In an attempt to save money, reduce electricity bills, and reduce fossil fuel use, solar panels have become increasingly popular worldwide, and in San Jose, it is no different. Being one of the largest cities in California (both in size and population), the energy demand in this city is high. As such, people turn to solar energy to save money and meet their energy needs.
How Much Does It Cost To Install A Solar Panel?
One advantage of investing in solar energy is that it saves costs and, in the long run, offers returns on investment, making it a win-win. In San Jose, the cost of installing a solar system on your house varies. There are several options for installing solar panels on your property.
You could choose to do it yourself, as various solar panels are invented to make it easy for DIYers to do it themselves. Also, there are several guidelines on the internet on how to install a solar panel. Installing the panels yourself would come at very little or no cost.
You could choose to hire a solar company, which will cost you some money. As of May 2022, installing a solar panel in the city costs about $2.90/watt. The cost of installing a whole system is usually determined by the size of the house and the electrical needs of the house, amongst other factors. Usually, it costs about $10,900- $16,900 to install a solar system in smaller homes, while for bigger homes, the cost ranges from $21,170 – $58,020. The cost of solar panels in San Jose also varies depending on their sizes, i.e., kilowatt. Below is a table showing the average price of solar systems according to their sizes in San Jose, according to Energy Sage.
Average Cost Of Solar Panel According To The System Size
| Solar System Size | Cost Of System | Cost after ITC |
| 3KW | $8,700 | $6,090 |
| 4KW | $11,000 | $7,700 |
| 5KW | $14,500 | $10,150 |
| 6KW | $17,400 | $12,180 |
| 7KW | $20,300 | $14,210 |
| 8KW | $23,200 | $16,240 |
| 9KW | $26,100 | $18,270 |
| 10KW | $29,000 | $20,300 |
Usually, the payback period for solar systems in San Jose ranges from 4.7 to 5.9 years, while the average amount saved over 20 years is $53,749.
Incentives, Tax Credits & Rebates For San Jose Solar Panels
Undoubtedly, investing in solar panels is an important financial decision as it costs a lot. However, it is a good decision compared to how much can be saved from electricity bills.
There are incentives set up in San Jose and California to promote the switch from fossil fuels to solar panels and renewable energy. Here are five incentives for locals who plan to switch to renewable energy in San Jose.
Investment Tax Credit (ITC)
The most significant incentive to invest in solar energy is the 30% federal tax credit. This incentive allows you to deduct 30% of the cost of installing a system from your federal tax. The ITC was established in 2005. Despite challenges, its progress and impact have sustained it.
California Public Utilities Commission
These incentives come in two forms: ‘No Cost Solar For Low-Income Residents’ and a solar incentive for affordable multifamily housing. Property owners would have to apply on the waitlist to get funding for a solar energy system to get these incentives.
Property Assessed Clean Energy (PACE)
This is a loan option for property owners to finance their solar energy investments through property taxes. In this program, local or state governments work with financers to pay the bill of the solar system for the property owners upfront, and the owners would, in turn, pay an increased property tax bill for an average of 20 years as payback.
Property Assessed Clean Energy is available for Residential Properties (Residential PACE or R-PACE) and Commercial properties (Commercial PACE or C-PACE).
Single-family Affordable Solar Homes Program (SASH)
This program makes available incentives for low-income single-family owners to pay the cost of installing solar.
Solar Power Purchase Agreement (PPA)
With this incentive program, property owners only have to pay the cost of electricity installed panels generated every month but with $0 upfront to have the panels installed.
Top 7 Local Solar Companies In San Jose
Switching to solar energy might not only seem costly but also challenging. However, partner with reliable companies that have proven to be efficient over the years if you want to. Here are seven solar companies in San Jose that have raised the bar in satisfying customers.
1. Clean Solar
Since its establishment, Clean Solar has successfully provided effective solar solutions for energy needs. Its one-of-a-kind product and services are considered ideal and efficient renewable energy resources.
As one of the fastest-growing solar installation companies in San Jose, it delivers customized solar systems to fit your house’s needs. Each product comes with a 15-year guarantee and a 25-year warranty.
- Address: 1445 Koll Cir, San Jose, CA 95112, United States
- Phone Number: 888-551-7652
2. Highlight Solar
Highlight Solar is one of the leading companies in the city that specializes in energy storage and solar installation. Having won the Solar Power World Top 500 solar contractors award in the USA, the company is an ideal partner to choose for investment in clean, renewable energy. They offer a free quote on installation cost, site inspection, and financial analysis.
- Address: 1624 Remuda Ln, San Jose, CA 95112, United States
- Phone Number: 866-926-9997
3. Solar Technologies
Established in 1998 and having over 20 years of experience, Solar Technologies has installed over 70,000 Solar panel systems for business owners and homeowners. With customer satisfaction rated 90%, it is no wonder SunPower handpicked the company as their Bay Master Dealer. Part of their services includes commercial and resident solar panels, energy storage systems, etc.
- Address: 23 Las Colinas Ln Suite 106, San Jose, CA 95119, United States
- Phone Number: 831-200-8763
4. Sun Power
Sun Power has its headquarters in San Jose, and they sell and install solar power products. It was established in 1985 by Richard Swanson, an engineer and alumni of Stanford. They also mount hardware and monitor software.
- Address: 51 Rio Robles, San Jose, CA 95134, United States
- Phone Number: 408-240-5500
5. NRG Clean Power
NRG Clean Power is a leading solar company with over 30 years of experience installing solar panels and batteries. As a company, they are devoted to changing the mode of electricity production, consumption, and storage. They have top-notch customer service and have gotten the Prestigious Diamond Certification four times.
- Address: 75 E Santa Clara St, San Jose, CA 95113, United States
- Phone Number: 800-698-6627
6. Simmitri Solar
Founded in 1995, Simmitri Solar is a customer-centered company that designs and installs solar systems. Currently run by Jonathan Garcia, it is a Silicon Valley company that provides battery bank services and inverter services.
- Address: 6203 San Ignacio Ave Suite 110, San Jose, CA 95119, United States
- Phone Number: 408-560-4849
7. Sun Run
Sun Run offers one-on-one consultations to guide customers through all the necessary details they need to know about using solar energy. They also deliver custom-designed solar systems for houses, daily monitoring, and free maintenance.
- Address: 575 Dado St, San Jose, CA 95131, United States
- Phone Number: 408-620-3438
5 Things To Look Out For When Installing Solar Panels In San Jose
When installing solar panels, there are things to consider to ensure efficiency and optimum solar system use. They include
Weather
When installing a solar panel in any area, it is necessary to consider the weather. Since solar panels generate electricity from the sun, installing them in an area with more sunshine is better. Snow, rain, clouds, and fog hinder solar panels from working effectively. Having a battery bank is a good idea if the weather is not so favorable as it would help save excess power on sunny days.
Peak Hours
Peak Hours are the hours of the day when the sun shines the most. During these hours, the solar panel gets enough energy from the sun to generate heat. How long these peak hours last can also affect the electricity generation of the panels. In most places, while solar panels can trap heat in the morning and late afternoon, the peak hours are usually during noon.
Solar Panel Direction and Angle
If the solar panel is facing a direction or is at an angle where it cannot absorb energy from the sun, generating electricity could be a hassle. Usually, in the USA, solar panels are most effective when facing south due to the optimal azimuth angle in that direction.
Shading Elements
Another factor to consider when installing a solar panel is the presence of shading elements. Shading elements could be anything, such as chimneys that block sunlight from getting to the solar panel. If no sunlight gets to the panels, they won’t absorb heat to generate the needed energy.
Pollution
Air pollutants, such as dust and other particulates, can affect the efficiency of solar panels. If the air pollutants are so intense, they could quickly stop the solar panels from getting sunlight.
Summary
Because San Jose is located in California, where the sun mostly shines, solar energy as a source of generating electricity is already being adopted by a high percentage of its over 1 million population. With an average of 257 sunny days and the advantages that solar panels come with, it is safe to say that solar energy is the next big turn for the city.