Here’s where California is cutting the red tape to buy solar
California’s push for renewable sources of electricity such as solar power is leading the nation. Solar power’s role in supplying the grid is at an all-time high. But the expense of installing solar is substantial in the state compared with the rest of the world.
The map below shows the progress of California’s transition to an automated instant permitting process for residential solar and storage systems mandated by the Solar Access Act through the free software called SolarAPP+, Symbium or a jurisdiction’s own software.
Standardizing and cutting red tape for permitting will make it easier and more affordable for homeowners to go solar. You can find your city online at solarrights.org/streamlinedpermitting.
According to Solarrights.org, it is twice as expensive to go solar in California than in many other developed places. A typical rooftop solar project costs homeowners $22,800 in California. In Japan: $13,200. In Germany: $9,600.
The major difference is that in California, outdated permitting requirements and staffing shortages can add months of delays and thousands of dollars to solar and battery projects. Streamlining that process can make it faster and easier for people to go solar. The Solar Access Act was recently passed into law to help make that happen.
Big cities and counties (more than 50,000 people) are required to comply with the Solar Access Act by Sept. 30.
Smaller cities (less than 50,000) are required to comply with the Solar Access Act by Sept. 30, 2024.
INCENTIVES
California generates about 33% of the total solar electricity in the U.S., making it the highest producer in the nation. Texas trails as a distant second, with a production capacity one-third the size.
SOLAR PANEL COSTS
System components, size, fees, permits and labor charges determine overall solar panel pricing.
On average, a residential solar system costs $3 to $5 per watt. The total cost of solar panels on a home ranges about $15,000 to $25,000, depending on the size and location of the home. Solar batteries can add about $10,000 of additional cost.
There are a lot of solar companies in California. Get multiple quotes.
Different companies offer various financing options that minimize the financial burden. For instance, you can make an outright purchase of the solar system or lease it. Tax credits and incentives make choosing the best solar panels more attainable for the average household.
CALIFORNIA SOLAR PROPERTY TAX EXCLUSION
The Active Solar Energy Exclusion is a new construction exclusion. This means that solar panel installation will not be assessed for tax purposes. The exclusion is set to end on Jan. 1, 2025, and does not apply to solar swimming pool heaters, hot tub heaters or wind energy systems.
The Self-Generation Incentive Program and Single-Family Affordable Solar Homes Program are among the current solar panel incentives.
The self-generation program offers rebates to homeowners and businesses that install a solar battery with a rooftop panel system. Rebates vary according to battery storage capacity and the utility company.
Sources: U.S. Energy Information Administration, California Independent System Operator data, California Distributed Generation Statistics, Solar Energy Industries Association, Ecowatch.com