Safe Harbor for Solar & Battery Incentives in 2026: What Owners Need to Know
If you’ve been thinking about adding solar or battery storage to your property, 2026 brings a mix of opportunity and urgency. The landscape has shifted significantly over the past two years, and understanding what’s changed could make a substantial difference in your long-term savings.
The Big Change: Tax Credits in 2026
● Residential personal-use 30% solar and battery tax credits ended in 2025.
This means both commercial properties, and residential properties where homeowners who can legitimately classify part of their energy usage as business-related, such as a home office, rental activity, or EV used for business, may still qualify for meaningful incentives.
Why Timing Matters
There is a critical window to act. Contracts signed and a minimum of 5% Safe Harbor fee received before July 4, 2026 may still qualify for incentives, even if adjustments are made later through change orders. This gives owners flexibility while locking in potential financial benefits.
Exploring Your Options in Residential Business Use
Every home and energy setup is different, but most scenarios fall into a few categories:
● NEM Expansion (e.g., 3-module add-ons) Ideal for homeowners looking to expand an existing system without losing the cost savings from a grandfathered utility rate.
● Solar + battery combinations Increasingly popular due to rising electricity rates and grid instability.
● Battery-only installations A strong option for homes already equipped with solar.
Within each of these, eligibility and savings can vary due to several factors.
Here are some examples of common scenarios for comparison:
● Whether the system is designed for backup power vs. cost savings
Battery Systems: A Growing Trend
While the solar market has slowed, battery adoption is accelerating. Homeowners are prioritizing energy independence and protection against outages.
It’s also worth noting:
● A battery designed purely for cost savings can be $4,000–$6,000 less expensive than a full backup system.
● Battery installations are more complex, requiring more labor, which affects pricing and margins.
Market Reality: A Volatile Few Years
The solar industry has experienced major turbulence:
● Equipment prices have fluctuated due to tariffs, inflation, and supply chain disruptions
● The market saw a sharp contraction in 2024–2025, with many companies shrinking or exiting
● 2026 is shaping up to be one of the lowest-volume solar installation years in recent history
Credit: Ohm Analytics dashboard marketplace
At the same time:
● Electricity rates have increased ~8% annually since 2018, doubling roughly every 7–9 years depending on rate structures
● The average solar PV cost/watt in 2025 ranged from $4.50 to $7.50 per watt, with regional averages around $6/watt, due to the 1kW CEC-AC add-on NEM Expansion limit.
Credit: CALSSA member newsletter. Click to become a CALSSA MemberCredit: Ohm Analytics dashboard marketplace
What This Means for You
Despite market uncertainty, the fundamentals still favor energy investment:
● Utility rates continue to rise steadily and SDG&E is already the highest cost utility power in the U.S., at $0.91/kWh Peak Rate (EV-TOU).
● Battery adoption is increasing due to real-world reliability needs
● Incentives still exist—but are now more nuanced and tied to usage type
The key question is no longer just “Should I go solar?” but rather: “How can I structure my system to maximize savings under current rules?”
Final Thoughts
2026 isn’t the easiest year to navigate solar decisions—but it may be one of the most strategic.
If you’re considering solar or battery:
● Evaluate whether any portion qualifies as business use
● Understand your rate plan and energy consumption patterns
● Act before key deadlines to preserve eligibility
The opportunity hasn’t disappeared—it’s just become more tailored.
There’s a variety of options available for Residential Business Use NEM Expansion, for existing solar. Green Energy EPC by Makello, Inc has many hundreds of Current Customers with Net Energy Metering registrations that are eligible for an Alumni Discount. Click on the option that best matches your add-on Solar Only, Solar-Battery, or Battery Only NEM Expansion cost summary, to see a contract that is available for you to fill out, sign and return by May 1, 2027. Of course, Makello.com will be glad to help you through the process.
Solar Only
Solar & Battery
Battery Only
0% Business Use
25 % Business Use
100 % Business Use
Remember you have until 2030 to build. You only need to pay a minimum of 5% before July 4, 2026 to Reserve your Solar Tax Credit and Depreciation incentives!
You’ve received an architectural application for a rooftop solar installation so what do you do next? Aesthetics are often the focus of solar installations in HOAs, but there are technical issues to be taken under consideration when the board of directors or architectural committee evaluates an application for a solar installation. Is the board or architectural committee prepared for the task?
First and foremost, governing documents pertaining to solar installations need to be reviewed by the board of directors together with the association’s attorney to ensure the governing documents are up to date. The solar industry is a rapidly changing industry with new advancements in solar technology being made regularly. Keeping the governing documents concurrent with Civil Code and solar technology developments can provide HOA management, board and architectural committee members with a solid foundation with which to evaluate solar applications and navigate the review process.
HOAs with shared roofs such as town homes, multi-story buildings or carports may also wish to work with the HOA attorney to develop guidelines regarding which roofs solar modules are allowed to be installed and how the shared roof space will be allocated. Including a solar installation expert in the rules development process in order to help your association determine which portion of the roof is suitable for solar installations is a prudent decision. Required setbacks, obstructions, shading, roof shape, tilt and which direction the roof faces all impact the solar potential of a roof. Due to site factors and code requirements, some roofs may have little or no solar potential while other roofs may have amazing solar potential. It would be beneficial for the association to determine how to handle these issues ahead of time and address how to equitably divide up the roof space to avoid unnecessary conflict. Creating a map to document the usable roof space with good solar potential and allocation of that space would aid interpretation of the HOA guidelines.
Makello works with non profits and HOAs to create maps that meet organizational needs.
Education for HOA managers, board and architectural committee members is also a good idea. It isn’t necessary to take a course in photovoltaics suited to solar industry professionals. There are free or low cost introductory courses that provide information on the basics of solar to help the non-professional or consumer understand the fundamentals of solar systems with minimal time commitment. Understanding the jargon and electrical concepts can help managers, HOA board, and architectural committee members feel more comfortable when reviewing an owner’s architectural submission for a solar installation. Being comfortable with the requirements and having a basic understanding of solar principles helps the association avoid missteps and misunderstandings.
The SDGE Energy Innovation Center has free or low cost courses, https://www.sdge.com/energy-innovation-center. Solar Energy International, https://www.solarenergy.org/, is another resource for online introductory courses in solar energy. A third resource for solar education is Heatspring, https://www.heatspring.com. A final resource in North American Board of Certified Energy Professionals, https://www.nabcep.org, or NABCEP for short. NABCEP is mostly geared to professionals but they do periodically offer free introductory webinars or training for the non-professional or consumer.
An empowered HOA Board or Committee Member discussing solar energy.
There are a few things homeowners in HOAs can do to make the approval process for solar installations be less stressful.
Number one is to make sure you have the current version of all HOA governing documents that include the rules regarding installing solar i.e. the Rules & Regs. Architectural Guidelines and application and/or CC&Rs. Be ready to provide the rules to your solar installer because the installer needs to be aware of HOA specific issues pertaining to the installation that may impact system design.
Find out whether or not your contractor needs to indemnify the association and how much insurance the contractor needs to carry. Confirm your contractor meets the requirements. Not all contractors are willing to indemnify the association or wish to insure for the amount the association requires.
Make sure you understand who is going to be responsible for maintenance and repair of the roof under the solar installation as well as maintaining insurance for the solar installation on common area roofs. This may impact your decision to proceed with the solar installation. It is also a good idea to find out if the association is going to be conducting roof repairs in the near future that may impact your solar installation. You may be responsible for covering the cost of removing and re-installation of your solar system so the association can conduct roof repairs.
Give yourself time to obtain and evaluate bids, fill out HOA forms and gather supporting documents. Find out what the submission procedures and deadlines are for your architectural application. Solar installations are complex and not likely to be successfully submitted in a day or two.
Together Everyone Achieves More
Additionally, don’t forget to check the insurance and licensing of the installer on the California State Contractors License Board https://www.cslb.ca.gov.
Beauty is in the eye of the beholder and HOA owners can be divided in their opinion on the aesthetics of solar installations. Being prepared with knowledge about solar and having the correct procedures in place can help minimize issues and take the stress out of architectural applications for solar system installation.
Makello is an authorized distributor for Green Energy EPC CA Lic #978836
Did you know that, whether or not you have an existing solar energy system, you can tap into a combination of up-front incentives, financing, to build up your savings into a 6-Month Emergency Fund and lower monthly costs?
Once-considered luxury items, such as Solar Power, Plug-In Vehicles, and Energy Storage, now payback quickly for cash purchases and are within reach for most homeowners, due to up-front incentives and lower total monthly costs from loan or Property Assessed Clean Energy financing.
Makello can provide you with a FREE Energy Savings Estimate! If you share your utility data with us we can create a solar energy system that is specific to your needs. We will NOT share your data.
Our model can also show the cost saving benefits of a Plug-In Vehicle or Energy Storage system, or both, in addition to your solar system. All of our team works to get you the most comprehensive, thorough Energy Analysis in the San Diego area as quickly as possible.
The software engineers are constantly updating our computer model to reflect the most current utility rates and product costs. We have a dedicated GIS analyst who can qualify you for as many rebates and incentives possible. Our Energy Efficiency experts can also provide other solutions to reduce energy costs such as appliance changes or switching utility rates. Press one of the buttons to see how much you can save!
Synopsis: An EV “Ride N Drive” event takes a supernatural detour, when riders temporarily, uncontrollably and inexplicably become “Energy Zombies”, smitten by the overpowering experience of driving electric for the 1st time, with instant torque, no noise and zero emissions.
Click to watch Joyrider “Fozzy’s Makello Story”. Do you think Joyrider should be a series? Leave a comment in YouTube, Like, and Share!
Actors: William May-Kidd: Charlie Johnson; Ping “Tek” Han: Songxuan Liu; Flint “Fozzy” Bjorn: Jarod Donahue.
Mythology
In 1916, Camille Jenatzy, a race car driver known for his red beard as “the Red Devil”, reportedly contacted an unknown driver-mechanic named Otto Stiggler by Telegraph. The message requested for Otto to take his place for hire, in the first race to the top of “Pike’s Peak” Colorado Springs, Colorado, driving a “La Jamais Contente”, the first Electric Vehicle to break the 100km/hr speed record, modified to improve driver position aerodynamics.
Illustration of the original “La Jamais Contente”, first automobile and Electric Vehicle to reach 100 km/h, in 1899.
Photo of Camille Jenatzy and his wife riding in the “La Jamais Contente”
While the vehicle was “in transit from Belgium”, Otto was instructed to practice often at Pike’s Peak, to learn the dirt race course’s hairpin turns, dips and ruts, while using his preferred selection of many gas powered vehicles of the day.
”La Jamais Contente” arrived 2 days before the 1st Pike’s Peak Race, and was transported by carrier truck directly to the starting line to preserve battery charge for the course. By the time the prototype vehicle was unpacked, the 1916 Pike’s Peak course access was about to close.
The condition of this 1943 road is a significant improvement to the early Pikes Peak races.
Otto managed to convince a departing race attendant, Ali Madohan, to allow him to drive the course. Ali gave Otto a signal flare to use when he reached the finish line at the top of Pike’s Peak, or in case of emergency.
According to Ali, with help from a Good Samaritan, Otto struggled to squeeze his lower body into the recessed cockpit. The shape of the cockpit required the upper body to be reclined in an almost supine position, below a nearly fully enclosed canopy that reporters described as “a metal coffin with a “cupola” shaped protrusion for the driver’s head”.
After pushing the vehicle to the starting line, Ali received a “ready sign” hand signal through the “cupola” opening slit, and the attendant waved the starting flag.
“La Jamais Contente” leapt from the Start Line quickly and silently, but within seconds, according to Ali’s statement, “there was a simultaneous flash of light and a crack of thunder,” which reportedly knocked several birds to the ground, temporarily stunned, and sent Ali ducking for cover with his hands over his ears.
This mysterious nearby object was found to transmit wireless power.
These three lights in a nearby field are pictured receiving wireless power.
Ali was quoted as saying, “I heard a mixture of barking and laughing. The barking seemed to come from the trees above and below both sides of the road. The laughing sounded like it came from inside a big metal drum, and it reverberated off the canyon rock walls, until the car disappeared into the hills beyond the 3rd turn.” Any objective observer would have assumed Otto was howling with laughter.
Upon witnessing a flare that originated from the finish line area, Ali recorded an unofficial pre-trial time of 20:45.90.
Otto and “La Jamais Contente” did not return to the Start Line to qualify for the 1916 Pike’s Peak race. The first Penrose Trophy was awarded to Rea Lentz with an official record time of 20:55.60, driving an internal combustion engine vehicle.
After several days missing, and at the request of Otto’s family, local officials formed a search party. The carrier truck was reportedly found near the former site of the Tesla Experimental Station, which was a wireless power transmission test facility.
Nikola Tesla sitting under his transmitter in his Colorado Springs lab surrounded by millions of volts.
Nikola Tesla created an experimental station outside of Colorado Springs to test wireless transmission of electric power.
A printed telegram transmission from Jenatzy was located in the truck and detectives contacted authorities in Belgium for more information. The truck was found to have been purchased anonymously at auction from the lot of decommissioned assets originating from Tesla’s Experimental Station.
Colorado detectives learned that the unidentified carrier truck who called himself “Dino” had fled the area. A rambling note in the vehicle, alleged that Otto was not the race driver of the modified “La Jamais Contente”, and that a man who identified himself as ‘Camille’ was seen near Otto before the race, assisting with preparations.
The family of Camille Jenatzy was interviewed and they reported to authorities in a sworn statement, that Camille Jenatzy died in 1913, and that the original “La Jamais Contente”, was in Belgium, and that no one had contacted them from the United States about shipping Camille’s prize winning, record setting electric race car.
The vehicle was never recovered and the circumstances surrounding Otto’s disappearance remains a mystery, as to who was the driver, Otto, “Dino”, “Ali”, “Camille”, or as some believed, Camille’s ghost, or possibly Nikola Tesla himself.
What some attribute to folk lore, others say is conspiracy, yet others say is fact. But is it possible that wireless power was part of “La Jamais Contente” unofficial Pike’s Peak record? Tesla had recently designed, tested and de-commissioned the preliminary version of the “Wardenclyffe Tower” nearby in Colorado Springs. Tesla’s invention later proved capable of transmitting power wirelessly through the atmosphere, via a propagating wave through the Earth’s mantle, as he claimed, to any location around the world.
Nikola Tesla designed and built the Wardenclyffe Tower in Long Beach, New York between 1901 and 1902 to experiment with wireless power transmission. Click on the photo to learn more.
About The Creators
Joyrider is a fictional story loosely based on actual events, for the purpose of entertainment, sharing and exploring the concept of the “EV Grin”, which is the infectious joy and smile that instantly takes over a person when they first experience driving electric.
Makello is a diverse team with backgrounds in software engineering, environmental science, management, GIS, and home and business energy services. We are committed to help reduce greenhouse gas pollution and work with non-profit and community organizations to help educate the public about Solar Panels, Plug-In Vehicles, & Energy Storage benefits. If you are interested in any of these technologies in your home, contact us for a FREE Energy Savings Estimate! With rebates and incentives they can be cheaper than you may think!
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.
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.
The Mobile Energy Ecosystem provides power to food vendors at Qualcomm Stadium
Wipomo’s Mobile Energy Ecosystem provided off-grid solar power to the Food Truck vendors at the Qualcomm Stadium Swap Meet, while the crowds of visitors enjoyed their meals without the noisy gas generator emissions.
Wipomo’s Mobile Energy Ecosystem provided off-grid solar power to the Food Truck vendors at the Qualcomm Stadium Swap Meet, while the crowds of visitors enjoyed their meals without the noisy gas generator emissions.
During the day, while the sun was shining, the sun provided power to the food truck vendors. After the sun went down, the on-board batteries provided the stored solar energy. When the batteries were depleted, electric vehicles exported power through the micro-grid to keep the party going.
This graph shows approximately how much you pay SDGE per year using various amounts of electricity, specifically as an average of the Coastal and Inland areas.
“SDGE’s Electricity Rate Hike”: How to Read It If your home uses about 900 kWh of electricity a month (found on your electricity bill), find 900 on the horizontal axis, and then go straight up to the orange line (how much SDGE charges after the rate hike in September 2013). Your annual bill is approximately $3,000, which is close to $1000 more than before the September 2013 rate hike. Compare that to your potential electricity bill with Wipomo’s Energy Ecosystem: almost nothing every year.
SDGE’s Annual Charge to You The annual cost of electricity from SDGE was made from SDGE’s own data posted on their website, here. We took the average cost of the Coastal and Inland areas at each monthly kWh usage (after the rate-hike) and multiplied that by 12 months. The result is the average annual cost of electricity for a given monthly electricity use.
To calculate how much SDGE raised your electricity bill, we did the same procedure with the cost of electricity before the rate hike, and then found the difference.
You can see from the graph: the more you use, the more money it costs. On the other hand, the more you use, the more Wipomo’s Energy Ecosystem can save for you. Your annual cost could be nearly $0 if you buy it upfront. You may even see that SDGE pays you if your system produces enough energy. SDGE will still charge the standard service fees for being connected to their electricity network, but on a per-year basis, a typical San Diego home (4 person household, 4 bedroom, 2 bath), could save as much as $5,000 annually, depending on their actual electricity needs. If you can’t purchase the system, it’s likely not a problem. In many cases, you can save instantly by financing the Energy Ecosystem. That means your monthly payments could be lower than your electric bill. What about the initial cost of purchasing the energy ecosystem? See below.
Lifetime Energy Cost – 25 years: How to Read It
The lifetime saving graph captures a fuller picture that includes the cost of purchasing the energy ecosystem. And in this case, it also captures the cost of fueling 1 vehicle. Just like in the annual graph, find how much energy you use per month on the horizontal axis. As an example, we’ll take 900 kWh again. The red line shows how much you will likely pay SDGE for electricity in 25 years. At 900 kWh, that’s about a whopping $250,000! What could you buy with $250,000 if you could keep it? With Wipomo’s Energy Ecosystem, you can keep the lion’s share of it. The green line shows how much you will likely pay for electricity if you buy only the Solar Photovoltaic part of the Wipomo Energy Ecosystem. At 900 kWh, the 25-year-cost comes in at a much lower $115,000, approximately. That’s almost $150,000 that you don’t have to pay SDGE. The blue line shows you can save more if you use an electrically powered vehicle. If you break free from SDGE, you can do the same from the gas companies: power your car with your own fuel from solar photovoltaic electricity at less than 1/3rd the cost of gas.
The Cost of Doing Nothing The Cost of Doing Nothing is calculated using Wipomo’s cost projection models. We started from the base scenario: a residential home with 1 Toyota Tundra. We used this base scenario across different amounts of energy consumption (kWh). Our model assumes that SDGE continues raising its rates at its historical level across all tiers: 6% per year. The model also calculates the annual fuel cost of a vehicle fuel rating of about 22 MPG and average annual use of 15,000 miles. The model used a flat rate cost of fuel.
Wipomo Solar Power We’ve been developing this model for years so that we can hand over nearly instant quotes. Our model calculates exactly how much Solar Power you need (in kW and dollars) to produce any percentage of energy use for home or business. At every point along the horizontal axis, the cost of purchasing solar is in the final life-time cost.
The life-time cost of purchasing solar explained.
We try to be as detailed as reasonably possible, so within the lifetime cost, we’ve added a few other figures: 1- the cost of fueling your vehicle, for comparison purpose 2- the lifespan of solar modules and 3- future SDGE rate hikes. For point 2, solar modules actually have a very long lifespan of up to 30 years. Their efficiency does start to degrade slowly, however. So by year 25, the solar modules can produce only approximately 80% as much energy as they can in year 1. If your solar modules’ energy production falls below your consumption, you will have to pay SDGE the difference. That’s why we also include future SDGE rate hikes because you will be paying the higher rate. Still, you’re saving a lot of money and you can always add more solar modules later.
Wipomo Solar Power + 1 Electric Vehicle Adding an electric vehicle into the mix increases your savings. In this graph, we modeled switching out an inefficient vehicle for a Super Prius: a Prius upgraded with Wipomo’s EV battery pack and plug. You can charge your vehicle with your own solar electricity. The model accounts for needing more solar modules to cover the extra electricity you need for an electrically powered vehicle. Although there is an upfront cost of purchasing a new EV or upgrading a Prius to a Super Prius, over the lifetime of the solar system and electric vehicle, you save even more money.
If you are tired of paying SDGE, tired of electric energy rate hikes and ready to see how much money and how quickly solar photovoltaics and/or electric vehicles can save for you, call, email or request a quote today. -Joseph Ocampo, Wipomo Research Intern
