Getting Solar in Los Angeles Part I

Los Angeles has been a leader in solar power since the 1970s. We chose Pasadena, one of the cities surrounding Los Angeles, and it is one of the top areas where people are installing solar on their homes and businesses.  This is why we picked it as our sixth city in our ongoing series outlining the cost of solar power in different areas. Keep in mind the numbers we use are based on the average home size, average electricity usage and average family size in the Los Angeles area. 

As an Example

The home we picked is a single family home of about 1,300 square ft and a family of three live there. The two parents and their daughter do not have a pool or a hot tub in the backyard. They just use the air conditioning most of the year, for Pasadena has more warm days than cold days. The household monthly average is $150 a month for utilities.

Even though Los Angeles has higher than average electric rates, the home is well insulated, and it has modern doors and windows to help keep the temperature close to tolerable. They do use the air conditioning, but because of all the improvements, it doesn’t take as much energy to cool the home and it stays comfortable longer. 

When we enter in the address and monthly bill in the HahaSmart Price Checker tool, we find out that solar is affordable, and in areas like Los Angeles where everything is expensive, the payback is faster than average. The site recommends a 5.5 kW solar panel system and it gives a breakdown of the cost of the system and all the permits needed.

First, you will need the approval of the design and a permit to build the solar system. That engineering and permitting process would cost $798. Then if you add up all the equipment, the solar panels, the power inverters, the racking, the material needed to mount the panels, and other miscellaneous items come to about $6,908. Sales tax in Pasadena is 9.5 percent so it’s a little more. If you add the sales tax of about $657 it brings the total to $7,565 in equipment and permitting.

Installation costs  

Installation costs can vary, but at HahaSmart, we compiled data from 2296 different installers and we can say the cost range is from about $5,225 to $6,765 to install the solar panels. If we average the two numbers we get $5,995 as an average installation cost. It is important to shop around for the best installer for your needs. Some of the less expensive ones are not necessarily the best ones. On the other hand, many local installers are certified, they care about their work, and they are, many times, less expensive than national chains. We recommend that you talk to at least two different installers and find one that is the best for your situation.
 

If we add the grand total of $7,565 (product and permitting) and $5,995 (installation) we get $13,782 before local, state, and federal tax incentive programs. Because programs differ in every state, we are only applying the 30 percent federal tax credit. After we factor in the tax credit, the net cost of buying and installing a residential solar panel system the Pasadena area is about $9,648. Again it is important to check local and state governments for incentives and help with the cost. For example, Southern California Edison has some great programs for solar power that can really help homeowners out.

For more insight, check this out.

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