How much will it cost?
The cost of a solar electric system can vary significantly depending on the amount of power required. A home with a $50/month electric bill will require a completely different system than a home with a $500/month electric bill. For this reason, residential systems range in cost from $10k–100k.
How can I go Solar for Less?
Borrego Solar has a partnership with Sun Run which allows home owners to go solar for less. Instantly you’ll receive all the benefits of solar, great savings, and lock in a low fixed rate for clean solar electricity for the long term for less money down.
Financing
Many homeowners finance their systems with funds from a home mortgage or home equity line of credit. Loan payments are frequently similar to or less than what a homeowner would pay the utility for power. Plus, the homeowner now owns a solar electric system that adds value to their property and protects them from future utility rate increases.
An Investment
A solar power system on your home is a long term, low risk, high return way to invest your money. Solar offers an initial tax free annual return on investment of 4–10%. This is very competitive with other higher risk investments such as stocks and bonds. As utility rates increase, the annual return increases.
Your Electric Utility
Tiered Rates
All SDG&E, SCE, and PG&E customers are billed using a tiered rate plan. Under this rate plan the more power you use the more you are charged for that power. Higher tiered power can cost more than triple what you pay for your baseline. In 2006, higher tier rates increased by 30–60% in one year. Solar power has the advantage of replacing your higher tiered power first. Customers who currently exceed their baseline usage will see even more significant savings when they install a solar power system.
Time–of–Use
Some homeowners may be able to take advantage of time–of–use metering. This allows you to feed power into the grid during peak times (when power is most expensive), and draw power from the grid during off peak times (when power is cheaper). Customers in PG&E territory are best able to take advantage of time–of–use metering.
Property Value Increases
In addition to this direct return through utility savings, homeowners can also expect that their property resale value will increase substantially. An article in the Appraisal Journal (pdf) showed that property resale values will increase $10–20 for every $1 saved annually in electricity.
Rebates and Incentives
A significant portion of the cost is paid through government incentives. The California Solar Initiative (CSI)offers a rebate for homes and small commercial systems that covers 20–30% of the total system cost, and the Federal government offers a $2,000 tax credit that further reduces the cost of the initial investment.