Many homeowners and businesses looking for a longer-term and more sustainable solution to increasing energy costs will see the financing of new solar systems as a crucial step in transitioning to solar power. But the cost of solar panels in California is still a confusing topic, considering there are a lot of considerations that affect the price over and above the quotes you get from solar installers. This article is focused on bringing to light some of the less-talked-about items that drive up overall costs and help you make a more informed decision.

The minimum cost is just the beginning

For those researching solar energy systems, price per watt or total system cost is typically used to make decisions. But that number usually represents only the base fee (panels and rudimentary installation). One thing many installers don’t tell you is that several added costs can inflate the cost to a very large amount.

These tend to include local fees for permits, inspections, and work on your electrical system. In California, onerous building codes and utility interconnect requirements can also drive costs higher than expected. So, due to this, the average solar panel cost in California can fluctuate to a great degree, depending on your property’s unique requirements.

Equipment Quality and Longevity

Another aspect of solar panel costs is the equipment that you are using. Even though many quotes provide standard panels and inverters, not all gear is equivalent. The tier of panels and inverters used for solar panel installations can be reduced by bargain installers, but this may affect how well the system performs and lasts over time.

High-efficiency panels and panels with long warranties may cost more, but they’ll save homeowners more money in the long run. So it is important to know the details of the components being fitted and what role they play in your energy objectives.

Financing Terms Can Affect the True Cost

Some California solar owners $fund their systems using loans, leases, or power purchase agreements. But those contracts are not always clear. In addition to the possibility of financing to lower the initial cost of the system, it can also raise the amount paid over the life of the system as a result of interest and contract provisions.

You are also advised to know what the years later cost of a particular type of payment will be, just as much as you need to know how much the first cost to install. Some may seem cost-effective in the beginning, but add language regarding ownership, the burden of upkeep, or requirements related to receiving state and federal perks.

Incentives May Not Apply to Every Scenario

There are some perks in California to going solar, such as rebates and net energy metering. But eligibility requirements differ, and not every system or homeowner is eligible. These programs may be promoted by installers who will downplay the savings that are otherwise attained when these programs are not in place.

For example, your actual savings could be diminished by income-based incentives, regional rebates, or utility restrictions. It wouldn’t hurt to independently verify which credits you’d qualify for before including them in your calculated ROI.

Conclusion

When it comes to estimating the solar panels’ cost in California, there’s much more to consider than comparing quotes or the latest solar panel prices. It’s these hidden costs, system quality, financing, and incentives that impact your real savings and help you decide the true cost of solar.

So to make an educated decision, make it a point to ask questions, ask for full system break downs, and put everything under thorough reconsideration. The more you know about actual solar panel prices, the better prepared you will be to select a system that is right for you and your budget.