California has, on average, the highest electricity rates in the continental United States. That's made it one of the strongest markets for home solar panels, which can reduce electric bills even after Southern California Edison and the state's other big utilities made big changes to solar policies in 2023.
If you're wondering if solar is worth it in Oxnard, CA, the answer will be unique to you. Here's what you need to know and how to find the right installer to partner with.
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Does Solar Make Sense in Oxnard, CA?
California is regularly one of the top solar states in the country. Whether or not solar makes sense for you at your house depends on the specifics of your space, your electricity consumption, and monthly energy bill. We can cover it in broad strokes here, but a quote for solar at your home will give you a clearer idea of whether it makes sense for you.
Price of electricity
One of the main ways solar panels save you money is by letting you avoid paying for utility power. The higher your electric rate, the more you stand to save.
California’s average electricity rate in 2023 was 29.51 cents per kilowatt-hour, according to the US Energy Information Administration. Southern California Edison’s rate over the last year was 32.33 cents/kWh, according to the EIA. Both were higher than the national average residential electric rate in July 2024: 16 cents/kWh.
Your actual rate might change throughout the year and even throughout the day, if you have a time-of-use rate. That’s part of the reason solar installers look at past bills when designing your system.
Price of solar
The cost of solar varies depending on many factors: the local cost of labor and permitting, the complexity of your roof, whether you’re attaching a battery, and more. The Solar Energy Industries Association estimates that the cost of residential solar in the second quarter of 2024 was $3.24 per watt. That makes for a cost of $19,440 before incentives for a six kilowatt system.
Available sunlight
Oxnard gets a daily average of about 5.5 peak sun hours a day, according to the National Renewable Energy Laboratory. That’s toward the sunnier end of the scale in the United States.
More important than the city- or region-wide average is the amount of sunlight available on your roof. If it’s heavily shaded, solar panels likely won’t be a good fit. Solar installers should do a survey of your roof, either in person or virtually, as part of the design process. You can do an informal one by tracking how sunny your roof is throughout the day.
Outages
Solar panels on their own won’t keep the lights on when the power goes out. They’re designed to shut down with the grid for safety reasons. When you attach a battery, that changes. A battery and its inverter can separate your house from the grid and, depending on its charge and capacity, can keep your house (or at least parts of it) running.
Californians experienced an average of nearly 350 minutes of power outages in 2023, according to the US Energy Information Administration. If power outages pose a threat to you, solar and storage may make sense for reliability’s sake alone.
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Solar Incentives in Oxnard, CA
Solar incentives that bring down the cost or increase the savings of going solar still play a valuable role in most people’s decisions to go solar. There was a shake up in California’s solar incentives in 2023. Here’s where things stand now.
Federal tax credit
The federal residential solar tax credit, formally known as the Residential Clean Energy Credit, can significantly reduce the overall cost of going solar for many people. In the year you install solar, you can claim a tax credit worth 30% of your cost to go solar. The credit can cover taxes you owe or taxes you’ve paid that year, but you need to have a tax liability in order to use the credit. If your tax liability is too small, you can roll any extra over to future years.
Everyone’s tax situation is different, so be sure to consult your tax advisor before counting on claiming the credit.
Credit SEIA
Net metering
When you install solar panels, you probably won’t use all the electricity they generate. Even if you have a battery and some of your excess energy goes to charge it, some electricity will make its way back to the grid.
Often, utilities will compensate you for that electricity, and Southern California Edison is no different. Under SCE’s net billing system, when you need to buy electricity from the grid, you do so at the full retail rate. When you export electricity to the grid, you’ll be credited at different rates throughout the day and year. On average, SCE’s credits you at 7.6 cents/kWh.
SCE and California’s other large investor owned utilities system operate on a net billing system. You may have heard it referred to as net energy metering 3.0, on NEM 3.0, during its approval and implementation in 2023. That’s the popular term for it, even if it’s not technically accurate.
Property tax exemption
California has a state property tax exemption for solar systems. Adding solar panels to your roof typically increases your home’s value. In California, you won’t pay property taxes on that additional value.
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Solar Payback Period in Oxnard
A solar payback period is the time it takes for your solar savings to cover your costs of going solar. Your specific payback period will depend on your energy bill, how much it’s reduced, and how much your solar system costs to install and maintain. Here’s how you can calculate a solar payback period.
( Total solar costs - Incentives ) / Annual savings = Payback period in years
Assume your cost to install solar panels is $17,000. You claim the federal tax credit in the full amount, $5,100. With an average bill saving of $115 each month you’ll cover your cost in years.
($17,000 - $5,100) / $1190 savings per year = 8.62 years
Predicting a solar payback period always has some uncertainty built in because you can’t predict the future and things can change. For example, the average electricity rate for Californians in 2023 was 29.51 cents/kWh. Eight years before in 2015 it was 16.99 cents/kWh an increase of 74%. If electricity continues to trend more expensive, it will shorten your payback periods.
Credit US EIA
Southern California Edison and Rooftop Solar Panels
Unless you take your house off grid — something very few people actually do — you’ll still be connected to your utility throughout and after you have solar panels installed. Your utility’s electricity rate and net metering policy, to start, will have an impact on your savings. It may also limit the size of your installation if you want to take advantage of net metering.
| Utility | Average electric rate (cents/kWh) | Daily basic charge (with TOU-D-PRIME) | Net metering type | Average net billing credit (cents/kWh) | Max system size | Max system offset (for net metering) |
|---|---|---|---|---|---|---|
| Southern California Edison | 32.33 | $.55 | Net billing | 7.6 | None | 150% |
Credit and electricity rates are averages and change in value by time of day and year. Confirm your details on your bill or with your utility.
Gas utilities and home electrification
If you use gas at home to cook or heat water or your house, you have a second utility bill. In some cases, electrifying your home when you go solar can increase your savings since you can use solar to cover more of your energy consumption.
See how much you can save by going solar with Palmetto
Leasing Solar Panels in Oxnard
Third party ownership (TPO) of solar panels allows you to go solar without the upfront cost of purchasing them. Instead, you make a monthly payment for the solar panels (in a lease) or the electricity they generate (in a power purchase agreement) to the company that actually owns the panels. The specifics of each agreement vary, so be sure to read them carefully.
Palmetto’s LightReach Energy Plan comes with 25 years of protection, a 90% production guarantee, and options to buy out your system starting in year five.
Most leases and PPAs come with an escalator, a set percentage your payment will increase each year. When your payments go up less than your utility’s electricity rate, you can save more in future years.
Solar Panel Maintenance in Oxnard
You might wonder, What happens when something goes wrong with your solar panels after they’re installed? The good news is that solar panels are often low maintenance equipment, though things can go wrong.
Palmetto Protect, a monitoring and service plan from Palmetto, offers monitoring, performance insights, and service. Depending on your plan you can also get a performance guarantee and parts and labor coverage.
Rain does a good job of washing solar panels and keeping dirt and dust from building up and hampering their production. During longer dry stretches, you may want to wash them occasionally. Be sure to follow the manufacturer’s recommendations and never use any tools that could damage or scratch your panels.
Finding the Best Solar Company in Oxnard
Because a solar company plays such a prominent role in your solar experience, choosing the right one is crucial. But how do you weed through the crowded field?
Here are a few steps you can take to find a company that’s a good fit for you.
- Read reviews — both positive and negative — to get a balanced understanding of others experience
- Talk to friends, family, and neighbors who have experience going solar and learn about their experience
- Compare warranties, service, and after installation offerings
- Pay attention to what companies clearly answer all your questions and give you time to make decisions on your own terms
Palmetto Reviews
“Very efficient system. We are producing more kw hours than what we are consuming. We are doing this month after month. Love Palmetto.” Ron B., Google Review
“Palmetto Solar installed my solar panels and I have seen a significant energy cost decrease. To add to the review, the personnel I have worked with were amazing. They were informative, responsive, truly concerned about my experience, and answered all my questions throughout the entire process. If you are looking for solar, I highly recommend Palmetto Solar.” Darrell M., Google Review
“I got solar installed through Palmetto and it was fantastic. They made it painless and took care of all the paperwork for me. I'm very happy with the results. I haven't had an electric bill since it was turned on at the beginning of this year.” Russ G., Google Review
Frequently Asked Questions
Does solar make sense in Oxnard, California?
Solar can definitely make sense in Oxnard. While California’s solar incentives have been more friendly in the past, it’s still a place where many homeowners can save by going solar.
Are solar panels worth it in Oxnard?
Thanks to California’s expensive electricity rates, solar can be worth it in Oxnard. While Southern California Edison customers won’t get one-to-one net metering, they can still earn bill credits through net billing. With the right system design, solar panels can pay for themselves through electric bill savings.
Does solar increase your home value in Oxnard?
Solar panels will likely increase your property value. When it comes to calculating your home’s value for property taxes, California excludes the value solar adds, so your taxes won’t go up due to your solar system.
How much does it cost to go solar in Oxnard?
The cost of installing solar varies from state to state and city to city. The Solar Energy Industries Association says the national average at the start of 2024 was $3.25 per watt. The size of your system, the complexity of your roof, whether or not you install a battery, and the local cost of labor and permitting can make the number bigger or smaller.
Does Oxnard have net metering?
Southern California Edison offers net billing, which credits you for the electricity you send to the grid at the avoided cost rate, which is typically lower than the rate you pay your utility.
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Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
