Solar power in Palm Desert, California
Being serviced by Southern California Edison (SCE), Palm Desert residents can enrol in their net metering program, which means they can earn great returns from solar.
Another great incentives are the federal tax credit, worth 26% in 2020, before dropping to 22% in 2021.
PACE financing is also available to Palm Desert residents.
Net Metering Broken Down
Palm Desert residents and business owners are eligible for 1 for 1 net metering with SCE's retail power price. All unused energy is sent to the grid and SCE must credit you 1 for 1 for this energy this makes solar payback times as short as 5-6 years on a standard system.
Unfortunately, there has been some changes to the the legislation meaning that to receive net metering with SCE you must switch to time of use billing which results in about a 10% loss of return.
Even with the NEM-2 net metering laws solar is still a must have investment since these new laws only slighty damage net metering returns and with the sunny weather net metering is still far more profitable in southern California than many other places.
The average cost of installing residential solar panels in Palm Desert,
California in 2024 is
$2.72 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Palm Desert, CA
is $13,600.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in California is only 573kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Palm Desert solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our California solar savings calculator can do this because it contains a database of the electric rates charged by Anza Electric Coop Inc, Banning City of, City of Riverside, Imperial Irrigation District, Southern California Edison Co, City of Corona DWP, Moreno Valley City of
How much can solar panels save you in Palm Desert
Palm Desert PACE Program
The city of Palm Desert is also very unique since it offers a PACE program were the customer pays slowly over about a 20 year period through their property taxes for their system.
However, we highly recommended that consumers avoid PACE or a solar loan program, since solar companies will usually charge much more. Instead, it is best to take out a HELOC (Home Equity Line of Credit) secured against your home with a low interest rate of 4%-6%, so you can approach the solar company as a cash buyer and receive a much better price.
Even if you are not convinced about solar we recommend that at the very least you use the solar panel calculator for Palm Desert to find out:
- How many solar panels you need to cover your power bill;
- How suitable your house is for solar;
- What incentives your house may be eligible for;
- The cost of solar panel installation in Palm Desert and whether you are eligible for zero down solar deals; and
- Your likely payback period and return on investment from installing solar
Find out what rebates and incentives you can get in Palm Desert
What does the cost of a real solar system look like?
Facts about installing a 8.06kW solar system in Palm Desert, CA
This system would offset 100% of your energy usage if your typical monthly bill is $271, however your situation may vary so try our Palm Desert solar calculator to get a result tailored to you.
$15,567
Net cost of system
4 Years 5 Months
Average payback time
12,904 kWh
Annual power production
5¢/kWh
Levelized cost of solar energy
45¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 8.06kW system
Life-time savings on this system over the next 25 years
$122,298
(Prices shown after repayments of capital)
200
Solar companies in Palm Desert, CA that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Palm Desert
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
Find out what system size you need for your home
Going solar in California
Check out all of the ways energy providers of California can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Property Tax Exclusion for Solar Energy Systems | State | Property Tax Incentive |
| Sonoma County - Energy Independence Program | Local | PACE Financing |
| NEM 2.0 | State | Net Metering |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
