Californians will benefit from purchasing residential solar before the April 13, 2023 deadline in order to maintain current net metering rates. Net metering rates were slashed by 75% for new solar panels, replacing the old rates with varying payment rates based on the time of day and electricity demand. The purpose is to incentivize individuals to purchase solar storage batteries to reduce energy demand during peak usage hours. This only impacts new solar owners after the April deadline. All of this information has been sourced via the California Public Utilities Commission. In order to take advantage of the current payout rates, new solar projects will need to have an Interconnection Application submitted by the deadline to be grandfathered into the current rate. If you are seeking to move quickly on this opportunity, EcoWatch has the perfect tool to help you get started on your solar project. By entering your zip and taking our quick solar quiz, you can connect with a local professional to get your project started before the state starts enforcing the lower export rates.
If you have the funds, paying in cash will maximize your long-term savings. For those without the necessary cash flow, a solar loan will make the most sense. Leases, for the most part, are still guaranteed to save you money, but they come with fewer benefits and less flexibility. To get a quick estimate of the lifetime savings you could experience with solar, use our solar calculator quiz.
Avg. lifetime savings over 25 years (10 kW)
Avg. payback period
Avg. cost without tax credit (5-10 kW)
Avg. cost with tax credit (5-10 kW)
Avg. cost (in CA)
Avg. annual power production (10 kW)
Home Solar System Size
U.S. Solar Panel Cost
Cost After Federal Tax Credit*
6 kW
$15,960
$11,810
7 kW
$18,620
$13,779
8 kW
$21,280
$15,747
9 kW
$23,940
$17,716
10 kW
$26,600
$19,684
11 kW
$29,260
$21,652
12 kW
$31,920
$23,621
Cash purchased Before 26% solar tax credit
Financed Before 26% solar tax credit
Leased Estimate for average lease cost
Homeowners should keep in mind their expected solar panel payback period, or the amount of time it will take to recoup their investment, by state. The cost of your home solar system can vary greatly, depending on the total federal and local tax credits.
Not all systems completely offset the energy you’d typically purchase from your utility company. But solar panels can increase your property value by up to $15,000, according to the Department of Energy.
Most residential solar systems will produce electricity for 20 to 30 years and require very little maintenance. The costs/savings vary based on how you purchased the panels (bought outright, financed, or leased). To get a quick estimate of what you can save by making the switch to solar, use our solar calculator quiz!
The best way to determine whether your home is a good fit for solar electricity is to contact a solar installer in your area. A solar energy specialist can come to take a look at your home and give you a custom recommendation.
Solar panel efficiency can convert over 20% of the sunlight’s energy into electricity, especially if your roof is obstructed by little shade and faces south or west.
In states that have a solar sales tax exemption, the purchase of solar panels may be shielded from sales tax. Currently, at least 25 states offer a solar sales tax exemption and 36 states offer solar property tax incentives. By using our solar calculator quiz, you can check the incentives that are available for you!
2021
26%
2022
26%
2023
22%
2024
10% (for commercial installations only)
2021
26%
2022
26%
2023
22%
2024
10% (for commercial installations only)
The information on our website is general in nature and is not intended as a substitute for competent legal, financial or electrical engineering advice. As forecasting solar savings involves assumptions about future electricity prices you should be aware such estimates are inherently uncertain.
