California's Solar Panel Installations Bringing Soft Costs Lower

Ean GoodguyAugust 1, 2018 1153 0

California's Solar Panel Installations Bringing Soft Costs Lower

We love to see a change for the better.  When our kids get sick, we like to see them feel better.  When our car breaks down, we like to see it get better.  When the jukebox starts skipping, we like to see Arthur Fonzarelli show up and elbow bump it back into a state of proper function.  In the solar panel industry, we like to see a change for good as well.  That change for good is typically equated in lower costs for solar panels and installations.  Due to recent economic and government regulatory actions, the solar panel industry might see some great changes for the better. 

Recently there has been some amazing movement toward a total solar future for California.  With the induction of the 2019 Building Energy Code, it is proclaimed that solar power will be installed at the time of construction for all newly built homes.  With this assertive approach to wide-spread solar panel installation, California home buyers could potentially experience a per unit prices drop to rates approaching that of some of the world’s largest utility-scale solar farms. 

Swanson's Law And Solar

There has been a lot of conversation in the sphere of energy economic circle about the future of the market.  The ongoing decline in price is creating a new type of economic/solar industry model.  Known as “Swanson’s Law," since the mid-1970s solar panels have gone down about 20% in price every time then there is a doubling of output. Perhaps more clearly demonstrated, solar panels are at least three times cheaper than they were just a decade ago. There is a lot of movement going on, and it's clear that there is no better time to buy solar panels for the best price than now. 

Soft Costs For Solar

Soft costs add up to a massive difference between California and many other states. In the world of rooftop solar panel installations and pricing, some of these soft costs include permitting, financing, installation labor, cost of customer acquisition, and paying suppliers, one wonders if there is enough money to go around.  Hopefully, some value is left over for the business if they want to stay in the game. Because these soft costs are more significant for smaller installations, the U.S. Department of Energy (DOE) estimates soft costs can be approximately two-thirds of total solar panel installation and purchasing costs.

It's also important to note that soft costs aren’t shrinking as quickly as hardware costs by comparison. So, this action made by California is likely to lower soft costs distinctly, as it is assumed to put downward pressure on almost every one of these soft cost classifications.  New home builders are truly eliminating these soft costs by way of following through with this Californian plan.  So, for new home builders, the future is looking bright for solar, so make sure you contact us before finalizing your plans, we can help you find a great deal on solar pricing. 

If you want to move into the future and join the solar revolution, or if you want to find out what solar panels are right for you, go to and try our price checker tool. You can see how much a system will cost, and how much you can save over the next 20 years.

For more information relating to going solar, don't forget to visit our solar blog section for more handy guides and articles.

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