Californians Not Phased by Falling Solar Rebates

In the last two weeks therebate levels for the California Solar Initiative (CSI) rebate program dropped for customers of PG&E from$1.10 to $0.65.

 

This is great news because the rebate reduction istriggered by more people deciding to go solar. The thinking behind thisplanned reduction in rebates was driven by the assumption that the price of solar panels would fall and in turn reduce the need for a highrebate to make solar affordable. As predicted, solar panel prices havemarkedly decreased over the past two years with moreprice reductions expected. While the 40% PG&E rebate reductionsounds like a lot, the overall cost of a home solar power system hasonly increased by around 8% which adds less than a year to the paybackperiod. The reason for the minimal increase is because the 30% federaltax credit, which is calculated after the state rebate is deducted,makes up for most of the state rebate reduction. Even with thedecreasing rebates many Californians are not phased. Mark Bachman fromAuriga USA reports that applications for the CSI rebate for 2010 havealready outpaced 2009 numbers by 91%.

 

So where are solar prices headed? Wellmost analysts agree that we are in for further price cuts for solarpanels in the next few years. However, panels are only one factor, youstill need to consider the installation cost and until there is a moreefficient method for mounting and connecting a solar power system toyour house, this cost will remain fixed. Remember, while price isdefinitely a major factor in deciding whether to go solar, there aremany other factors to consider. If you’re interestedin finding out whether solar makes sense for you, we can put you intouch with qualified local installerswho can provide you with tailored, no obligation quotes. You could be paying less for clean energysooner than you think.

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