Ever since it was announced that California will officially become the first American state to make it compulsory for newly built homes to get solar panels, the question – ‘how to go solar in Orange County CA?’, has been on everyone’s minds. California’s Energy Commission has come up with reinvigorated energy standards which necessitate virtually all newly built homes to be built with solar panels. At present, about 20% of single-family houses are constructed with solar facilities built in, but then again if the new-fangled standards are accepted as anticipated, this percentage will increase sharply.
How to Go Solar in Orange County CA– What are the best Financing Options
Several solar solution services are able to propose their clients with an assortment of financing possibilities in order for them to go solar. The most easily available financing options are System Ownership and having a lease on the system or getting a Power Purchase Agreement (PPA). Since these two are the main options, it is important for all homeowners to methodically calculate the expected benefits and negatives that these choices offer. Here is a complete homeowner’s guide for selecting the right financing option –
System Ownership compared to Entering a Power Purchase Agreement (PPA)
What will the homeowner pay for?
- System Ownership – The price of a solar generation structure that covers approximately all of the house’s electricity requirements.
- Lease – A static once-a-month rate regardless of how much electricity is created. In a PPA agreement, a set amount of money is charged for every Kilowatt Hour produced.
What will the homeowner purchase?
- System Ownership – All machinery of the PV system together with solar panels and metering gear. Homeowners are also advised to purchase performance analysis software, prolonged service contract, and other choices. Hence, before even asking the question, ‘how to go solar in Orange County CA?’ it is important to know the costs of these contracts.
- PPA – This is basically getting contractually affiliated with a solar service company who will provide certain services that most probably do not come with too many purchase options.
What benefits does the purchase bring?
- System Ownership – All the gear, labor, municipal and resident taxes, the lowest standard guarantee, managerial correspondence (authorizing, etc.) and, occasional performance analysis – all of these benefits come free of cost for homeowners who opt for system ownership.
- PPA – Generally it includes labor, state and local taxes, administrative paperwork (permitting, interconnection application, etc.), processes and preservation, inverter spares, insurance, constant monitoring, and production warranties.
The tax implications that the homeowner will have to face –
- System Ownership –Homeowners must check with their tax consultant in order to determine whether or not they possess eligibility for the 30% Fed-Investment Tax Credit. In case their system ownership is being financed via a home equity advance, they might be entitled to a tax deduction. Hence, before answering the question ‘how to go solar in Orange County CA?’ all the tax implications must be considered.
- PPA – The solar service providers usually receive the 30% Fed-Investment tax credit. They might also receive viable depreciation tax doles.
What are the risks?
- System Ownership – For people who have System Ownerships, there is an added responsibility for operations and preservation expenses. They must at all times be mindful of system performance to warrant it is making the most of its energy manufacture. (Data analysis systems are crucial.)
- PPA – A Solar service provider may jump ship and stop the company altogether making it incapable to deliver operations and care as discussed in the contract. PPAs typically have rates that spiral over time and generally have long-standing obligations of over twenty-five years. The homeowner must discuss all the buyout possibilities with the provider, in case such details are not detailed in the contract. Some preservation possibly will not be covered in the PPA contract.
Gerry Goodman Real Estate Services helps its customers address the all-important question –‘how to go solar in Orange County CA?’ in the perfect manner. Considered to be the best in the business since over 25 years, Gerry Goodman is presently operating in Orange County CA, in the cities – Anaheim, Anaheim Hills, Yorba Linda, Newport Beach, Dana Point, Laguna Beach, Huntington Beach, Irvine, Tustin, and Aliso Viejo.