![]() Keep in mind that latitude has a great deal to do with solar collection potential, which also affects your return on investment. This will enable you to use the average prices for solar quoted below to estimate your potential installation costs more accurately. If the amount calculated based upon roof size is more than you need, then you can simply adjust the kW down in their calculator until the annual kWh produced on their month-to-month summary page equals the annual kWh usage you obtained from your utility bill. The calculator estimates the size of the system your roof can accommodate on the southern-facing portions where the panels will see the most direct sunlight. You’re then able to click on their Roof Size Calculator to assess your roof position automatically using satellite imagery. The National Renewable Energy Lab (NREL) has a free, easy-to-use calculator into which you can place your address. Using PVWatts to Calculate Your Solar Requirement Learn More About Kilowatts & Solar Panels ![]() We’ll discuss this in greater depth below, but know that most CA residents will still benefit from solar conversion even if their energy needs are a bit low. However, the average energy rate should also be considered. ![]() Homeowners who use much less than the average might find that the return on investment is too low to make going solar a worthwhile endeavor. In California, the typical consumption is just 572 kWh. You can determine your average energy usage by looking at your past electric bills. Solar panels are generally considered valuable in homes that use more than 500 kilowatt-hours every month. You may have to look at a December bill to see the summary for the year. Many electric bills will show total consumption for the year to date. ![]() Most importantly, you’ll want to consider how much electricity your home uses in an average month, as your solar panels will slowly pay for themselves by reducing your electricity expenses. However, as we’ll discuss below, California’s recent changes to its net metering policy more or less demands batteries to offset your consumption, so your total installation cost will be higher than many areas where batteries are not yet necessary. Given the very high price of power, most Californians will find solar panels well worth the investment. Although Californians use far less energy than most residents throughout the country, they pay an average of 29.5 cents per kilowatt-hour, which is significantly more expensive than the average of 16.79 cents in the US. Solar panels are more valuable in areas where electricity rates or energy usage is high. This assumes the typical price of $3.33 per watt, which is right in line with the national average, and the average system size needed to offset electric consumption, which is 6 kW, well below the national average. The average price of solar panels in California is around $19,980 before the federal tax credit or $13,986 after the credit is taken into consideration.
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