There is news out today indicating that the state solar rebate for PG&E customers is going to decrease from $1.10 per watt to $0.65/watt. That means if you decide to install a home solar energy system after the decrease takes effect in about a month you will have to pay approximately $2,000 more for your solar system. The reason for the rebate decrease is simple. The rebate is an incentive from the state to reward the early adopters of solar energy. As more renewable energy generating capacity comes online the state has less incentive to pay people to put solar on their roof.
Some would argue that the loss of rebate is offset by the reduction in the cost of the solar panels, and while the prices of panels have come down significantly in the past two years, there is only so far down that they can go because a large component of the cost of a solar system is in the installation and as far as I know labor costs are going up not down. The next drop in the rebate will be even more steep, down to $0.35 and that will occur after another 35 MW of residential solar power comes online or when another 9,000 households go solar.
Therefore, if you are on the fence about whether to go solar, you should really think about talking to one or more of our solar installers who can tell you if installing solar makes sense for you and how much you could save on your electricity bill.