....Now, with PG&E filing bankruptcy, I am concerned about the future of the net metering agreements. I'm not sure that PG&E is in a position even to sign one now.
I live in Northern CA, SF Bay Area/East Bay hills. The long side of our roof faces south, uninterrupted (no shade, no taller houses allowed). We put 14 panels on our roof in Fall 2015; system went operational Nov 2015.
There was a federal tax rebate of $3K, but no state rebate. Panel cost is about $300/panel, installation brings that up to about $925 (2015 dollars). If you do solar, DO NOT skimp on install costs, per a contractor friend who did his own solar. There are two kinds of mounts and one (sturdier, slightly taller) is much better than the other.
We get high winds in the hills, you really don't want a panel yanked off the roof! And you definitely don't want leaks, either.
According to everyone I talked to, best time to do solar is when you are putting a new roof on. Second best time is within 5-yrs of new roof install.
Every state has a different approach to Net Zero Metering. Be sure you understand what the current and near-future political situation is in your state. Without NZM there is probably very little payback value in solar.
Our utility is PG&E. The total # of NZM systems was divided up between CA's 3 utilities. PG&E was more aggressive in selling/permitting solar, so they reached their Net Metering limit in 2016.
The new system is called NEM 2.0 and applies to all CA solar customers who bought their systems after the original cap per utility was exceeded. Details are here for those CA residents:
https://news.energysage.com/net-metering-2-0-in-california-everything-you-need-to-know/.
It's important you understand the difference between systems under cap #1 and newer systems under NEM 2. NEM 2 owners are charged "time of use" credit and rates for electricity. Thus, in CA, putting panels on the west side to catch afternoon sun, is actually very useful.
(Excerpted) "...
Time-of-use (TOU) rates:
TOU rates are designed to align your electricity costs with demand across the electric grid. Electricity is most expensive at times of high demand, like late afternoon and early evening, which means that your utility will charge you more per kWh during those “peak hours.” It also means that
net metering credits will be worth more for electricity you send back to the grid during peak hours. "
Now,
I believe* that the downside for NEM2 owners is you are credited with wholesale rates for the KW you send to the utility.
* I'm not 100% sure on this, since I'm under cap#1 I wasn't paying really close attention to the NEM2 changes.
Under cap #1, our system is credited the
retail charge per KW which is substantially greater than the wholesale cost. Last figures I heard were 26 cents retail per KW (there have been two increases since and more to come due to the wildfire liabilities) versus 3 cents wholesale per KW.
I may be wrong on these figures so I apologize in advance if so! But all the research I did in 2015, when the CA utilities were already complaining about how much systems under cap #1 was costing them, indicated the basic changes meant that if you could get a system installed under the cap #1,
you were financially much better off in terms of break-even costs.
So that's what we did. PG&E does a "true-up" annually. Every month my bill shows a $10 charge for connecting to the grid (which is reasonable since we have no batteries; without the grid we have no electricity). The utility tallies up how much energy the system has generated that month and keeps a running total.
In the winter we run a deficit - obviously, when it rains we're a negative user - and in the summer we run a nice surplus. Note the Net Metering under cap #1 is transferable to a new homeowner, should we sell the house before 2035 when cap #1 is terminated and we are forced over to NEM2 rates. Thus, it is considered a valuable selling point.
Before we installed solar, our electricity cost $125+/mo. We use natural gas for furnace, WH, and range.
Year 1 (Nov 2016): total electric bill at true-up $120
Year 2 (Nov 2017): total electric bill $132
Year 3 (Nov 2018): total electric bill $49
Looks like we'll break-even in 8-9 yrs, but that's based on current rates. PG&E's bankruptcy may throw everything into the wind, so who knows what will happen? We can only wait and see.
But for now, it worked for us. Again, note that this is ONLY for Northern CA solar systems, altho SoCA owners can use their bills to figure out their own #s.