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California’s New Residential Solar Rules

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California’s new solar regulations have made some overwhelming changes to solar installation. Even with fierce opposition from solar energy companies, the bill has made it through. While some of the rules are beneficial to homeowners, others will make it more difficult and expensive for homeowners to install solar energy.

In this article, we’ll explore the details associated with California’s new solar rules and also explain why now is the best time to go solar.

Get a FREE customized solar estimate from Photon Brothers!

Thinking about going solar, but wondering how California’s new rules will impact you? Not to worry– Photon Brothers will walk you through the entire process with expert, honest recommendations. Call us at (805) 351‑3371 to schedule your free custom solar consultation today. We’ll review your home’s size, location, and energy needs and then provide upfront pricing within your target budget. You can rest easy knowing that all installations are backed by our 25-year production guarantee!

Don’t want to wait? Click below to get a free estimate in just seconds!

Longer Payback Periods

California’s new solar laws may increase the payback period on your solar investment. For example, the laws require new homes built in the state after January 1, 2023, to have a solar power system installed. While this is a positive step towards reducing carbon emissions, it may increase the upfront cost of purchasing a new home as well as a longer payback period for the solar system.

Additionally, the new laws require larger solar systems for most homes. Although this will reduce the homeowner’s electricity bills, it may take longer for them to recoup the upfront costs of installation.

Overall, California’s new solar laws are a step towards a more sustainable future. If you’re looking for financing assistance, Photon Brothers is happy to help you navigate solar financing and apply any qualifying tax credits and rebates!

Batteries Required in Addition to Panels

Another interesting rule is that now batteries are required in tandem with commercial solar installations. While homeowners are not required to install batteries with their panels, batteries are highly encouraged to relieve strain on the state’s power grid.

Other benefits of solar energy systems include:

  • Energy independence: With a battery backup system, homeowners can use their solar-generated electricity even during power outages – which are a frequent occurrence in California!
  • Time-of-use savings: Many utility companies charge higher rates for electricity during peak demand periods. But with a battery backup system, homeowners can store excess energy generated during off-peak periods and use it during peak periods to reduce their energy bills.
  • Longer lifespan for solar panels: By using a battery to store excess energy, homeowners can reduce the load on their solar panels, which can help to extend their lifespan and reduce maintenance costs.

Overall, adding a battery backup system to a solar panel installation can increase energy savings and help homeowners to become more energy independent, reduce their reliance on the grid, and contribute to a more sustainable energy system. This is the ultimate goal for the new California solar laws, despite the extra costs involved.

Changes to Net Metering (NEM)

The newest version of net metering, referred to as NEM3, will begin to take effect in mid-April 2023. Under NEM3, users will get 75% to 80% less compensation from any extra solar energy they share with the grid. The previous compensation for extra energy was approximately $0.30 per kWH; however, under NET3, this compensation has dropped down to $0.05 per kWh.

The good news is that these rules will not affect either NEM1 or NEM2 users until their lock-in period expires or until they add more panels. Users will be grandfathered into their existing plan for 20 years. In short, if you installed the solar panels in 2020, you will be moved to NEM3 in 2040.

Why Now Is the Best Time to Go Solar

If you’ve been looking into a solar panel installation, now is truly the best time to go solar. Let’s explore some key reasons why.

Federal & State Tax Credits Increase Affordability

At the current moment, you can receive up to a 30% federal tax credit on your solar installation. This credit is provided under the Inflation Reduction Act and will be available until 2032.

California also has a Home Energy Renovation Opportunity (HERO) program that will pair you up with a local lender to fund the entire cost of the solar project. You then pay off this loan through an increase to your property tax bill over anywhere from 5 to 20 years.

Energy Independence Amidst Failing Grids

It’s no secret that America’s current energy grids are outdated and inefficient. They’re slowly failing and leaving people without power for extended periods of time. This can be incredibly problematic if you have medical equipment that needs to be powered at all times. Not to mention the inconvenience of being without electricity for your home’s heating and cooling system, kitchen, and Internet connection!

For this reason and more, installing solar panels – including a home battery system – is more critical than ever. You’ll have all the energy that you need even if the grids fail. On top of that, you’ll spend less money on energy as your reliance on the power grids wanes.

Photon Brothers’ 25-Year Production Guarantee

You’re not alone if you feel uneasy about making the switch to solar. Fortunately, Photon Brothers is here to relieve any worry you have. We offer a 25-year production guarantee that ensures your system will perform at 90% efficiency for 25 years. We also provide 25-year workmanship and performance guarantees!

Are You Ready to Go Solar?

If you’re thinking of switching to solar energy, call Photon Brothers today at (805) 351‑3371. We’ll schedule a FREE custom estimate, which includes a comprehensive upfront proposal. You can ask any questions you may have, get pricing and financing options, and learn about expected payback periods and energy savings. 

As one of Central Coast’s premier solar installers, we’re proud to have a perfect safety record and glowing 5‑star reviews from happy customers! 

You can also click below to use our nifty online solar calculator and see ballpark pricing in just seconds!

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