What to Know About Going Solar in California

California is the fastest-growing state in the country for solar power. As a matter of fact, California has over 10 times as many solar-powered homes as the second-fastest-growing solar state, North Carolina. By 2016, nearly 5 million California homes were powered by solar, meaning that over 13 percent of the state's electricity comes from the sun. This could be attributed to the fact that the price of solar has gone down 64% in the last five years. If you're in California and you're looking to go solar, these are a few things you need to know.

The Renewable Portfolio Standard

A renewable portfolio standard is a government mandate that promotes the growth of renewable energy sources. Currently, the state of California has instituted a goal to have 33 percent of the state run by renewable resources by 2020, then 50 percent by 2030. Of course, solar power is a big part of this.

Unfortunately, roof-mounted solar panels might not contribute to this solution as much as expected. A 2015 Los Angeles Times article uncovered that consumer solar panels don't contribute to this solution in the eyes of California lawmakers. This means that utility ratepayers might be overpaying for green electricity to meet the state's goals by not receiving the same subsidies that commercial installations receive. The state mostly looks toward commercial installations that sell to utilities and other large-scale products such as solar and wind farms.

A recent blog post from Pick My Solar has highlighted the rebate opportunities for consumer solar in California:

• When you pay for the full cost of the system, you qualify for a 30% Investment Tax Credit when you file your taxes.
• If you're building a new home, you can receive a rebate from the New Solar Homes Partnership, which can equal up to $1/watt for the first 7,500 watts.
• The San Francisco Public Utilities Commission also offers a basic rebate of $500–$2,000 based on the size of the system.

SEIA California State Solar Policy Priorities

SEIA, or the Solar Energy Industries Association, has compiled a list of solar policy priorities in the state of California. The list is as follows:

• Secure solar-friendly and solar-plus-storage-friendly rate designs by establishing a workable time of use rates and avoiding fixed charges and residential demand charges.
• Support policies to integrate high penetrations of solar and other distributed energy resources, such as storage, on the distribution and transmission system.
• Develop a robust cost-effectiveness framework to ensure solar's benefits are fully captured in advance of the Commission's re-evaluation of net metering in 2019.
• Maximize the opportunities for solar and associated technologies, such as storage, to be integrated into utility distribution system planning and operations to create to revenue opportunities for solar, ease interconnection, and avoid unnecessary utility cost.
• Ensure the Integrated Resources Planning process maximizes solar deployment, both utility-scale and distributed.
• Expand access to solar by establishing offsite solar opportunities and shared solar programs.

Solar Rights Act and Solar Shade Act

These acts initiated in 1978 are what have created the legal framework for solar power in California. The brunt of the Solar Rights Act focuses on empowering homeowners to install solar panels regardless of rules typically enforced by a homeowners association. Often, homeowners associations will keep homeowners from installing solar panels because it interferes with the landscape or aesthetic of a neighborhood. The Solar Rights Act shows California's strong commitment to solar energy by its desire to overrule homeowners associations and prioritize the supply of clean energy.

The Solar Shade Act provides limited protection against trees and shrubs on adjacent properties. Sometimes nearby plants might obscure a solar panel's ability to absorb light and produce power. This Act only goes into effect if trees/shrubs are planted after solar panels are installed.

Net Energy Metering

Net metering is when a consumer generates enough solar energy from their network that they are able to sell it back to the grid. For example, a customer might install a photovoltaic solar panel system on their roof, and in a given day, those panels might produce more electricity than their home needs. At night, or at other times of day when the home's energy use exceeds the system's output, the electricity meter will run backward to provide credit for the energy that wasn't used. Customers are only billed for their "net" energy use, hence the name "net metering."

Net metering plans vary from state to state. California is considered to have one of the best net metering programs in the United States in that there's no cap on how much you can sell back to utility companies. However, states like Arizona have virtually no net metering program, and many states will have caps on how much energy you can sell back to the grid.

What Solar Companies Operate in California?

According to a 2017 analysis by BestCompany.com, companies like Solar Spectrum and Sunrun are some of the top solar companies operating in California. A list of the top 10 solar companies in California is as follows:

1. Solar Spectrum
2. Sunrun
3. Horizon Solar Power
4. Dividend Solar
5. SolarCity
6. SunPower
7. Solcius
8. Vision (Ion) Solar
9. RGS Energy
10. LA Solar Group

This is based on criteria of what kind of equipment the company installs, what payment options are available, warranties, availability, viability, profile accuracy, and customer reviews. Total, nearly 2,500 solar companies operate in the state of California, including over 400 manufacturers and over 1,200 installers/developers.

Get on Board

Solar is becoming more and more popular around the country, and for good reason. It's a great way to decrease your carbon footprint and, frankly, it's getting cheaper every year. If you're a California resident, now is as good of a time as ever to get on board the solar train. With so many top solar companies offering different opportunities for financing, it's approachable for just about anyone.