Whether you've had your door knocked by a "solar guy" or just noticed more and more houses with solar panels on their roof, one thing's for sure, it's cheaper to go solar than staying with your utility company.
Your Utility Company Is NOT A Non-Profit
When we think of some of the things we as humans need to survive, electricity is one of the most essential, so when we think of the companies that provide that for us, we tend to think of them as non-profits or government managed companies. In reality, these companies are owned and operated by big investors that seek to profit as much as they can. They are always looking to cut operating costs and hike up their prices, even if that means cutting corners. One of the best examples is PGE, Pacific Gas and Electric, in California. They've had to pay millions in lawsuit settlements just in the past 10 years for their contributions to wildfires that have resulted in millions in damage, and deaths. To make matters worse, they make their customers pay for the lawsuits by adding "wildfire charges" to their utility bills. After all, how can homeowners say no to these charges if they need electricity and there's nowhere else to get it from. When there's only one choice to get your energy from, that company can raise their prices without losing customers because they know you have no other choice but to pay any fees that they charge you.
Your Utility Company Already Went Solar
We don't often think about how our utility companies produce the power that they sell to us. The truth is the fastest growing process they us to generate electricity is solar power. They have solar farms in outskirts of cities and out in the deserts where they it's always sunny. A lot of them have been around for a while but every year they build solar systems that produce megawatts worth of solar energy. After producing the energy, they store it and distribute it to wherever they need it. After all, sunlight is free and it makes sense to take advantage of how sunny it gets in California. This is the same idea when it come to residential solar systems.
How much does solar cost?
First, we have to realize that the cost for energy from utility companies goes up anywhere from 6 to 18 percent a year. (That's faster than inflation even if it goes up only 6%!) This means that if your average monthly bill is $100 this year, it could be up to $118 next year, even if you're using the same amount of energy. So you're paying an extra $18 a month or $216 a year. And let's be honest, the average monthly bill for energy is a lot higher than $100 a month. In 20 years, that 6-18% increase can result in your bill to be $2,739 per month IF your average monthly bill is $100 today, but again, it's probably a lot higher than $100 a month already.
Looking at the cost of solar is a lot different. First, solar panels aren't cheap. A small system costs anywhere from $10 thousand to $20 thousand dollars and realistically, the average person doesn't have that amount to spend on solar. So how is it that solar costs less than your current utility company? When you look at the lifespan and the full warranty you get with solar, you realize that the current prices and ongoing energy cost increases will cost you more than going solar. This has been recognized by various banks and the federal government, which is why financing has been made available specifically for solar. The federal government also introduced a tax credit for going solar in 2020. As of 2022, the tax credit is 30%, which can result in about $6,000 in tax credits for a $20 thousand system. This combined with financing can result in your monthly payment for your energy to be cut by almost 60%! And the best part, your monthly payment with solar is fixed, so you can say goodbye to those increasing rates.
As of 2020, any new residential homes in California have to have a proportion of their energy supplied from solar panels installed in the property. Solar has not yet been made mandatory for all homes but this is something to be expected in the next few years. For many, solar is complicated, and that's where My Sol Energy comes in. We'll take care of everything from the beginning so you can just enjoy the savings that come with solar. To learn more, schedule an appointment or give us a call!