baseline is crossed, prices increase to 23¢ per kWh. If a household consumes more than 200% of the baseline, rates jump up to 29¢ per kWh. The standard plan tends to be appealing to those households who are better able to limit their electricity use to stay in the lower tier.
The time-of-use plan gives homeowners different pricing options based on: how much energy is being used, and when the energy is being used. There are four different options to choose from, which fluctuate depending on the use habits of the homeowner. Unlike the standard plan, which allocates a baseline price, a time-of-use plan is appealing to homeowners who are good at restricting their energy use during peak hours and prefer to enjoy lower rates during other times of the day/ year. If you choose to use a lot of electricity during peak hours, such as the evenings, then you will be charged a higher price for the energy you consume. If you use more electricity in the middle of the night, you will be paying a lower price.
On average, these areas receive more than 6 hours of sunlight per day. Palm Springs and Palm Desert are two of the sunniest regions in the US. The very low amount of cloudy and overcast days means that solar panels can operate at maximum productivity nearly every day. Homeowners who install solar in these areas can enjoy the benefits of harnessing the sun’s energy to help off-set or even eliminate high electricity bills.
There are a number of perks that come with utilizing solar power in Palm Springs and Palm Desert.
The Federal Renewable Investment Tax Credit – lets taxpayers claim an unlimited 30% tax credit on approved expenses associated with the installation of solar panels. This credit has recently been extended to December 31st, 2021, and plays a big role in incentivizing homeowners to switch to solar energy.
Throughout the state of California, homeowners who install solar can take advantage of the Property Tax Exclusion for Solar Energy Systems. This program allows homeowners who had not already previously received a tax exclusion on their solar system to qualify for an exemption of up to 75% of their equipment’s total cash value. Owners with solar power in Palm Springs and Palm Desert (and the rest of California) can take advantage of this until December 31st, 2024.
In addition, some California solar rebates are still available in certain areas, depending on your utility and city.
Net metering and how it benefits homeowners in Palm Springs and Palm Desert
For homes that use solar power in Palm Springs and Palm Desert, net metering allows a homeowner to receive compensation for any energy produced that goes back into the grid. Basically, if no one is home during the day, when there’s an abundance of solar energy in Palm Springs and Palm Desert, the net metering system will measure how much energy is being distributed to the utility grid. The credits that you receive from this excess energy will then be reflected on your monthly bill.
For example, if a home uses 500 kWh of energy in a month but produces 200 kWh, they will be billed for the additional 300 kWh. Conversely, if that home used 300 kWh but produced 500 kWh, they would receive credit on their next billing cycle for 200 kWh. This means that homes with solar panels in Palm Springs and Palm Desert actually have the opportunity to cancel out their energy bill.
Interested in getting exact prices for the cost solar for your home? Get competitive solar quotes from qualified, trusted installers in your area. To see an estimate for how much you could expect to save and how much a solar system would cost, try our solar calculator.