Why now is the right time to install solar.

From an environmental perspective, there has never been a bad time to install solar. Although it takes energy and resources to manufacture, transport, install and eventually dispose of solar equipment, its long lifespan and high efficiency makes a properly installed system net environmentally positive very quickly.

But how about financially? Assuming you have a suitable roof (or ground mount space) is now a good time to pull the trigger? Short answer; absolutely! And the sooner the better! 

If you are procrastinating, thinking that as the cost of solar panels continues to decline, you might save more on a system by waiting a while, that could be a major mistake. There are two big factors which could make going solar far more expensive as soon as next year: Net Energy Metering and the Investment Tax Credit.  

California’s Net Energy Metering system

Net Energy Metering (NEM) means you get paid for any surplus power your system generates and pushes back into the grid. It was introduced by the California Public Utilities Commission (CPUC) in 1995 to encourage solar installations, which were really expensive back then, and updated (“NEM 2.0”) in 2016 by which time system costs had reduced drastically. NEM 2.0 generally made new residential systems a little more expensive but original NEM customers were grandfathered in at the original (more generous) rate. NEM 3.0 is now in the works and undoubtedly will make residential solar more expensive, the only question is, how much? Bottom line; if you’re looking to get maximum financial value from solar, now is the time. Best guess; you’ve probably got about 6 months! For more perspective and background, here’s the NRDC’s take on NEM 3.0.

The Investment Tax Credit (ITC) allowed a federal tax deduction of 30% on the cost of residential solar installations until January 2020 when it dropped to 26%. It is scheduled to drop again at the end of next year and after 2023 it will disappear altogether for residential installations, unless extended by the federal government. So you have about 18 months to save 26%. Here’s full details from the Department of Energy.

A couple more financial considerations

Electricity costs. PG&E/MCE power costs are regulated by the California Public Utilities Commission (CPUC) and are some of the highest in the country. Rates have trended upward over the years and it’s a safe bet that’s the way they’ll keep going. What this means in practice is that the sooner you go solar, locking in costs, the more you will save as rates continue to rise.

Local incentives. Additional incentives can sweeten any deal, so it is always a good idea to check for city, county, state and utility incentives. At this time there do not appear to be any Marin County solar system installation incentives, but Electrify Marin does have rebates for electric appliances when switching from gas. These changes are often most effective in conjunction with solar power installation. 

So, yes, now could be the best possible time to go solar! Do your homework. Shop around, with company reputation as well as system cost in mind. Solar salespeople will help crunch the numbers for you but assuming you have a viable roof, and are using more than a minimal amount of power, you will save money. But do it now to get in before NEM 3.0. There won’t be a better time in California, until they build a time machine!

A couple of useful links: Novato’s own solar information page is a great place to start. Novato-based SolarCraft has been around for over 35 years so have more local experience than most. A quick Google search will bring up many other options. Tesla has new solar tiles as well as standard panels. Electrify Marin is a rebate program for replacing gas-burning home appliances.