Category: News

A few years ago, residential solar power experienced a huge boom, thanks to the economic recovery as well as numerous federal and state subsidies that reduced costs for homeowners. Manufacturers and installation companies sprang up overnight to take advantage of the rapidly growing industry.

However, increased competition and improved manufacturing efficiency resulted in shrinking costs and margins. Many solar panel manufacturers have gone out of business. The same is true for residential solar power contractors, which has left homeowners without the technical support of the people who installed their systems to begin with.

Many residential solar power installation companies struggle to stay in business for more than a few years.

To get a sense of how solar installers and contractors have fared in recent years, we referred to Solar Power World, which publishes an annual list of the top contractors of the country. We pulled the top 30 companies from the “2013 Top 100 Residential Solar Power Contractors” list, and checked to see how they were doing today, five years later.

Our findings were as follows:

• 16 are still in business
• 1 was acquired by another company and was still in business
• 2 were acquired by companies which have since shut down their residential operations
• 11 have closed

Of the 30 installers with the greatest installation volume in 2013, 13 are no longer providing services to homeowners today. And for every large installer that has failed over the last five years, dozens if not hundreds of family businesses and fly-by-nights have closed up shop in that time.

Homeowners who need their solar power systems serviced, only to find that their installer is no longer in business, face difficult choices.

Consider a homeowner who pulls her electricity bill out of the mailbox one day and sees that it’s $200 higher than it should be. She checks her solar power system monitoring app, and finds that production has decreased significantly, suggesting that something is wrong.

She digs through their drawer of old paperwork and finds the contact information for the contractor who installed her system. She calls the phone number, and it’s disconnected. She tries to check their website, but gets an error message.

So now what? Well, if the installer used high quality components, then it is likely that the manufacturer’s warranty will cover the cost for new parts. However, in most cases labor is not covered. You will be able to get another contractor to replace the malfunctioning components, but you will be responsible for the cost of installation.

Quality equipment can save you money in the long run, particularly if the installation company who installed the system goes under.

We have previously discussed the importance of considering the expected lifespan of solar panels when choosing a solar power system for your home. When comparison shopping, you want to be sure to buy a system that will continue to perform in the long term, both in terms of reliability and minimizing the rate of degradation of the panels.

This is why we often recommend SunPower modules:

• Their panels show extremely low degradation rates—the X- and E-Series have shown degradation rates of less than 0.25% per year in a variety of tested climates. This means you can expect their panels to put out about 95% of their expected production after 20 years.
• SunPower stands behind their products, with the best warranty in the solar industry—25 years, ‘bumper to bumper.’

If you’re thinking about having a solar power system installed, carefully research the track record of the contractors you’re considering.

Solar system manufacturers are only half of the equation when it comes to choosing a system. To ensure that your system operates to its fullest potential, you need to choose an installer with the necessary expertise and experience.

Installers that lack specific experience with solar installations—due to being recent startups or having expanded out of other sectors, such as HVAC, roofing or general electrical work—may make errors that result in degraded performance or a shorter lifespan. These issues can result in a company going out of business, potentially leaving you without technical assistance when you need it most.

It’s critical to consider the history of a solar power installation company when deciding if they are right for you. If they have been installing solar power products for many years and have a lot of good reviews, then it’s likely that they will be there when you need them most.

This is why many homeowners trust Capital City Solar as their contractor of choice. We have been serving Northern California for more than 16 years, and have the track record to prove it. But don’t take our word for it. Check out our reviews:

• 5 stars on BBB
• 5 stars on Google
• 91 stars on Yelp
• 9 stars on Solar Reviews
• 8 stars on Facebook

If you are considering whether a solar power system is right for your home, we’re here to help. We don’t use high pressure sales tactics. Our goal is to give you the information you need to make the decision that’s right for you. To learn what Capital City Solar can do for you, contact us by calling 1-916-782-3333, or send us a message using our contact form.

Many homeowners express hesitance about having a solar power system installed on their home, simply because they’re unsure as to what the process involves. Will their home be disrupted by installers for days or weeks, with panels and construction materials cluttering up the yard? Will it take months to bring their system online?

To help you understand what to expect, here’s a brief outline of the solar installation process.

When you submit a call request, we’ll get back to you as soon as possible to collect some basic information.

If you call us or submit an online request for a free estimate during our office hours, at most you will have to wait a few minutes to speak to one of our representatives. During the day, our typical response time to online requests is 5 to 10 minutes, at most. If you submit a request while we’re closed, you can expect to get a call back from us first thing in the morning. Once you’re on the phone with us, we’ll gather some basic information about what you’re looking for from a solar power system.

A key issue we want to highlight: Many homeowners are extremely nervous to talk to us, let alone have an advisor come to their home. This is because many companies engage in high-pressure tactics to try to force customers to sign a contract on the same day. We have had customers who have been given a hard-sell by three or four installation companies. Some of these companies cold-call people out of the blue, or even show up on their doorstep unannounced.

We do not use high-pressure tactics. We have been around for 16 years, and plan to be around for many more. That’s why we treat every customer as a customer for life. We want to make sure that you have all the information you need to make a decision you can be happy about today, tomorrow, and 20 years from now.

Once we have an idea of what your goals are for a solar power system, as well as your concerns, we will schedule a site assessment.

On the agreed upon day, one of our advisors will visit your home to gather detailed information about your property.

Obtaining the maximum possible performance from a solar power system requires having an in-depth understanding of your property. What direction or directions does your roof face? How will we have to prepare your roof in order to install the system. Are there trees or other obstacles that cast shade on your roof at certain times of the day?

To answer these and other questions, one of our advisors will carefully inspect your property, taking measurements where necessary. In addition, we will ask you about your typical energy usage, whether you own or expect to own an electric vehicle, and other details about present or future choices that impact your energy consumption habits. For PG&E customers, having your account number handy when you first call us is extremely helpful, as PG&E has a solar contractor line that we can call to gather your usage history prior to the visit at your home. This will save you a lot of time you would otherwise have to spend finding and gathering old energy bills.

We use all of this information to determine what size system will meet your needs, the best possible installation configuration, the projected electricity production, and the estimated cost of installing the system (assuming you’re not considering a lease option).

Once a site assessment has been conducted, we encourage homeowners to take some time to consider their options.

After the assessment, we will present you with information about what to expect from a home solar system, given the details and restrictions of your home and property. Don’t worry, we’ll sit down with you and explain everything, and answer any questions you might have. We can also help you understand alternative approaches to funding, such as obtaining a solar loan, or even leasing a system.

This is a serious decision. We generally expect homeowners to take at least 2 to 3 weeks to make a decision.

Many customers we work with do a considerable amount of shopping around—some of them get as many as 5 to 8 quotes. However, don’t base your answer strictly on price point. Be sure to ask a lot of questions, such as:

• Do you outsource installation work to subcontractors?
• Are you NABCEP PV Certified?
• How long have you been in operation?
• How many systems have they installed?
• What does the warranty cover, and for how long?
• Who is responsible for fulfilling the warranty? Will you have to haggle with a manufacturer located across the country or overseas, or will the installer handle everything for you?
• What is the expected useful lifespan of the solar panels?
• Are you properly licensed for solar power installation? If so, C-46 Solar or C-10 Electrical? (Be sure to get their license number.)
• If they damage your roof, will they cover the cost of repairs?

Write everything down. Be detailed and thorough in your questioning. If you’re asking about the warranty, ask about each element of the system (inverters, panels, wiring, etc.), how long the warranty covers that item, and what the cost will be to you to repair the item in question.

A big item that most homeowners aren’t aware of—many warranties don’t cover labor, and only offer a 10 to 12-year product warranty. A 25-year performance warranty is standard, but 25-year coverage for labor is not.

Then, follow up. Go online and check their reviews on Yelp, Facebook, Google, and the BBB. Research the company to make sure that it’s been in business as long as they say, and that any claimed licensing is accurate.

If you choose to work with us, it will take 2 to 3 months for us to obtain necessary permits, but the installation itself usually only takes 1 day.

Once you have made your decision and signed an agreement with us, we can start the process of obtaining the necessary paperwork. In addition to obtaining required building permits, we will also help you to identify potential subsidies you are eligible for. This includes federal and state rebates, tax credits, incentives offered by local utilities, and more.

But once the big day arrives, you won’t have to wait long. In most cases, installation only takes a single day, though larger and more complex situations can require a second day of installation. But installing the wiring, racking, inverters, panels, and energy meter is a surprisingly fast process. Before you know it, our installers and equipment will be out of the way, and you can step back and see the finished product installed on your roof. But there’s still one last step.

The local government and utility will need to approve our work and give final approval to connect the system to the grid and go live.

After we’re done, a city or county representative will check to make sure all of our work is up to code. We then send all the paperwork to your local utility. If necessary, they will also send out a rep to ensure the system is in proper working order and grant final approval to energize the system.

If you like, we can provide you with instructions on how to turn your system on yourself. Otherwise, an installer will be out within a couple of days to start your system up, and ensure that everything is working properly.

But we don’t stop there. We will schedule a follow-up appointment to review your system’s energy production to ensure that you are getting the performance we promised. And if you ever have any questions, just call us and ask for help!

If you have any questions about the solar power system installation process, or are considering having a system installed, contact us by calling (916) 782-3333, or send us a message using our contact form. We’ll be happy to answer any questions you have!

The California Energy Commission’s update to the state’s Building Energy Efficiency Standards in May 2018 included a big surprise for builders and homebuyers. Most new single-family homes and low-rise multifamily residences built in the state will be required to have solar power systems installed during construction.

All 5 members of the CEC voted to approve the requirement, despite estimates that home prices will increase by $8,000 to $18,000 after it goes into effect in 2020. The unanimous decision gives some insight into just how eager public advocates and California agencies are to reduce reliance on the state’s energy grid.

But what does this mean for homebuyers and developers? What do they need to know? Here’s a rundown on some of the most important aspects of the new building requirement.

Solar power systems which meet the minimum sizing requirements won’t have enough capacity to zero-out energy usage.

The minimum energy production of a pre-installed system will be 2 to 3 kilowatts, depending on the size of the home or building. But the average energy production of solar power systems installed in California is around 6 to 7 kilowatts.

The majority of the solar power systems installed according to the California requirements will not be capable of completely offsetting energy usage. In fact, even during daylight hours, even moderate energy consumption will likely require tapping into the grid to supplement energy output from the solar power system. This means that many homeowners won’t be able to take advantage of net energy metering, the system by which homeowners can sell energy back to utility companies. Consequently, they will still face hefty electricity bills during periods of high usage, especially as time-of-use prices continue to increase.

Those in the market for a new home would be wise to ask questions about the production capacity of the pre-installed system.

Those with homes without natural gas service will face particularly high energy bills.

The new California standards were developed based upon electricity demand from homes with electricity and natural gas service. That is, homes that rely on natural gas for heating and cooking.

For new homes without natural gas service, homeowner will face especially high overruns in their electricity usage. Homeowners considering a home without natural gas will want to consider the feasibility of starting natural gas service. Alternatively, it would be prudent to make sure the pre-installed system has a production capacity of at least 6 kilowatts.

An alternative is to consider having a solar power system expansion installed after buying a home, especially if you have a plug-in electric or hybrid vehicle.

Those on the market for a home may have to wait until 2021 to ensure their home comes preinstalled with a solar power system.

While the new requirement comes into effect at the beginning of 2020, many homebuilders obtain the necessary permits for single- and multi-family residences up to a year in advance. Whether a new home build requires solar panels or not depends upon when the permit is pulled, rather than when construction actually starts.

As a result, SunPower estimates that only about half of the 165,000 residences built in 2020 which fall under the new requirements will have to comply.

Despite the increase in new home prices caused by the new solar requirement, many homebuyers will still enjoy a net monthly savings from the get-go.

According to the CEC, the solar power requirement will increase home prices by anywhere from $7,993 to $17,730, depending on location. However, the benefit-to-cost ratio for the 16 climate zones analyzed in the CEC’s report ranges between 1.7 to 2.3 over the period of a 30-year mortgage. Thus, for every dollar spent on the system, it’s expected to reduce energy costs by $1.70 to $2.30.

In total, the CEC estimates that the average homeowner will pay an extra $40 per month on a 30-year mortgage but will save $80 on their energy bills. However, some believe that cost of buying and installing required solar power systems will be as much as 50% lower than the CEC’s estimates. This is because installers won’t have the typical costs associated with customer acquisition and will be able to do projects in bulk.

Homebuilders will be responsible for covering the cost of installing required solar power systems.

The CEC’s new building code was designed for maximum flexibility, rather than having a centralized fixed procedure that might be impractical in some housing markets. One consequence of this is that builders are responsible for covering the upfront costs of buying and installing solar systems. Generally speaking, they have three options:

1. Contract directly with solar power installers, then tack the price onto the project, just as they would for optional upgrades.
2. Have customers pay cash up front.
3. Work with a solar company to negotiate a solar loan or lease.

It is advisable for builders to take advantage of the time leading up to the 2020 solar installation requirement byexploring their options in depth. If you are a builder or developer looking to find a partner for your solar installation needs, contact Capital City Solar by calling (916) 782-3333, or send us a message using our contact form.

On the day that your home solar power system in installed, it’s probably going to work great. Your panels will most likely meet the production estimates provided by your installer for many years to come. But as with anything else, your system is going to age, and begin to decline in efficiency.

Different products show their advancing age in different ways: Cars become increasingly unreliable and fragile, laptop and cell phone batteries hold less and less of a charge, a TV’s picture begins to fade, and so on.

Solar panels show their age through performance degradation—a decline in how much electricity they generate.

Have you ever looked at a roof that was 20 or 30 years old? Missing tiles, dry rot, mildew—exposure to the elements is not kind to building materials. Now imagine leaving your phone outside for even a few days, let alone 20 years. It’s safe to say it wouldn’t last long.

But that is the challenge faced by solar panel manufacturers: to create a product that will withstand exposure to sun, wind, and rain for decades. And somehow, they have done just that.

The trade-off is that the power production of a solar power cell declines over time. After many years, the transparent surface yellows or browns, hot spots develop, solar bonds degrade, and a variety of other changes occur.

How quickly do solar panels degrade?

The rate of degradation can vary significantly, depending on factors such as date of manufacture, build quality, level of exposure to the elements, and more. A solar panel built in 2005 would likely degrade faster than one built in 2015. A high quality solar panel will probably degrade more slowly than a cheap panel made by an anonymous Chinese manufacturer.

For some time, the general rule of thumb was that panel production degraded at a rate of about 1% per year, compounded. This meant that a panel was expected to operate at 82% efficiency after 20 years, 74% after 30 years, and 66% after 40 years.

However, recent research suggests that this has been overstated to some degree. A meta-analysis of 11,000 solar power installations found that the median degradation rate was 0.5% to 0.6%, meaning for every panel that declined more slowly, another declined more quickly. The mean average degradation rate was 0.8% to 0.9%.

Why the discrepancy?

Manufacturing quality has a huge impact on the rate of solar panel output degradation.

As we mentioned above, the quality of a panel makes a big difference in its lifespan. In studies, low quality panels weigh down the average, degrading at rates meeting or exceeding that old rule of thumb standard of 1%.

Lower quality systems are also more prone to more significant malfunctions which limit performance. For instance, in a study of a 20-year-old solar power system which experienced degradation of 0.8% per year, it is discussed how most strings of modules in the system degrade at 0.4% to 0.6% per year. But a single string degraded at a faster rate, reducing the system’s performance as a whole. Issues like those observed in the study, such as flawed solder connections producing hot spots, can crop up in any system. However, these flaws are more likely to occur in poor to average quality systems.

On the other hand, high quality panels, such as those manufactured by SunPower, show much lower degradation rates. In a 2013 study, to ensure that their degradation models matched reality, SunPower examined 266 large-scale installations of previous generations of SunPower panels, as well as 179 non-SunPower sites. They found that the non-SunPower systems had degraded at a rate of 1.25% per year, while the SunPower systems had degraded at 0.32% per year.

Based off of the data gathered from this research, SunPower anticipates that their Maxeon modules—used in their X-Series and E-Series products—will degrade at a rate of 0.17% per year, and up to 0.29% per year in hot, dry climates. Their expected average degradation rate is less than 0.25% per year, across a broad range of climates and installation conditions.

But doesn’t this all boil down to differences of a few tenths of a percent? Does that really matter? It does, because yearly degradation compounds over time. Below is a comparison of the output of solar power systems over a 50-year period, with degradation rates of 0.25% (SunPower’s expected average), 0.4% (an excellent rate of degradation), 0.8% (the mean average found in some studies), and 1% (the old standard).

Degradation at a rate of 0.25% to 0.4% per year ensures that your solar power system continues to produce more than 90% of its original power production for 25 years. But with degradation of 0.8% per year, production drops below 90% before 15 years have passed. The old standard of 1% degradation means that you barely make the 10-year mark with +90% production.

It’s one thing to estimate future electricity production. But what guarantees are there that a solar panel will perform in the long-term?

Well, until recently, SunPower offered a power warranty for their systems, guaranteeing 95% efficiency for the first 5 years, and then degradation of no more than 0.4% per year for the next 20 years. This would mean that SunPower panels were guaranteed to produce at least 87.6% of the electricity they generated when new.

But recently, SunPower improved their power warranty. Now, they guarantee 98% production for the first year, and degradation of no more than 0.25% per year for the following 24 years. The warranty guarantees that the power output at the end of the 25^th year will be at least 92% of the Guaranteed Peak Power rating.

Compare the rates of degradation described above with SunPower’s old and new warranties in the chart below.

As you can see, even panels with a consistent 0.4% yearly decrease in energy production drop to 90% by the 25^th year, while SunPower guarantees their panels to beat that by about 2%. Meanwhile, “average” panels with degradation rates of 0.8% will have dropped to nearly 80% by year 25.

By buying high-quality solar panels that are warrantied to preserve their capacity to generate electricity over the long-term, such as those made by SunPower, you ensure that you continue to get what you paid for, year in and year out. Investing in high-quality solar panels maximizes your energy savings, as well as your home’s resale value.

If you’re considering purchasing a new solar power system, and want to learn more about how to ensure that it continues to serve you well in the decades ahead, contact Capital City Solar by calling (916) 782-333, or send us a message using our contact form.

You likely don’t think about which way is the ‘right way’ to face your solar panels—the direction which the flat surface of each panel should face—but solar power system installers certainly do. The energy production of a solar panel depends entirely on the amount of sun it receives. This is why solar panel systems perform better in sunnier areas, and homeowners with less shade on their roofs enjoy improved energy production.

Consequently, the direction that a solar panel faces determines how much energy it can produce. For the last few decades, conventional wisdom among solar experts has held that south is the best direction to face solar panels for installations in the Northern Hemisphere.

To understand this rationale, consider the alternatives. If we were to face panels to the east, they would collect more light in the morning, but would be in shade towards the latter half of the day. The opposite would be true for panels facing west—less light in the morning, more in the evening.

For someone trying to find a good middle ground, this leaves north and south. For those of us in the Northern Hemisphere, there would be no good reason to face panels to the north, as the sun is always somewhat to the south of us. Panels pointed northward would be a disaster, as they would always be facing away from the sun!

This is why installers have always faced solar panels to the south. However, the tilt varies according to your latitude. The farther norther you are, the steeper your panels are tilted to the south—panels in Seattle will be pitched more steeply than panels in San Diego.

But the universal constant has been that panels installed in the Northern Hemisphere are pointed southward. To give you an idea of the difference this makes, a 5-kW system installed in Roseville with panels facing due south will produce about $1,215 of electricity (8,165 kWh) over the course of a year, while a west-facing system will produce $970 (6,475 kWh) of electricity.

That’s a fairly big difference. All else being equal, pointing your panels due south maximizes your solar power system’s sunlight collection and energy production.

But… what if all things aren’t equal? What if there’s another factor that comes into play? Well, such a thing is happening right now.

With time-of-use pricing coming into effect, many homeowners may benefit by facing their solar panels westward.

As we’ve discussed previously in our blog, PG&E, SMUD, and other electric utilities throughout California are in the process of transitioning to time-of-use pricing. Under time-of-use (TOU) pricing, the rate you are charged for the electricity you use varies depending on when you use it.

All year long, between 9 pm and 9 am, when demand is low, consumers are charged a very low ‘off-peak’ rate of about 8.5 cents per kilowatt-hour (kWh). Starting at 9 am, when most families are out of bed, the energy rate increases by more than 70% to nearly 15 cents per kWh.

In the summertime, there’s an even higher ‘super peak’ rate between 4 and 7 pm, when prices surge to more than 37 cents per kWh—more than 330% higher than the off-peak rate, and 150% higher than the peak rate.

To put this another way, $100 of electricity at the off-peak rate would cost more than $173 during peak hours, and more than $430 during super peak hours,

Southward facing panels produce the most energy around midday—when you aren’t home to take advantage of it. Facing panels to the west generates energy when you need it most.

Facing solar panels to the south is essentially a compromise that maximizes energy production throughout the day, and annually. This is fine if your biggest goal is to maximize how much electricity you produce.

But this doesn’t take into account the extremely high cost of pulling energy from the grid during costly super peak hours.

Looking at how the TOU pricing schedule breaks down, ask yourself: would you rather have your solar panels produce about the same amount of energy all day long? Or would you prefer your system to produce more electricity towards the end of the day, when you and the kids are all at home and using electricity, and electricity happens to be much more expensive? Probably the latter, right?

This is where the traditional approach to facing panels to the south really fails. At about 5 PM, home solar power systems with panels facing due south only produce 15% of their peak production. This means that these homeowners have to rely heavily on utility-sourced energy, right when it’s most expensive under TOU pricing. On the other hand, panels facing to the west—towards the direction the sun sets—produce 55% of their peak output at 5 PM. That’s a big difference.

A system with the panels facing westwards will produce about 14% less electricity year-round, but in the summer will only see overall production reduced by about 1%. But because those panels are producing energy when it’s needed most, studies have shown that homes with westward facing panels reduce the amount of electricity drawn from the grid during periods of peak demand (and cost) by 65%, versus 54% for homes with panels facing to the south. A difference of 11% may not seem like much, but when you’re talking about energy prices that are more than 4 times the base price, it makes a huge difference on your energy bill.

This is why we encourage our customers—as well as homeowners still deciding whether solar power is right for them—to talk to us about their electricity bills and energy consumption habits. For many homeowners, maximizing overall production by aiming their panels south may be the best approach. But for some, especially those with TOU price schedules, it may be best to look to the west.

Obviously, there are often other factors to consider, such as the directions that your roof faces, the presence of trees that cast shade on your roof, and more. Our experts take all of these variables, as well as your priorities and your family’s habits into consideration when designing the ideal solar energy setup.

To learn more about how we work with you to maximize the electricity bill savings you enjoy with a home solar power system, contact Capital City Solar by calling 916-782-3333, or sending us a message using our contact form.

Back in January of 2018, the United States imposed import taxes of up to 30% on solar energy equipment imported into the country. Many feared that the tariffs would put the brakes on the explosive growth of solar power in the US.

Unfortunately, the industry did experience setbacks. The Solar Energy Industries Association estimated that a total of 23,000 jobs would be lost due to layoffs by panel manufacturers, as well as installers and sellers. It’s currently estimated that 260,000 Americans are employed by the industry.

But despite these cost hikes, new solar installation projects have continued at a breakneck pace.

In the first three months of 2018, develops installed solar power systems with a total generating capacity of 2.5 gigawatts. This figure represented 55% of the total capacity of all new power projects, dwarfing natural gas- and wind-based projects.

Experts anticipate that the pace of new installations will slow, and that the rate of new installations will be flat, year-over-year, at approximately 11 gigawatts. For perspective, based on the California Independent System’s (ISO) estimate that 1 megawatt can power 750 homes simultaneously, 2018’s new solar installations will be sufficient to power 8.25 million homes.

The rate of installations is expected to grow in the near future, reaching 14 gigawatts per year by 2023.

At the same time, the anticipated cost of electricity produced from solar power is dropping precipitously.

Before ground is broken on new large-scale energy projects, developers ensure that there will be demand for the electricity produced in the future by soliciting bids for a power purchase agreement (PPA).

In a PPA, a company or organization agrees to buy a set amount of electricity for a contracted period of time, at a negotiated rate. This allows organizations to take advantage of solar power, without having to come up with a large-sum investment ahead of time.

By looking at the PPAs negotiated for projects still in development, we can get a sense of what energy prices will look like in the future. And right now, it looks like electricity produced via solar power is going to be cheap.

Earlier this year, Nevada Power, a utility company owned by mega-investor Warren Buffett’s holding company Berkshire Hathaway, signed PPAs for six new solar farms. These new farms will have a total production of over 1 GW. In these agreements, Nevada Power has agreed to buy the energy produced by these farms for 25 years. For one solar farm, Nevada Power secured a rate of only $21.55 per megawatt-hour, or just over 2 cents per kWh. But this rate will be adjusted to account for inflation at a rate of 2.5% per year, maxing out at $29.24 per MWh (2.9 cents/kWh).

The truly jaw-dropping deal was one in which Nevada Power will buy power at a flat rate of $23.76 per MWh, or just under 2.4 cents per kWh. But with the price remaining fixed despite inflation, it’s anticipated that this will equate to a current energy price of about $17.95/MWh (1.8 cents/kWh).

Current projections suggest that solar power will be by far the cheapest source of electricity in the United States in the near future.

For comparison’s sake, the U.S. Energy Information Administration anticipates that the levelized cost of electricity (LCOE)—the true cost of energy before factoring in subsidies—for common energy sources in 2022 will be (per kilowatt-hour):

• Coal: 11.91 - 13.01 cents
• Natural Gas (Combined-Cycle): 4.9 - 5.01 cents
• Natural Gas (Combustion Turbine): 8.51 - 9.87 cents
• Nuclear: 9.26 cents
• Wind (Onshore): 5.91 cents
• Hydroelectric: 6.17 cents
• Geothermal: 4.46 cents
• Biomass: 9.53 cents

All of these figures are significantly more expensive than the PPA rates being signed by Nevada Power and other energy companies. However, it should be pointed out that the EIA currently estimated that the LCOE of solar power in 2022 will be 6.32 cents per kWh. So, there is certainly some disagreement as to what the energy industry will look like in a few years’ time. But it’s safe to say that businesses are still extremely optimistic about solar power rates continuing to fall dramatically, which would greatly incentivize increased adoption and manufacturing.

And with California mandating the installation of solar power panels in most new homes, starting in 2020, we anticipate that residential adoption will continue to be strong. This will help to keep the price of solar power systems under control.

In short, the future of solar power is bright, and there’s no better time to take advantage of the savings offered by solar power. To learn whether a residential solar power system is right for you, contact Capital City Solar by calling 916-782-3333, or send us a message using our contact form.