How Much, Solar Fred?

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Published on April 13, 2009 by Tor a.k.a. "Solar Fred".
Categories: Affordable Solar, Buying Solar, Los Angeles Solar.

Solar+Calculator How Much, Solar Fred?Dear Solar Fred,

Dude, I want to have solar panels, but I also want to make sure I can feed and clothe my kids. Give me a straight answer: How much for my 1800 sq ft home in Los Angeles?

Just the Facts Jim

Dear JTF Jim,

Dude, the short answer is about $5.75 to $7.50/watt. Happy? …. I didn’t think so.

I get this question all the time, and I wish I could give you a straight quote, but the truth is that solar is not a one-size-fits-all item that you can buy at the corner solar store. Not yet, anyway. A true, upstanding, no-B.S., solar installer can’t give you a really accurate or even a ballpark quote without knowing:

  • Where you live (or at least your zip code)
  • Which direction your roof is facing (preferably toward the South)
  • The amount of shade on the roof (preferably next to none)
  • The type of roof you have (standard asphalt shingles are easiest and cheapest)
  • And especially your electric bills for the last 12 months

So, let’s say I got all that info from you. You have an average $100/month bill and I sized your system to a 4000 watt or “4.0 kw DC” worth of solar panels. In terms of cost, that equals:

4000 watts x $7/watt (towards the middle of installed cost.) That’s $28,000. You’re saying, “Holy crap. 28,000 g’s? No way, Solar Fred!” But wait.

That’s before the California/LADWP rebate (subtract $16,138) and your 30% Federal Tax Credit applied after rebate (subtract $3,559). So bottom line, after I calculate the California rebate through the LADWP formula and the Federal Tax Rebate, what does this imaginary average system cost?

Around $8,303

Solar Fred Caution: Remember that a Federal tax credit is like a gift card for IRS. If you owe 5 bucks in taxes and have a 5 buck tax credit through solar, you only owe zilch to the IRS. If you owe nothing this year, you can’t get a refund, but you’ve still got a 5 buck tax gift card to use for the the following year(s).

In any case, $8,303 is better than 28 grand, for sure. That also doesn’t include the $922 bucks a year you’ll save in lower electric bills. (Could be more if rates rise faster.) Did I mention that the system pays for itself in about 9 years or how much it will increase the resale value of your home compared to other homes that don’t have solar? Do you like clean air? You’ll save a lot of it in addition to the cash.

See my archives and links about 0 down financing options, but my sincere advice is for you to find a solar installer and get a free quote. What can it hurt? It’s free. Now, go feed those kids.

Read the 4 brilliant comments below or add yours!

Pingback on August 7th, 2009.

[...] including your state, your roof, and how you finance it, how much electricity you use.  See How much, Solar Fred?.  Bottom line, all solar is local.  You might also read “What are the environmental and [...]

Pingback on September 14th, 2009.

[...] asked solar question people ask us. We’ve answered it previously in the aptly titled post, How much Solar Fred?. Here, we answer it for your listening enjoyment in our first ever hosted by Solar Fred. And boy [...]

Robert S. Ruppert Identicon Icon Robert S. Ruppert
Comment on October 14th, 2009.

How about selling SREC? Any feed back?

Pingback on February 10th, 2010.

[...] It’s the most frequently asked solar question people ask us. We’ve answered it previously in the aptly titled post, How much Solar Fred?. [...]

Bruce Jones Identicon Icon Bruce Jones
Comment on March 25th, 2011.

Solar Fred, If a business wants to build a large 1GW solar farm in Colorado and has property in the Xcel territory… a) can I connect into the grid and pump all the solar electricity I produce? or am I limited by Net Metering to the amount of electricity consumed by my small company? b) are there different incentives for businesses vs. homeowners? c) What is the best place in Colorado to build such a farm from a payback and rebate/incentive standpoint? d) What is the current rate/Watt Xcel will pay? I saw some legislation recently where they wanted to lower it. e) What if my company is based in another state, but owns property in Colorado? How does that affect the rebates and incentives if I build a solar farm in CO? Thanks

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