Saturday, August 16, 2008

Los Angeles ReStarts Solar Incentives for Homeowners

With massive energy consumption rates, California is in a perpetual energy supply and demand struggle. The state is looking to solar as an alternative and Los Angeles just made it more attractive.

Los Angeles Re-Starts Solar Incentives for Homeowners

As the rolling blackouts each summer can attest, California is a state with major energy problems. The problem is so bad that both candidates for governor are now touting their energy plans with the Governator even meeting with foreign officials on global warming issues! While politics always carry an air of promises with little action, the powers that be in the state have actually taken some very strong steps.

This past year, California finally came to grips with its massive energy crisis. Laws and regulations where instituted in an effort to motivate Californians to turn to alternative energy sources, particularly solar power. More importantly, these programs had guts. The state committed to providing over three billion dollars in financial incentives to motivate individuals to switch to solar. Part and parcel to this was an effort to encourage municipalities to also offer financial incentives. Los Angeles has just jumped on the bandwagon.

As of August 14, 2006, the Los Angeles Water and Power Department will be providing incentives to businesses and residences that go solar. Specifically, we are talking about installing new solar panels for the production of energy. The financial incentive comes in a rebate of three to four dollars per system watt and, obviously, the system must be connected to the energy grid. For those that get utility bills in California, it is obvious such savings are massive.

The primary problem with solar panels and power has always been the cost. Strictly speaking, the cost was far more than just sticking with power delivered from the local utility. In California at least, this is no longer the issue. A homeowner in Los Angeles can now install a solar panel and get significant financial incentives that wipe out the cost difference. First, the new system immediately generates thousands of dollars in tax credits from the federal government. Second, the state offers incentives per watt and discounts on the new panel system. Third, the city now gives a discount. Fourth, California is a net metering state, which means a homeowner can sell back the unused power from the solar panels to the utility company to further reduce their cost. All and all, many a homeowner that switches to solar panels can darn near expect to make a profit form it!

Rick Chapo is with Solar Companies - a directory of solar energy companies.

No comments: