Homeowners Saving Money With Solar Energy
CENTRAL COAST, Calif. – The sun may be 93 million miles away, but it’s hitting closer to home than ever before thanks to the recent surge in homeowners purchasing solar energy systems.
“Over the last few years, the popularity of going solar has just increased
and increased,” said Michael Roberts, a design consultant with Santa Ynez Valley Solar.
According to Roberts, the number of homeowners who have installed solar increased by 80 percent from the previous year. Overall, there are more than 500,000 homes in the United States who have switched to solar, with the number expected to exceed one million in the near future.
“One of the major reasons is the huge reduction in the cost of the panels,” said Frank Scotti,with Solarponics, the oldest solar company on the Central Coast. “From a couple of years ago, we’re looking at today we’re looking at about a 60 percent reduction.”
With an average system now running between $15,000 to $20,000, its made solar a more attractive energy option for homeowners, such as Gary Kibbe of San Luis Obispo.
“If I’m going to invest in something, then I rather invest in my house
than PG&E,” said Kibbe, who had a system installed this month. “I’m paying for a system that’s paying for itself.”
Kibbe’s current electric bills run as high as $220, but when he receives his first electrical bill with his new system installed, he’s looking at significant reduction.
“Close to 80, 90 percent, and in some months it will be more than that.”
CJ Jackson of Solvang knows all about saving money with a solar energy system. Facing large electric bills each month, he decided to install panels two years ago.
“We averaged bills in the vicinity of about $320 per month, over the
course of the 12-month period,” said Jackson.
Two years later, Jackson’s electric bills are dramatically lower.
“This is particularly a nice month, it’s a month where my bill is actually
a negative $4.71.”
Both Kibbe and Jackson use more electricity than the average consumer on the Central Coast. According to PG&E, the system-wide average consumption is around 500 kWh per month. That total is similar to what Andrea Chavez of Arroyo Grande averages in her 2400 sq. foot home.
She says her bills were between $75 to $90 a month. But despite those modest totals, she decided to install solar panels two months ago.
“With my new solar panels, we’re only paying PG&E between $4 to $5 dollars a month,” said Chavez.
Her electrical usage is in the range when the financial benefits of switching to solar needed to be weighed.
“Anybody that has a bill $70 or under, they really have to consider the
reasons why they’re doing it,” said Scotti. “You’re return on investment drops
dramatically and your payback extends quite a bit.”
Chavez is now paying $103 a month on her loan for the panels. That’s more than what her electric bills use to be. However, it’s expected electric rates will rise enough in about 7 years for her new month bill to even out with what her electric bill would be.
“Energy rates will continue to go up,” said Chavez. “We have a fixed rate of $103 a month for the next 12 years and after that we won’t be paying anything for electricity.”
After 12 years, Chavez’ system will be paid off, and with her solar generating enough power to cover her electrical usage, she’ll experience, in essence, free energy.
“Once you’ve had enough return on investment through the reduction of your
electric bills that you will eventually cover the cost and it will be a
net gain,” said Jackson.
Over the course of time, those net gains will add up.
“Someone with an $80 to $120 bill is going to save anywhere from $20,000
to $50,000 with a $250 bill and up, they’re going to save $100,000 or
more,” said Scotti.
While the cost of solar has dropped, there is still a fairly considerable
initial investment, but helping to offset that are several new financing
options.
“They have green loans that are fairly easy to apply for. We see a lot of
home equity line of credit loans,” said Scotti. “There’s a program here called California Pays, which basically allows you to buy a solar energy system and finance it and re-pay through your property taxes.”
Also helpful is the solar investment tax credit from the federal government, which is scheduled to run through next year.
“They will give you a 30 percent tax relief on it, so not only is it
cheaper to purchase today, but you get the tax relief as well,” said Roberts.
There are also lease options to consider, such as companies like the nationally-based Solar City.
“There’s what they call power purchase agreement, where the company owns the system,” said Kibbe. “You just pay for the power that it produces, so there’s no investment on your part, but you also don’t own the system.”
No matter who homeowners are paying for their solar energy systems, they’re doing it record numbers, and are turning the Central Coast into the “Solar Coast.”
