Pandemic stressing out the family finances? Turn your home and vehicle into a clean energy emergency fund!
Getting laid-off is stressful even in the best of times. In the midst of a pandemic, job loss and financial surprises can drain your savings account fast. Did you know that whether or not you have an existing solar energy system, you can tap into a combination of upgrade incentives and financing that can return money to you. A Solar, Plug-In Vehicle and Energy Storage lifeline!
Recently, a solar-powered homeowner asked Makello to quote adding a Level 2 electric car charger for their Nissan Leaf, an installation often priced at $500 or less. Most solar companies refuse to take these small jobs as they are unprofitable for the installer.
But at Makello, we look at things differently. We know from experience that with the dizzying array of Solar Power, Plug-In vehicle, and Energy Storage incentives and energy cost savings, energy upgrades can pay for themselves. When the homeowner shared that their rooftop solar was installed for free under a low-income residential solar program (SASH), and that they had been laid off due to the pandemic, we started crunching numbers to see what we could do.
We offered a plan to improve the homeowner’s cash flow and create a 6-month emergency reserve fund out of available incentives.
As you can see in the savings over time graph, the system is cash flow positive every year, meaning lower annual cost, through the term of the PACE financing, and then savings accelerates.
Incentive Finder – Makello’s own GIS mapping database uses the home’s geographic location to determine eligibility for a wide variety of energy upgrade grants, rebates, discounts and tax credits.
Optimize Upgrade – Makello’s own Energy Analysis software shows the optimal Solar, EV, and Energy Storage upgrade plan, for the eligible incentives. In California, benefits such as emergency backup power for home and vehicles, water pumps, air-conditioning, air-purifying and fire-fighting equipment can all be worked into the upgrade plan. In this case, Makello showed that a larger upgrade would tap into $23,448 in incentives, and give the homeowner more solar, energy storage, a second EV and Level 2 charger.
PACE program financing – The State of California offers a Property Assessed Clean Energy (PACE) financing plan. Homeowners can qualify based on a recent tax return or pay stubs. The financing does not appear on a credit report, is not considered a loan, does not trigger a property reassessment, and can transfer to the next home buyer.
Create a 6-month financial ‘lifeline’ – Makello’s “Lifeline” incentive payment program tracks the incentives and requirements, and allows the homeowner to choose the best time to draw on their earned incentives. In the example used here, a homeowner can decide after receiving the up front incentives to purchase a new or used Plug-In Vehicle, further reducing their monthly costs, or pay their most urgent bills, such as mortgage, food, and medical.
Makello’s GIS mapping database, uses county parcel location to help homeowners determine eligibility for a wide variety of solar programs. We also use mapping to help non-profit organizations to design programs in disadvantaged communities that promote solar energy and electric vehicle incentives for economic and environmental benefit.
Makello works with non profits and other agencies to create maps for Environmental Justice initiatives.
How the PACE Program works:
The PACE program is intended for those that can demonstrate the ability to pay. Homeowners provide a recent tax return or a pay stubs for income verification, and credit check, and Makello provides the Energy Analysis to show that the energy efficiency project will be cash flow positive.
Book a FREE 15 minute appointment to: 1) Find out how Makello can help you. 2) Discuss your energy needs. 3) Get a FREE Energy Savings Estimate.
PACE financing ranges from 5 to 30 years term for solar, 10 years for Energy Storage, and can be used for other energy efficiency improvements, such as electric panel upgrade, EV Charging, and a long list of energy efficiency upgrades. PACE can be as low as $0 down. It provides tax deductible interest.
For our homeowner in this example, Simple Payback is possible in 3.7 years through Annual Energy Cost Savings. That means it’s a good deal for a cash purchase or loan. For those on a fixed income, traditional loans might not be a viable option. In the cases where PACE financing is Cash Flow Positive, we can present the PACE option as an alternative to traditional loans and leases.
Makello provides full disclosure about PACE terms and program information, as well as programs offered through banks and credit unions. Please contact us and we’ll be happy to discuss the alternatives.
Recently, a solar powered homeowner inquired about adding a Level 2 charger for a 2013 Nissan Leaf, typically a $400 installation. Most solar companies would refuse the job due to low profit.
In Case of Emergency, An “Energy Upgrades Lifeline” Pays For Itself.
Makello rose to the challenge and used our Energy Analysis tool to present an “Energy Upgrades Lifeline” option that improves the homeowner’s cash flow and can provides a “6 Month Emergency Fund”.
Parcel level GIS mapping software made by Makello, is used to determine eligibility qualifications for a wide variety of energy upgrade grants, rebates, discounts, credits and deductions.
Makello works with non profits and other agencies to create maps for Environmental Justice initiatives.
The rooftop solar on the home was installed for free in 2012 by Grid Alternatives through the SASH program, for qualified low-income residential California homes. An Energy Upgrade Lifeline can work even if the property already has solar.
One of the homeowners was temporarily laid off due to the pandemic. An Energy Upgrade Lifeline can qualify for financing by the State of California based on prior year tax return.
Makello’s Ethical Energy & Cost Savings Analysis provides $23,448 Incentives upfront for adding more solar, energy storage, a 2nd EV and a Level 2 charger.
What makes the solution possible is a Property Assessed Clean Energy (PACE) financing method that does not appear on the credit report, is not a loan, does not trigger a property reassessment and can transfer to the next home buyer.
PACE financing ranges from 5 to 30 years term for solar, 10 years for energy storage, and can be used for other energy efficiency improvements. PACE can be as low as $0 down, it provides tax deductible interest, there are no pre-payment fees, and no credit minimum.
The PACE program is intended for use by those that can demonstrate the ability to pay. There are safeguards to protect against abuse, such as a soft pull credit check, income verification from a recent paycheck or tax return, and a requirement that the energy efficiency project is cash flow positive, as it is here:
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What makes the solution a “Lifeline” is that the incentives payments can be used as a reserve. In an emergency, the basic expenses such as mortgage payment, food, and medicine are met. The system is designed to be cash flow positive, meaning lower cost monthly and annually, than the baseline status quo.
Makello’s “Lifeline” Incentive Payment timing gives the homeowner flexibility to make decisions on what to do with the money and when to put the reserve to use. In this case, after 6 months, the homeowner can decide to use some or all of the Incentives to purchase a Plug-In Vehicle to further increase energy cost savings, or for another important use.
Simple Payback is possible in 3.7 years through Annual Energy Cost Savings. That means it’s a good deal for a cash purchase or loan. For those on a fixed income, traditional loans might not be a viable option. In the cases where PACE financing is Cash Flow Positive, we can present the PACE option as an alternative.
(Click to enlarge) As you can see in the savings over time graph, the system is cash flow positive every year through the 10 year PACE financing and then savings accelerates.
Book a FREE 15 minute appointment to: 1) Find out how Makello can help you. 2) Discuss your energy needs. 3) Get a FREE Energy Savings Estimate.
Makello’s Optimal Cost Savings Plan has other benefits for California in 2020, such as emergency backup power for home and vehicles, water pumps, air-conditioning, air-purifying and fire-fighting equipment.
Makello is ethical in our approach, offering full disclosure about PACE terms and program information, bank and credit union loan alternatives.
Makello is developing GIS services and creating maps useful to the solar power, electric vehicle, and energy storage industries, as well as for our teaming companies, including several non-profit organizations. Maps are an important method for analyzing and presenting data.
We will examine redlining and clean-air technology access by the San Diego African American community in this blog. See the editor’s note below on how we will be using the Census Bureau term African American as defined by the Census Bureau: Race for Residents of African ancestry or birth including both US Citizens and non-US Citizens. For more info on data sources and terminology, references are provided at the end of this article.
Makello works with non profits and other agencies to create maps for Environmental Justice initiatives.
Editors Note: Click to view Makello’s commitment to finding words and methods to accurately represent data while conveying inclusion of the appropriate demographic.
Makello began using maps to analyze data and learn about our community in 2019. From time to time, we intend to share some of the maps we’ve developed but there are challenges to presenting the data accurately and transparently, especially with regards to designations for Race, Identity and Ethnicity.
The US Census counts all people living within the Boundaries of the United States and Territories. The data collected is by Race, not citizenship status. The Census data uses terminology that can easily be misunderstood because of common usage of terms vs. the Census Bureau definition. The Census Bureau meaning of the term is often lost as the data filters down to the public through agencies and businesses.
The Census Bureau uses the terms African American, Asian American, Native American, Hispanic, White and Other to define Race. Citizenship or immigration status is not counted. The loss of context of these words may prevent accurate and full understanding of data. People may feel invisible or may be unintentionally misled.
You may have noted a few potential difficulties in the short list of the terms presented. That is where the struggle lies when attempting to represent residents without being US-Centric or Ethno-centric. Acceptable terminology changes through time, is understood differently in separate regions and countries, by different cultures and ethnicities. Individuals infuse meaning in words based on their life experiences, making classifications difficult.
Maps may focus on a specific demographic for any number of reasons. It can be difficult to adequately portray diversity on the map with charts or graphs. Please refer to the two examples below.
Makello is committed to the difficult task of finding words and methods to accurately represent data while conveying inclusion of the appropriate demographic. We make great effort to research and vet language. Language and identities change. Unfortunately, there is no all encompassing, perfect language for describing people. What one person thinks is a great label and strongly identifies with, the next person may reject or find offensive. We accept open and honest feedback and hope you enjoy the information we present.
African Americans in San Diego are concentrated in southwestern San Diego County.
The first question to answer is where are the communities with 10% or more of the African American residents? A map of the demographic data from the CalEnviroscreen 3.0 is the simplest method of discovery. CalEnviroscreen obtained demographic data from the US Census Bureau and retained the US Census Bureau demographic descriptors in their report. Our map above shows the population is largely concentrated in the area to the east of Downtown San Diego which will be the area we focus on for the purpose of this blog.
Why is the population so heavily concentrated in this area? With a special thanks to University of Richmond’s Digital Scholarship Lab, a look at the 1930s New Deal Era Home Owners’ Loan Corporation Redline Maps may help to answer this question.
The Home Owners’ Loan Corporation (H.O.L.C.) was created during the Great Depression New Deal Era and the program trained many home appraisers in the 1930s. The H.O.L.C. created a neighborhood ranking system known today as redlining. Grades were assigned to residential neighborhoods by local real estate developers and appraisers in over 200 cities. These maps and neighborhood ratings set the rules for decades of real estate practices. The grades ranged from A to D.
The Green Area- Grade A = Best: Always upper-middle-class to upper class White neighborhoods defined as posing minimal risk for banks and other mortgage lenders, as they were “ethnically homogeneous” and had room to be further developed.
The Blue Area- Grade B= Still Desirable: Neighborhoods with all or mostly White, U.S. born residents were defined as sound investments for mortgage lenders.
The Yellow Area- Grade C =Declining: Residential neighborhoods with working class and/or first or second generation immigrants from Europe. The housing stock was typically older and often lacking the current utilities of the day.
The Red Area- Grade D= Hazardous: These neighborhoods were considered to be “infiltrated” with “undesirable populations” such as Jewish, Asian, Mexican, and Black families. The neighborhoods were more likely to be located near industrial areas and the housing stock consisted of older, less well maintained buildings.
Are you ready to save money on solar power, EV charging or Energy Storage? Get an instant quote from Makello!
These grades formed the basis for federally backed mortgages. Many banks refused to lend to areas with the lowest grade, making it impossible for people in these neighborhoods to become homeowners and preventing them from building generational wealth.
As you can see from the map, many of the areas that were labeled undesirable in the 1930s are still the areas where African Americans are concentrated. The practice of redlining has had a long term impact on segments of our community that has yet to be resolved.
1930s redlining still impacts African American communities 90 years later.
Makello is an advocate of green transportation options, providing FREE Energy Savings Estimate services including an analysis of potential electric vehicles to fit your needs, so it was only natural we take a look access to public charging stations African Americans have in the former redlined areas. The results were………….. well, see for yourself.
Less than 10 public electric vehicle charging stations are located within the African American communities.
The data from the US Dept. of Energy Alternative Fuels Data Center may be mapped and compared to the CalEnviroscreen Demographic Data. The neighborhoods with the highest concentrations of African American Residents do not have easy access to public electric vehicle charging stations. One consequence is this discourages San Diegans with electric vehicles living outside these communities from driving to businesses in these neighborhoods and spending money. The lack of access to public charging stations also discourages the residents of these neighborhoods from purchasing electric vehicles because they don’t have the ability to conveniently charge their vehicle. This is especially true for multi-unit dwellers where there are structural and parking challenges to overcome when installing EV charging stations. This creates additional barriers to EV ownership, keeping the community from reducing pollution, developing business opportunities, and creating jobs in their neighborhoods.
Book an appointment to receive Makello’s Ethical Energy Savings Report, which is the result of a detailed trade-off study of discount utility rates, grants, rebates, tax credits, and equipment options, to determine the fastest payback and highest return on investment to meet your home, business and vehicle energy needs.
The fee for the Ethical Energy Savings Report is refundable (less the 3rd-Party $15 utility data access charge) or credited towards our installation services, after you attend the presentation meeting and complete a 5 minute survey after permission to operate.
Includes up to 5 hours research by the Makello team, and 1 hour Q&A, by Makello’s Ethical Energy Efficiency Expert.
We’re shifting gears now and will be examining the energy cost burden in the City of San Diego. The energy cost burden data was obtained from the 2019 San Diego Climate Equity Report and overlaid the demographic data from the CalEnviroscreen 3.0. Generally speaking, the energy cost burden was calculated as a weighted average for each census tract and divided by the median household income for each census tract to obtain the energy cost burden score. For more detailed explanation of the energy cost burden, please visit the San Diego Climate Equity Report page.
The white outlined areas in the map posted below have the lowest energy cost as a percentage of Median Household Income and the dark green areas have the highest energy cost burden. Most of the African American San Diegans are in the minty green areas and have an energy cost burden of 1.3%- 2.7%. There is one area with 18-28% of the African American residents and a 4-5.4% energy cost burden.
This cost puts an additional financial strain on those residents with more modest incomes and often prevents the residents from using air conditioning or heaters in bad weather, increasing some health risks especially for elderly and health challenged individuals. Or the residents may use older, less energy efficient equipment, increasing energy cost and pollution.
Energy cost impacting African American communities.
One potential solution for reducing the energy cost burden and pollution is solar energy and battery storage. We mapped solar adoption rates from the San Diego 2019 Climate Equity Index report and again, overlaid the demographic data from CalEnviroscreen 3.0. The areas outlined in white have the least access to solar energy. Many African Americans are living in areas where at best, there are per capita 0.05 solar photovoltaic systems resulting in these residents having a low ability to decrease pollution due to electricity production and consumption in the home, reducing overall energy cost, and protecting against power outages.
African American communities in San Diego have low access to solar energy systems.
Returning to redlining, banks’ historical unwillingness to loan money in these communities have left many residents underbanked and underserved. Solar Systems, Electric Vehicles, Battery Storage Systems are investments that can improve personal finances and the quality of life for anyone that can afford a purchase, or qualify for financing. Beyond traditional loans or leases, community members can use the State of California’s Property Assessed Clean Energy (PACE) financing for home upgrades and energy upgrades. PACE is not a loan and does not appear on an individual’s credit report. PACE funds are repaid on the annual property tax bill.
This concludes our discussion for now. Please stay tuned for additional articles where we take a look at other issues and demographic segments of San Diego Residents.
The value homeowners realize from having solar panels installed varies from state to state in the U.S. This value is most often measured as a solar payback or investment return. The solar payback period refers to the length of time it takes to realize enough electricity savings from a solar system to pay for the cost of installing it. The shorter the payback period, the greater the return on investment.
Book a FREE 15 minute appointment to: 1) Find out how Makello can help you. 2) Discuss your energy needs. 3) Get a FREE Energy Savings Estimate.
Any size solar array reduces the electric bill and provides access to discount utility rates. Makello’s Optimal Cost Savings determines the fastest payback and lowest upfront cost for the site characteristics and owner goals.
What is the typical payback period for residential solar installations in San Diego?
To determine a typical payback period and return on investment for a residential solar installation in San Diego two factors must be considered: 1) the cost of installing the solar panels; 2) the revenue earned by the solar system. The costs are typically easy to determine. A solar company will usually quote one fee that includes the cost of the solar panels and all approvals, permits and inspections for the authority of jurisdiction and SDG&E.
The revenue produced by a solar system is a function of the amount of energy it produces each year compared to what would have been paid to the utility if the same amount of energy had been purchased from the utility without the installation of solar panels.
Book an appointment to receive Makello’s Ethical Energy Savings Report, which is the result of a detailed trade-off study of discount utility rates, grants, rebates, tax credits, and equipment options, to determine the fastest payback and highest return on investment to meet your home, business and vehicle energy needs.
The fee for the Ethical Energy Savings Report is refundable (less the 3rd-Party $15 utility data access charge) or credited towards our installation services, after you attend the presentation meeting and complete a 5 minute survey after permission to operate.
Includes up to 5 hours research by the Makello team, and 1 hour Q&A, by Makello’s Ethical Energy Efficiency Expert.
Fundamentally, the amount of solar energy a residential PV system produces depends on weather conditions and climate. And most importantly, the amount of sunshine (the incident solar radiation or solar insolation in a given location). No surprises here that Southern California hits it out of the park on energy generation from solar panels. You can go weeks without seeing a cloud in San Diego. Electricity generation of up to 1,650 kWh per year per 1 kW of peak DC solar panels installed makes San Diego a very attractive location for solar panels.
Open air flow under carports can cool the modules and increase annual production. Beware of solar companies that tout extra short roof jacks and stylish tapered bumper edges that restrict airflow, causing overheating and reduced production.
Moving down to the bottom line, the financial incentives available for residential solar energy systems can make or break an investment decision. These vary widely across the US. In California, the most important incentives are the 26% federal solar tax credit and the NEM 2 net metering law passed by the California PUC. If we run numbers for a typical household, in San Diego, with a $250 per month SDG&E electric bill, through the “solar panels cost and savings calculator” we see the recent average cost of installed solar systems in San Diego and SDG&E electric rates, for all site location types, including clay tile, flat roof and ground mount systems that are more costly.
To what extent do high SDG&E electricity rates contribute to return on investment for solar users in San Diego?
San Diego topped a ranking of installed solar energy capacity and ranked second in installed solar energy capacity per capita in major US cities, according to a report from the California Environment Research & Policy Center. In so doing, San Diego surpassed Los Angeles, the previous first place holder, and trailed only Honolulu, Hawaii in the per capita ranking.
Let’s dig a little deeper and look at whether it’s actually worthwhile for a San Diego resident to invest in a solar PV system. To do so, we’ll make use of residential solar information resources of utility energy costs in major cities and metro areas across the country. To zoom in on the likely cost of actually having a residential PV system installed in San Diego, we’ll also make use of our tried and true, local guide to solar installation companies and residential solar cost calculator.
What we note from this is that SDG&E, the electric utility serving San Diego, has some of the highest electric rates in the nation. This, along with the exceptional amount of sunshine in Southern California, is why San Diego has the shortest payback times in the nation (and therefore the highest return on investment) for residential solar panels in California.
What incentives are available, in San Diego, to help with the cost of installing solar panels?
There are a variety of residential solar incentives available across the US. As the Solar Energy Industries Association explains: “Effective direct incentives can take a variety of forms depending on the particular situation and administrative abilities of a given state. Some states have chosen to offer tax credits, others to offer up-front rebates administered by state agencies or utilities, and still others offer performance-based incentives that are paid by an agency or utility over time based on kilowatt-hour production.”
Are you ready to save money on solar power, EV charging or Energy Storage? Get an instant quote from Makello!
Sorting through all these incentive programs, much less doing all the paperwork required to qualify for them, can be daunting. In all likelihood, you will be able to find and work with a solar finance/installation company that will assume much of the bureaucratic burden. Make it a point to include this on your checklist when shopping for the right provider.
For certain Low-Income qualified homes, it may be possible to have a solar system installed for free, through subsidies. Makello will tell you if you qualify, even if it means there is no sale opportunity. That is one of the ways we contribute to making solar accessible to everyone!
California continues to be a nationwide, and worldwide, leader when it comes to solar and “green” energy policies and programs. The most important incentive, by far, is the 26% federal solar tax credit and the NEM 2 net metering law that gives you almost full retail value for excess solar power exported into the grid during the day.
How much does San Diego’s high degree of sunshine contribute to the attractiveness of solar there?
Although we have touched on this topic, measuring the amount of solar energy a residential PV system is likely to generate over any given period of time is not as simple or straightforward as it might appear at first glance. It’s important to be sure you’re comparing apples to apples here.
By scientific convention, the amount of solar radiation available per unit area in a specific location is measured in kilowatt-hours per square foot per day, or for those more physics-minded, in megajoules per square meter per year. Other variables come into play, such as whether or not “direct” radiation, aka “direct-beam” radiation, or “diffuse” radiation is being measured. The former, as the term suggests, only measures the light that hits the earth’s surface directly, not any scattered or reflected sunlight. Diffuse radiation is a measurement of scattered sunlight while “albedo” radiation measures light reflected by the earth’s surface. As we have seen, 1 kW DC of solar panels installed in San Diego produces up to 1,650 kWh of energy per year. In comparison, many places in the north-east of America produce around 1,200 kWh per year. Using these numbers, San Diego produces up to 37% more power than the same panels would if they were installed in the north-east. This is a major contributor to making San Diego one of the most profitable cities in America for utilization of solar panels.
In San Diego, peak annual solar production is achieved by optimal orientation (180 degree south at 32.5 degree tilt), no near object and low horizon shading, with excellent air-flow underneath the modules and frequent module washing. Summer peak production is 17 degree tilt at 180 degrees south. Winter peak production is 47 degree tilt at 180 degrees south. If your south facing roof is shaded, Makello can install on the north roof with reverse tilt to the south. East tilt is 12% less than south and west facing tilt is 10% less than south.
There are a lot of variables surrounding the use of a solar power system, and you may have wondered if solar is a better option for your home. While a lot of talk has circulated in regards to the supposed benefits and value of solar, as well as overall function, there is good news for anyone residing within the San Diego, California area – we have calculated the variables of solar power for you.
Book a FREE 15 minute appointment to: 1) Find out how Makello can help you. 2) Discuss your energy needs. 3) Get a FREE Energy Savings Estimate.
Would you buy 25 years of solar power based on your Last Year Use, knowing that lower cost energy efficiency solutions to replace the inefficient water pumps, A/C, incandescent lighting and 10 year old appliances can cut the system size in half? The up front cost savings of energy efficiency can pay for emergency backup power.
The power source of your entire household is one of the most important considerations of home ownership. And, rather than hanging you out to dry, we have resolved to answering the most important, nagging questions: “is solar worth it” and “what is it going to cost”. Rather than wasting hours upon hours playing detective, we have summed up the most important information you need in order to make an informed decision about solar, for your family.
The Initial Cost
For the average residential system, typically purchased within the San Diego area, a 6 kilowatt installation is recommended. For this article, we are going to utilize the available data in order to provide an initial overview of cost for as many curious people as possible. With this in mind, the upfront cost of installation generally starts around $19,200 before incentives. The total price is based on an average cost of $3.20 per watt.
Are you ready to save money on solar power, EV charging or Energy Storage? Get an instant quote from Makello!
Incentives of Solar
Once you take available federal tax credits into consideration, the total cost drops considerably – once the 26% discount is taken into account. The initial quote immediately drops to $14,200 with the aforementioned savings. The most important detail to take note of, is that the credit is for individuals who actually purchase their own solar system.
No doubt you have heard or seen advertisements from a variety of solar companies, offering leases, in addition to Power Purchase Agreements, if you find yourself in the market. The issue surrounding promotions such as these is that, because a separate company owns the solar system, the consumer will not receive the tax credit if they are leasing – the solar company does. These types of agreements typically mean, however, that the developer is solely responsible for the overall upkeep of the system, in addition to the financing arrangement and installation. The consumer is simply charged a fixed rate for their consumption of solar power.
Many leasing companies do not install reverse tilt modules, pole mount, awning, carport or ground mount.
Because, realistically, families do not have $19,200 in cash at their disposal for the purchase of a new solar system, loan or leasing may be a viable option. The leasing situation isn’t much different when compared to that of a utility company, aside from the fact that the rates are a bit more affordable. Aside from the benefit of lower rates, the savings from leasing are consistently lower once compared to the outright purchase of your own solar power system by cash or loan. However, when a lease is your only option, it is worth time spent researching solar companies that offer a lease-to-own alternative to leasing. Benefits might include lower payments, in addition to benefits beyond the 26% federal tax credit, such as additional tax incentives.
Differences in Solar Energy Systems
When analyzing a typical solar system, the monthly average is 800 kWh (kilowatt hours). This number is based off of a 6kW system producing an annual average of 9,600 kWh in the first year. While these rates can change significantly with more advanced solar systems, which offer higher installed system capacity, these systems are able to produce 8% to 20% more kWh per watt. Along with the long-term savings increase, and a higher initial investment, homeowners will observe an overall decrease in length of pay off.
San Diego Utility Pricing System
As we watch rates continuing to climb throughout the San Diego area, the pricing system has integrated a slew of fundamental alterations. Even the way utility companies price power overall has faced significant changes, at least up until 2016. Before 2016, homes were based on a 4-tier pricing system in order to classify homes in a more affordable manner. Prior to 2017 it was changed to a 3-tier system and, currently, we stand at a 2-tier cost structure as rates continue to rise. “Super user” surcharges have also been imposed for households deemed beyond tier 2.
Annual Savings
Solar offers a significant advantage over tiered pricing systems, and assists in saving money on subsequent monthly bills. Considering how they are San Diego’s largest coastal and inland electricity providers; we have based our calculations on SDG&E’s residential pricing system.
Book an appointment to receive Makello’s Ethical Energy Savings Report, which is the result of a detailed trade-off study of discount utility rates, grants, rebates, tax credits, and equipment options, to determine the fastest payback and highest return on investment to meet your home, business and vehicle energy needs.
The fee for the Ethical Energy Savings Report is refundable (less the 3rd-Party $15 utility data access charge) or credited towards our installation services, after you attend the presentation meeting and complete a 5 minute survey after permission to operate.
Includes up to 5 hours research by the Makello team, and 1 hour Q&A, by Makello’s Ethical Energy Efficiency Expert.
Before installing a solar system, households typically consume an average of 800kWh per month, or an annual 9,600kWh. Because a residence generally consumes more power after installation, potential savings tend to range from 9,600 to 12,000kWh. Homeowners living within inland San Diego can expect, by our calculations, to save upwards of $4,000 each year. However, in coastal San Diego, the savings decreases a tad with the moderate coastal climate, topping out at $3,000 annually. Essentially, your solar system would pay for itself in around 3-4 years, assuming a 6% annual average increase in SDG&E utility rates.
A Bit More Consideration
Although this brief rundown only begins to illustrate the feasible savings presented by a new solar power system, savings may be influenced by additional factors. The size of your system, requiring a larger installation, offers further annual savings, and enables the system to make recompense for itself. Every homeowner, interested in solar, should take it upon themselves to study the topic further, before deciding to opt for a solar system.
Overheated attic lofts and bedrooms can cool off under the shade of a solar array, reducing A/C and fan loads.
