Going Solar in Sunny California

It’s November, which means cozy sweaters, savory seasonal flavors, and a hint of cheer on the horizon. Time for pumpkins, pomegranates, and persimmons. And when we turn the clocks back, it really does feel like time is slowing down just a little bit.

What’s not to love about fall, especially when you’re lucky enough to live in Southern California! Even as the days get shorter, North Orange County still gets nearly 300 days of sunshine a year, which is one reason why getting solar here in OC makes so much sense.

Another reason is the suite of solar “perks” currently available from the IRS, SoCal Edison, and others. Plus, it’s never been as affordable as it is now. The average solar PV system today costs about $15,000 to own, with an average life expectancy of 30 years producing up to $100,000 worth of financial savings benefit in some cases. And while local kWh rates may go up and down, the stability that comes from a locked-in rate is yet another, more intangible benefit of a solar setup.

There are a lot of pros when it comes to solar, but ultimately it needs to make sense for your particular situation, with full consideration for how much energy you plan to use, how long you plan to live in the home, maintenance requirements, whether there’s a solar battery backup system, and so on. If solar is something you’re seriously considering, then make sure to do your research. As part of your research, consult with a real estate professional about the impacts that a solar PV system can have on the resale value of your home. While solar is generally a good thing, it’s not always the case.

Read on for more information on the solar "perks" that are available to most owners of solar photovoltaic (PV) systems in the 92821 area code as of October 2023. Click on the embedded links to get more info, or visit marketplace.sce.com/solar to get a no-obligation, custom quote for your property.

1. Solar Billing Plan from Southern California Edison (SCE)

Sometime referred to as NEM3, the Solar Billing Plan effectively reduces your kWh rate by crediting your energy output against your energy usage. A common myth is that once you get solar, you’ll “never pay for electricity again,” but this is very rarely true. Make sure you understand how your billing will work with SCE under your specific solar arrangement.

2. Solar Investment Tax Credit (ITC) from the IRS

This one-time tax credit from the IRS allows you to claim 30% of your total solar installation costs on your federal taxes. The credit rate will decrease starting in 2032, and the program is slated to end in 2035.

3. Active Solar Energy System Tax Exclusion from the California State Board of Equalization

With this limited-time incentive, installing a solar PV system will not result in a tax increase or decrease in the assessment of the existing property, keeping your tax liability the same. So even if your solar system increases your property value, you will not be assessed on that increased value.

4. Self-Generation Incentive Program (SGIP) from the California Public Utilities Commission

While this incentive isn’t directly for solar PV systems, it can benefit solar systems that have an energy storage component, like a battery backup.

5. Solar Renewable Energy Credits (RECs) through the California Energy Commission

Sell the environmental value of your power production in 1 megawatt-hour increments out in the RECs marketplace. This is an advanced way to get even more value out of your owned system.