A recent report by the Center for Jobs and the Economy revealed that energy prices in California are higher than almost every other state. The state launched a new rate system in 2019 that led to a 40% to 200% increase in the price of power. Alongside electricity, the price of gas has been rising steadily in the state. For every tank of gas in California, $10 goes to taxes, an agreement passed in a 2017 Senate bill.
With rising energy costs, one of the ways Californians can cut costs is by using solar power.
When you go solar, it will most likely be a grid-tied system. You will still need to pay fees charged by the utility company, although they could be significantly less than the usual utility bill when you do not have power. For instance, in San Diego, ratepayers have to pay $30 billion to cover the cost of decommissioning the failed San Onofre Nuclear Power Plant. The cost is added to the bill every month, even for those who never used power from the plant. If you use more power than your system produces, you will still receive a bill. In most cases, solar power reduces the reliance on the grid but it does not fully eliminate the cost.
In California, there are Time of Use billing plans from all major utilities in the state. The highest rate is usually between 4 PM and 9 PM. It is especially so during the winter. However, the power you produce during the day will be used to offset the cost during peak hours.
To avoid using power during peak hours, opt for batteries. These batteries ensure that during the peak billing period, you get your power from them. There are even incentive programs depending on capacity to help install these battery banks.
A smart home maximizes the savings of solar power. Smart homes come with energy-efficient appliances that can control power usage, so you never use more power than you need. People who buy smart appliances are offered rebates and incentives for solar power for this reason.
Modern solar systems come with warranties that can last as long as 25 years, which ensures you don’t have to pay for damage to the system. However solar systems are durable and most can function with minimal maintenance for over a decade.
If you’re thinking about getting a solar system, now is the time for it. Most of the incentives at the federal and state level will be phased out over time, meaning that you’ll have to pay out of pocket for everything. Since utility costs will keep rising in California, insulating yourself from rising powers costs using solar panels is essential.
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