Solar Energy Costs Going Down - Central Coast News KION/KCBA

SALINAS, Calif.-- Solar Energy Costs Going Down. While most people's electric bills are going up, the cost of solar energy in California is going down but that doesn't mean you'll be paying less in your home.

New solar panels were recently put in at the Monterey County Office of Education. It's part of one of the solar projects that is putting California on the fore-front of sustainable energy. As the demand for solar power goes up, so does the supply which makes it cheaper.

Now local solar companies say in the last decade the price of panels are dropping dramatically because they can be bought cheaper from China. However, the cost of installation is still expensive because the labor costs have not changed. As far as state rebates go, they're still available but not as much money will be given back to people who buy them.

Mike Dalrymple of Sundance Solar says it was easier to purchase the panels a few years ago when rebates back were much higher. "California started the whole thing with the rebates and for a few years they were paying up to half of the cost of the system, but the rebates now have dropped," said

Power companies offer their own incentives, and there are tax benefits for going solar. In the end, solar proponents say the money you save on your energy bills every month will eventually even out your bottom line. A recent study conducted by the California Public Utilities Commission recognizes California as the first state in the nation to install more than 1,000 megawatts of solar energy.