Solar FAQs
Frequently asked questions
Southern California is well-suited for residential solar due to its abundant sunshine throughout the year. Currently, electrical rates range on an average of $0.36 cents per kWh, with SDGE being one of the most expensive rates at $0.45/kWh.
There are a few options in Southern California- some of the most ideal options are:
- Cash or finance: Homeowners may either finance the purchase and installation of a solar system, or pay full install cost upfront.
- Power Purchase Agreements (PPAs): With a PPA, you purchase the electricity the panels produce, not the panels system. The solar company will maintain, repair, and service the system for a term. Best part, no upfront costs! You simply pay for the electricity generated by the panels at a reduced, fixed cost.
In most cases, solar PPAs do not create liens on the homeowner's property. Unlike solar loans or leases, where a lien may be placed on the property as collateral, solar PPA's typically do NOT involve any liens.
PPA's can positively impact property value. Solar installations are generally seen as desirable features in real estate, and the potential for reduced energy costs can make a property more attractive to potential buyers.
San Diego Gas & Electric (SDGE): SDGE's utility rates were relatively high compared to national averages. By switching to a solar in SDGE's service area, homeowners could typically expect to save anywhere from 10% to 30% or more on their electricity bills, depending on the specifics of their solar installation and financing terms.
Southern California Edison (SCE): SCE also had higher-than-average utility rates. Homeowners in SCE's service area could generally save a similar range of 10% to 30% or more by switching to solar.
Pacific Gas and Electric (PG&E): PG&E's utility rates tended to be among the highest in California. As a result, homeowners in PG&E's service area often had the potential to save significantly by going solar. Savings of 20% to 40% or more on electricity bills were not uncommon with the right solar installation and financing.