See how much it will cost to install solar panels for your home in California
Solar power in California
Last fact-checked on April 14, 2023, by Catherine Lane
California is one of the best places in the nation to install solar panels. A combination of high average sun exposure, expensive utility rates, the solar tax credit, and the state's net metering law means homeowners can get an excellent return by installing solar panels.
But, California's net metering rules have changed, causing solar panels to save less money than they have in the past. Don't worry, Californians can still see an excellent return on investment under the new rules, and battery storage is now a more economical choice.
Compare solar quotes from the top solar companies in California
California solar power facts
$2.78 watt
Average cost: 5kW solar power system
?5 Years 1 Month
Average payback time
$74,673
Average lifetime savings
?5¢ kWh
Levelized cost of solar energy
42¢ kWh
If you don't get solar
?8,621 kWh
Annual power production
Cash flow graph based on cash purchase of a 6.06kW system
This 6.06kW system would offset 100% of your energy usage if your typical monthly bill in California is $171, however, your situation may vary so try our solar calculator to get a result tailored to you.
39
Solar companies in California that provide pricing through the Solar-Estimate marketplace.
How much can solar panels save you in California
Average total cost of solar panel installation in California
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $6,069 | $6,555 |
| 4kw | $7,924 | $8,558 |
| 5kw | $9,730 | $10,508 |
| 6kw | $11,424 | $12,338 |
| 7kw | $13,083 | $14,130 |
| 8kw | $14,616 | $15,785 |
| 9kw | $16,128 | $17,418 |
| 10kw | $17,500 | $18,900 |
How much do solar panels cost in California?
$2.78 per watt
Cash purchased solar system
Before 26% solar tax credit
$3.11 per watt
Financed solar system
Before 26% solar tax credit
$17.3¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in California?
The biggest advantages in California for installing solar panels are the current net metering program and the 30% federal tax credit. There are also a number of incentive and financing programs for low-income households so everyone gets a chance to benefit from solar!
The disadvantages of going solar in California are pretty slim. However, with the recent net metering policy change for customers of PG&E, SCE, and SDG&E mean homeowners that install new solar systems will save less than before.
Don’t miss out on good savings! If you’re a California homeowner, go solar ASAP!
Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.
Best solar companies in California
Find local city information
Find local information for cities in California
Anaheim
Antioch
Apple Valley
Bakersfield
Brentwood
Canyon Country
Carlsbad
Cathedral City
Cerritos
Chatsworth
Chino
Chula Vista
Clovis
Concord
Corona
Covina
Discovery Bay
Dublin
El Cajon
El Dorado Hills
Encino
Escondido
Fairfield
Fallbrook
Fontana
Fremont
Fresno
Fullerton
Garden Grove
Glendale
Glendora
Granada Hills
Hesperia
Huntington Beach
Irvine
La Mesa
Lake Elsinore
Lancaster
Lincoln
Livermore
Long Beach
Los Angeles
Manteca
Menifee
Mira Loma
Mission Viejo
Modesto
Monrovia
Morgan Hill
Murrieta
Northridge
Oakley
Oceanside
Ontario
Orange
Palm Desert
Palm Springs
Palmdale
Pasadena
Placerville
Porter Ranch
Poway
Rancho Cucamonga
Rancho Palos Verdes
Compare solar quotes from the top solar companies in California
How much electricity will solar panels produce in California
Solar panels produce different amounts of energy in different locations.
Around the Sacramento area solar panels installed on a south-facing 29-degree pitch roof will typically produce:
1,550kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits, and other solar incentives are available in California?
What solar incentives and tax credits are available in California?
The two main incentives to install solar in California are the 30% federal solar tax credit and the state's net metering law.
Many upfront utility-based incentives that were established under the California Solar Initiative are no longer available for residential customers.
Despite limited utility incentives, the case for investing in solar has never been stronger due to reductions in installation prices and higher-than-ever electricity rates!
Net metering in California (Net Billing)
Net Billing, or NEM 3.0, is the newest set of rules for how investor-owned utilities bill solar customers. Despite being a historically solar-friendly state, California's new rules lower solar savings for homeowners. Under the new program, solar homeowners must use updated Time of Use rates that charge very high rates during peak hours and much lower rates during off-peak hours.
Not only that but excess solar energy produced will be credited at a rate of about $0.05 per kWh. This is much lower than California's average electric rate of $0.30 per kWh.
But, even with these changes, installing solar panels is still a solid investment. The payback period pencils out to about nine years, and the changes make it so systems paired with batteries also pay for themselves in nine years.
Property Assessed Clean Energy (PACE) Loan Program
California has taken advantage of PACE loan programs to meet its emission targets. These loans are paid back through an increase in your property taxes and are attached to the property, not the property owner. So, if you get a PACE loan and decide to move, the loan stays with the property, and the next property owner will continue to pay off the loan.
California is home to CaliforniaFIRST, the largest PACE program in the U.S. PACE loans are also available through the HERO program.
Keep in mind PACE loans are technically tax liens, and you could potentially lose your home if you don't properly keep up with payments. It's important that you understand every aspect of the contract before you sign it.
Property tax exemption
California homeowners can now save on their property taxes when installing residential solar systems. Typically, having a solar system on your property would increase your property taxes. However, The Property Tax Exclusion for Solar Energy Systems exempts 100% of the assessed value of a solar system from residential property taxes. This exemption is set to expire by the end of 2026.
What is the payback period for installing solar panels in California?
The payback period for installing solar panels in California is usually about 9 years. The actual time it will take for your solar panels to pay for themselves depends on the size of the system, the brand of solar panels you buy, the amount you were previously paying for power, and whether you lease or buy the system.
This represents an excellent low-risk investment.
California Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in California, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in California using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in California
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in California or Sacramento ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this California solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in California
Check out all of the ways energy providers of California can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Property Tax Exclusion for Solar Energy Systems | State | Property Tax Incentive |
| Net Billing (NEM 3.0) | State | Net Metering |
| Self-Generation Incentive Program | State | Battery Rebate |
| City of San Francisco - Low-Income Solar Inverter Replacement Program | City | Low-Income Program |
| LADWP - Net Metering | Utility | Net Metering |
| Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program | Residential | Low-income solar program |
| Silicon Valley Power - Low Income Solar Grant Program | Utility | Rebate Program |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
