Residential Solar Resources
Solar panels and battery storage
Installing solar panels on your roof is a good way to save on your electricity bill and power your electric appliances with 100% renewable energy. Use this solar savings estimator tool to estimate how much you could save on your electric bill. In addition, you can make your home more resilient to climate change and power outages by adding battery storage. You can also further reduce your energy bills by choosing when to charge your batteries and when to use the energy stored based on Time-of-Use information.
The price of solar panels has come down significantly in the past 15 years. Thanks to the passing of the Inflation Reduction Act of 2022, solar tax credits are being extended through 2034 and will start at 30% and step down to 22% in the last year of the program. As a result, the cost of installing a new solar panel system can be paid back in less than 10 years1. Many companies also propose financing with loan payments, which can likely be covered by the energy cost savings you will earn. Leasing can also be a low-cost option, but you would not own the panels and cannot benefit from the federal tax credit. Here are other items included in this tax credit under the Inflation Reduction Act:
- Battery storage when installed alongside a solar array
- Battery storage installed retroactively for a current solar panel system
If you want to get started and find out what type of system could best fit your home, visit this solar tool calculator.
Many large companies provide solar system installation services. They will be able to size your system to best fit your current and future needs and maximize your energy savings.
The Inflation Reduction Act
The Inflation Reduction Act signed into law by President Biden in August 2022 includes about $370 billion to fight climate change, some of it in the form of tax credits and rebates to help consumers save thousands of dollars on energy-efficient appliances, plug-in electric vehicles, home efficiency improvements, renewable electricity and energy storage for their homes.
A dedicated website has been created to help you determine which cars, appliances, and home improvements will qualify for the tax credits and rebates. The website will be frequently updated as details take shape, and we advise you to subscribe to receive email updates. Tax credits and rebates will be available for solar panels and battery storage.
QUESTIONS & SUGGESTIONS
If you have any questions or suggestions about this resource page, please email the Environmental Commission at environmentalcommission@losaltosca.gov.
References/footnotes:
1. In average in the US, a residential solar system will be paid back between 7 and 12 years (Greenlife solar). In sunny California, the payback period tends to be on the lower end. But payback times will vary depending on shading, sun exposure and size of system installed. Most solar panels installers will calculate your yearly electricity production and will estimate your payback period based on the proposed system. Make sure to have them run several scenarios to find your most cost-efficient option.
