California's New Solar Requirement Will Save Dollars On Electricity Bills

California knows the sun.  Yes, personally.  They have a long lasting relationship and so many interdependencies.   Many historic moments have to do with the sun, and with California.  History is history,  and on May 9, 2018, history was made yet again. The California Energy Commission collectively approved the requirement that all new houses and low-rise apartments built from 2020 onwards incorporate solar panels. The endorsement was supported by builders, utilities, and solar manufacturers. Now, that is some super duper news! 

The committee provided a model solar panel system. A photovoltaic solar roof installation of 3,015 watts including nine modules rated at 335 watts each will produce about 133,630 kWh ~(3.015)(365)(30)(4.7) / (1 + (0.5%)^(30)) over a period of 30 years. The price of such a system is estimated at $3,381 ($1.12)(3,015). This means that the price per kilowatt will be $0.025 ($3,381 / 133,630). The daily energy generation was averaged throughout California with an annual solar panel degeneration of 0.5%, and it is estimated to produce 12.2 kWh (133,630) / (30)(365) daily per roof. This is almost two-thirds of the daily electricity requirement of an average California residence.

Average Solar Price Per Watt

The average electricity price per kWh in California is $0.193. This indicates expected savings of $0.168 ($0.193 – $0.025) per kWh produced on-site or $22,410 ($0.168)(133,620) saved beyond 30 years at a fixed energy price. Moreover, it is estimated that every installation will save $9,500 in power expenses per building over 30 years, which is in position with what we have learned.

The monthly lease payments will add $24.81 per month to the price of each building. This will add $8,931 ($24.81)(360) in contract expenses (principal and interest) to the building’s mortgage. Yet, it will save $62.25 per month in power costs or $22,410 in energy cost savings over 30 years. The effect is a net savings of $37.44 per month or $13,479 after spending on the energy producing equipment.

The California Energy Commission calculates that 117,000 new single-family homes and 48,000 multi-family units will be made in 2020. I calculate that this will add almost 735 gigawatts of additional power in 2020. This is comparable in capacity to two one gigawatt utility plants (735 / 365).

Price Drop On Solar

The reason that the price is so cheap for the solar system discussed before is due to the expected system cost decreases by installing it at the time of construction. Additional savings are anticipated from a large number of installations. A review of some of the reasons for this reduction in costs is discussed several articles around the internet. Nearly every division of expenses are expected to decrease with the new requirement.

Just make sure, and promise us here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations. We will strive to find you the best prices available. Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month.

Please visit our solar blog to find out more about the benefits of going solar.