Going Solar in San Jose, California
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Solar energy in California has become a powerful force. Many Golden State cities offer great conditions for solar potential. Luckily, San Jose is no exception. Let’s take a closer look at what makes going solar in San Jose a wise choice.
Does Going Solar in San Jose Make Sense?
Several key factors determine whether solar energy makes sense in a given area. The first factor is the amount of solar energy available. Thanks to a sunny, stable climate, San Jose solar panels can tap into a huge amount of potential energy. In fact, the city averages over 300 sunny days per year.
Furthermore, going solar in San Jose also makes great financial sense. A solar installation in San Jose can help you avoid Pacific Gas and Electric’s steep energy rates. At $0.17 per kilowatt-hour, PG&E’s grid rates are among the highest in the country. Installing solar can help make costly utility bills a thing of the past.
Best of all, solar panels may be less costly than you think. When you hire a San Jose solar installer, you can access many federal, state and local incentives. Utility companies and private groups offer rebates, discounts and other ways to save as well. Together, the lower costs and the continuing savings can add up to a serious return on your investment.
The facts about San Jose Solar Panels
- In 2020, the average price of installing solar power in the San Jose is $3.20 per watt.
- The average system cost of a 5kW solar system in this region are often less then $14,000 AFTER tax credit deduction.
- In this region, the average system size for a residential solar installation is around 5.5 to 6.0 kilowatts.
- 5.0-kilowatt system can save the typical San Jose resident an average of $45,219 over 20 years.
How Much Do Solar Panels Cost in San Jose, California in 2020?
There are many reasons homeowners choose solar energy. It’s stable, clean, renewable and has a small impact on the climate. Of course, the most important factor is often financial. For many people, going solar in San Jose only makes sense if it’s cost-effective. Fortunately, California’s strong commitment to solar has helped keep prices low throughout the state. That means solar panels are very affordable for San Jose residents.
As of January 2020, San Jose homeowners pay an average solar panel cost of $3.20 per watt. Keep in mind that this is only an average rate. The price you pay will change based on the installer you choose, the capacity of your system and more. Across Santa Clara County, the average installed capacity in 2020 is around 5.5 to 6.0 kilowatts. To make things simpler, a 5.0-kilowatt system is often used as a baseline. At this size, San Jose residents can expect prices that range from less than $13,600 to more than $18,400.
However, note that these figures don’t include the 26% Federal Investment Tax Credit (ITC) and other incentives. The ITC alone can help you save thousands of dollars on a solar panel setup. When you add some of the other offers and programs we’ll explore below, average system costs are often less than $14,000. You may be able to save even more by checking and comparing quotes from several San Jose solar installers.
How Does the Price of Solar in San Jose Compare With the Rest of California?
If you’re like most people, you want to make sure you’re getting a good deal before going solar in San Jose. Knowing how much you can expect to pay is a good start, but it’s also useful to have some points of comparison. Since prices can vary so much from city to city, let’s see how San Jose’s solar energy market stacks up to some average figures across the state.
According to data from January 2020, residents of the Golden State pay around $3.06 per installed watt. That adds up to a total cost of $15,300 for a standard 5.0-kilowatt system. Of course, this is only an average price. Some people can expect to pay less than $13,000 for a typical system. For others, the cost may hit $17,600 or more. Again, however, these averages don’t include all of the savings that are available to many residents.
How Much Can You Save With Solar Panels in San Jose, CA?
Spending thousands of dollars on a new solar energy system may seem like splurging, but it’s a smart and purposeful investment. With proper sizing and installation, San Jose solar panels can provide all the energy your home needs. Since solar energy is abundant and costs nothing, you may never have to deal with rising energy rates and monthly utility bills again.
With solar energy, the only major expense you’ll incur is the cost of the system itself. The length of time it takes to pay off a system is called the payback period. For San Jose homeowners, this period lasts an average of just over six years. After the payback period ends, you’ll continue to enjoy virtually cost-free energy savings for the entire lifetime of the equipment.
Adding it all up, a 5.0-kilowatt system can save the typical San Jose resident an average of $45,219 over 20 years. Despite costing more to install, larger systems can save even more money. Best of all, that usually isn’t the end of the savings. Most modern solar panels can keep producing energy for 30 years or more with little performance loss.
Incentives and Rebates Available for Solar Panels in San Jose, California
Before you schedule a solar installation in San Jose, make sure you’re getting the best price possible. One way to do that is by taking advantage of the many incentives available for solar energy.
The most well-known incentive is the Federal Investment Tax Credit (ITC). This program currently provides a tax credit equal to 26% of your system’s cost. Unfortunately, the ITC is being phased out. Before closing entirely to homeowners in 2023, the credit will drop to 22% in 2021 and 10% in 2022.
If you install a system before the end of 2024, you can also benefit from California’s property tax exclusion policy. Since solar panels usually boost home values, adding a system to your home should raise your property taxes. Under the current policy, however, you won’t pay an extra cent. With no impact on your taxes, you’ll start saving even more quickly.
SASH and SOMAH Program
Solar is also within reach of many low-income San Jose residents. Homeowners in some areas may be eligible for a full solar energy system at no cost through the SASH program. Low-income customers of PG&E, SCE and SDGE may qualify for a rebate of $3,000 per kilowatt. The Solar on Multifamily Affordable Housing (SOMAH) program also provides valuable incentives for owners of multi-family homes.
San Jose Clean Energy Program and Bay Area SunShares Program
At the local level, San Jose Clean Energy (SJCE) offers an excellent Net Energy Metering (NEM) program. PG&E also offers net metering, but the SJCE program features better rates, flexible billing and other benefits. For a limited time each year, Bay Area SunShares also offers great solar savings through the power of group buying.
Ready to See How Much You Can Save with Solar?
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.
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