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Friday, Apr 19, 2024

The Number

Solar to the People, a research and referral service for solar installation, has released a report on the cost to go solar in California. For the Los Angeles/Ventura counties region, the cost to outfit a house with solar power came to $18,298 – right in the middle of the pack. Ryan Willemsen, chief executive of Solar to the People in San Diego, said the number includes a federal tax credit of 30 percent of the installation cost, but it doesn’t include another money-saving incentive from the Los Angeles Department of Water & Power, so the actual costs for an L.A. resident might be slightly lower. He didn’t include DWP in the calculation because other regions of the state don’t have similar programs and he wanted comparable numbers. Willemsen noted that the solar industry is a bit confusing because the “size” of an installation is measured in the watts it produces, not the square feet of the panels. He added that the cost per installed watt has dropped in California over the past three years, but homeowners have bought larger systems so overall prices have remained relatively stable. The average residential project in the state produces 6.1 kilowatts a year, enough power for an average home – but there’s wide ranges in power requirements based on region. “Air conditioning – that’s the biggest factor,” he said. “With net metering, when you produce more power than you need, you get a credit on your utility bill. Usually in the summer, the panels are sized to produce more power than you need, and your credits roll over from summer to winter.” As for the San Fernando Valley – often called “America’s Suburb” – Willemsen said it’s the type of area that’s prime for solar. “Suburbs are the biggest market for solar by far – at least two-thirds of all installs are in the suburbs,” he said. “Urban areas are a lot harder because you have apartments.” – Joel Russell

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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