Key takeaways


ver the past decade, the United States has experienced a significant surge in the adoption of renewable energy sources, with solar power at the forefront. This shift towards a more sustainable energy source is not only beneficial for the environment but also offers economic incentives for homeowners and businesses alike. Among the numerous cities embracing this change, Los Angeles stands out prominently. Known for its glitz, glamour, and sunny skies, the City of Angels is now earning accolades for its increasing reliance on solar panels. Let’s find out why.

The Sunlit Advantage: Understanding Solar Potential

The embrace of solar power by Los Angeles is hardly a whimsical choice. The city's geographical and meteorological conditions make it a prime candidate when it comes to harnessing solar energy. For instance, Los Angeles proudly ranks as the country’s 15th sunniest city, boasting an impressive 275 days of sunshine per year. To put this into perspective, Seattle only gets about 143 annually.

But it's not just the number of sunny days that matters; it's also about the intensity of the solar radiation received. Los Angeles has an average solar insolation value of 6.21 kilowatt hours per square meter per day. To put it simply, this metric measures the amount of solar energy hitting a square meter every day. Such high solar irradiance levels mean that a smaller photovoltaic (PV) system can generate the same amount of electricity as larger systems in less sunny regions. This potent combination of sunny days and high solar radiation underscores why Los Angeles is ideally suited for solar energy adoption.

Costs of Solar Panels in Los Angeles

When delving into the realm of solar energy, one of the most pressing questions that arise is the cost. And while the idea of switching to solar may seem attractive, understanding the financial aspect is crucial. The cost of solar panels in Los Angeles averages out to $2.91 per watt. While this number is quite high, the cost is lower than the average national rate of $2.95 per watt. This difference does give the city a subtle edge in the competitive solar market.

Translating these figures to a tangible example, let’s consider an average residential solar system size: 6 kilowatts (kW). At the mentioned rate of $2.91 per watt, a 6kW system would roughly amount to $17,460. While it is a substantial amount of money, it's essential to remember that numerous incentives and rebates can drastically reduce this initial cost, making solar significantly more affordable.

Kentucky offers ample opportunities for solar panel installations, with companies like Solar Energy Solutions and Blue Raven Solar serving the state's renewable energy needs.

Solar Incentives and Tax Breaks

Now that we’ve mentioned incentives, let’s take a look at some of the most generous ones along with some changes related to the net metering program.

Federal Investment Tax Credit: The federal government offers a tax break for homeowners and businesses venturing into solar. Currently, the ITC grants a 30% credit from the total cost of a PV system installation. Simply put, if your photovoltaic panels cost $20,000, you could reduce your federal tax liability by $6,000.

Net Metering Changes: Once a lucrative option for solar users, net metering has seen a substantial cut, with benefits reduced by 75%. While it's still available, homeowners might want to evaluate its current value against other benefits. Some utility companies will buy the energy you generate at a set rate which might be more profitable than net metering depending on your exact location so be sure to check what is available to you.

DAC-SASH Program: The Disadvantaged Communities - Single-family Solar Homes (DAC-SASH) program steps in to aid income-eligible homeowners. This incentive offers upfront rebates to those who install solar panels. Homeowners must be customers of Pacific Gas and Electric (PG&E), Southern California Edison (SCE), or San Diego Gas and Electric (SDG&E) to take advantage of this option.

Self-Generation Incentive Program (SGIP): Promoting the use of solar batteries, the SGIP provides rebates to homes and businesses coupling their photovoltaic systems with energy storage. By adding a battery, you not only store power to use during peak hours but also stand to gain financially through this program.

Increased Property Value with Solar: Installing a solar system on your property increases its value. According to a study made by Zillow, homes with PV panels are not only a hot sale, bought for 4.1% more than comparable houses without them, but they are also sold faster. Data suggests that such properties spend 20% less time on sale, which shows the obvious interest in clean energy systems throughout the area.

No Solar Tax: A cherry on top for Los Angeles solar power enthusiasts: California exempts PV systems from property tax assessments. This means that even though the solar installation increases your property value, you won't see a corresponding increase in your property taxes.

Potential Savings: Is Solar Worth it?

Harnessing the power of the sun isn't just about leading an eco-conscious lifestyle; it’s also a savvy financial move. Let's dive into savings – arguably the most fun part of any solar conversation.

Monthly Bill Decrease

After capitalizing on the available incentives and tax breaks, homeowners can notice a substantial drop in their monthly electricity bills. With photovoltaic panels, you're essentially generating your own electricity, reducing dependence on the grid. Considering the average electricity rate of 24 cents per kWh, the savings quickly add up.

  • 10-year savings: As an estimate, considering the current incentives and average electricity prices, you could save around $25,000 over a decade.
  • 20-year savings: Doubling down on the duration amplifies the savings, with a potential of around $50,000 saved over two decades.
  • 30-year savings: Staying powered with the sun this much could potentially lead to a whopping savings amount of over $70,000.

The actual numbers depend on various factors including future electricity rates. Considering the fact that they have a tendency to increase, you might be looking at even more impressive savings later.

The Payback Period for Solar

Understanding the payback period is important for any investment. For solar panels in Los Angeles, the average payback period stands at approximately 7.02 years. This means that in around seven years, the savings fully cover the system’s initial cost. Every year after that, you're essentially enjoying 'free' electricity.

Average ROI for Solar Panels in Los Angeles

The ROI shows how profitable your investment is when compared to the initial investment. The average ROI is around 22.8% according to statistics. However, it largely depends on individual circumstances and can be significantly higher if everything is done wisely.

Optimizing Solar Efficiency: From Placement to Power Storage

Los Angeles holds impressive potential when it comes to solar energy generation. However, simply owning any old panel isn't enough. Ensuring they perform optimally is crucial for homeowners to get the most out of their investment. Here are some recommendations to help you maximize the profitability of your system.

Do Not Oversize Your Solar System

A common misconception about solar panels is that a larger system is always better. This is not the case. The system should be big enough to fully cover your needs if that is your goal, but not more. If your power setup produces more energy than you consume, that energy is essentially wasted in California, since the amount of money you receive for feeding it back to the grid is not enough to actually make a difference and contribute to your overall savings. Choose the system size wisely.

Placement and Angle for Maximum Sun Exposure

In the Northern Hemisphere, which includes Los Angeles, solar panels perform best when they face true south. However, the exact angle of inclination can vary. For maximum energy production panels should be tilted at an angle roughly equal to the city's latitude, which is about 34 degrees. This ensures the panels receive sunlight perpendicularly during peak solar hours, maximizing energy capture.

Regular Cleaning and Maintenance: An Overlooked Necessity

Dirt, debris, and even bird droppings can accumulate on your solar modules, potentially reducing their efficiency. Regular cleaning ensures your panels remain clear and perform optimally. It can be done by using plain water once every six months, however, you could hire a professional cleaning service to do the job for you if you prefer.

Keeping an Eye on Solar System Performance

Modern PV setups often come with monitoring systems that provide real-time data on energy production. By regularly checking these metrics, homeowners can quickly detect any dip in performance, facilitating swift troubleshooting. It's always a good idea to have a professional on call for any technical glitches you're not equipped to handle.

Store Today, Use Tomorrow: The Power of Solar Batteries

Solar doesn’t just offer day-to-day power; it promises power even when the sun isn't shining. Using batteries to store excess energy generated during the day means you can utilize this power during the night or power outages. This not only ensures a constant power supply but also enhances savings, especially in a city like Los Angeles where peak-hour electricity tariffs can be high.

Final Thoughts

Los Angeles stands out as a beacon in the solar energy landscape, not just for its favorable climate but for the city's active push towards sustainable energy. Investing in solar isn't merely about adopting a green initiative; it's a financially smart decision. With the right setup, regular maintenance, and strategic placement, homeowners can ensure a consistent drop in their electricity bills. The city's ample sun, combined with available incentives, positions photovoltaic panels as a long-term investment with tangible returns. Esentially, smart solar integration in Los Angeles is a wise decision as it’s one of the best cities for solar in the US.


Key takeaways

Sep 29, 2023
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