Cost of Solar Panels in California (2026)

How much do solar panels cost in California?

A typical residential solar panel system in California costs between $12,224 and $24,449 before incentives. On the high end, Matthias in Westlake Village told us he spent $52,000 going solar.

System size is one of the biggest factors affecting your total solar cost. The average California household needs a 7.2 kW system to offset most of its energy use. Depending on your household energy usage, you may need a smaller or larger system.

Average solar panel costs by system size in California

Average cost per watt in California

Solar panels typically cost between $2.50 and $5 per watt in California. To compare quotes, divide each system’s total price by its wattage. Homeowners with higher-than-average electricity usage may need a larger system, which increases the total installation cost.

What solar panels cost based on your California electricity bill

Your electricity usage helps determine how many solar panels you need and how much your system will cost. Installers generally use your household’s annual kilowatt-hour consumption rather than the dollar amount of your bills because California electricity rates vary by utility, time of day and rate plan.

For context, a $200 monthly bill might represent around 600 kWh of electricity at California’s average residential rate, but your actual usage could be higher or lower. An installer will review about 12 months of utility bills and consider your location, roof orientation and shading before recommending a system size.

At $3 per watt, each kilowatt of solar capacity costs about $3,000 before incentives. For example, a 6 kW system would cost approximately $18,000.

Did you know?

Some lower-income households are eligible for no-cost solar installations.

» EXPLORE: Solar incentives, rebates and tax credits in California

Are solar panels still worth it in California?

Solar panels are often worth it for California homeowners who want to lower their electricity costs and rely less on the grid. On average, homeowners with solar panels avoid $136,109 in utility costs over 25 years.

Potential savings are higher than in many states because California has some of the highest electricity prices in the country. Solar is generally most cost-effective when your monthly loan or lease payment is lower than what you previously paid for electricity. In some cases, a properly sized system can significantly reduce your utility bills.

How long it takes solar panels to pay for themselves in California

Solar panels typically pay for themselves in 7.32 years in California. Paying cash gets you to the break-even point fastest. Financing with a loan extends the payback period.

Because NEM 3.0 offers lower credits for the excess electricity you send to the grid, adding battery storage can improve your savings by letting you use more of your own solar power instead of selling it back at reduced rates.

What California homeowners say about going solar

California homeowners often say solar helps them manage high electricity bills, although savings vary by system cost, financing and energy usage.

Nancy in Chico, who is retired and lives on Social Security, said her $159 monthly Sunrun payment was much more manageable than summer PG&E bills of about $400.

Others, like David in Palm Desert and Tammy in Rancho Cucamonga, said rising energy prices and long-term savings made solar worthwhile.

However, savings don’t always meet expectations. Jay in Woodland Hills told us, “Because of the overpriced system, I am paying more for the loan payment than I save from the utility.”

Pros and cons of going solar in California

The main advantages of solar in California are lower electricity bills, protection from rising utility rates and greater energy independence. The biggest disadvantage is the upfront or long-term financing cost.

» MORE: Pros and cons of solar energy

Solar cost factors in California

Equipment is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Permits and other soft costs generally make up the rest of the total price tag.

Solar panel efficiency

Monocrystalline panels are generally considered the “best bang for your buck,” according to Robert Flores, a solar expert at the University of California, Irvine. Cheaper solar panels are typically polycrystalline — the difference comes down to efficiency and materials.

The more efficient your panels are, the more electricity they produce and the less space they take up on your roof.

Solar battery costs in California

The cost of a solar storage battery depends on factors like storage capacity, lifespan, brand and installation complexity. Most homeowners pay between $7,000 and $18,000, though some systems can exceed $30,000.

In California, consumer-reported quotes for adding a home battery typically range from about $10,000 to $19,000 per battery. Some installers also charge additional upgrade or equipment replacement fees of $10,000 to $15,000. Reviewers occasionally mention a $4,000 state rebate, though eligibility and availability vary.

Hassan in Laguna Hills said he spent about $10,000 to add battery storage to his system, while another reviewer in Anaheim reported a quote of $19,000.

Carlos in Los Angeles shared a more frustrating experience: “The battery alone cost about $10,000, plus additional equipment and another $10,000 to $15,000 in fees for what they called an upgrade.”

Did you know?

Solar batteries are increasingly valuable under California’s net billing system. In 2026 and beyond, storing excess energy for later use can provide greater savings than sending it back to the grid at lower rates.

» LEARN: How solar energy is stored in a battery

Other equipment

Systems contain solar panels, mounting equipment, wiring and other equipment, such as monitoring systems and inverters.

Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.

System size

Actual system size may vary based on sunlight, roof angle and panel efficiency.

To estimate your system size, check how many kilowatt-hours (kWh) your home used over the past year on your electricity bill. Then divide that number by 1,200.

This gives you a rough estimate of the system size (in kilowatts) needed to cover your energy use. For example, a home that used 8,640 kWh last year would need about a 7.2 kW system — right around the California average — while a smaller household that used 6,000 kWh would need about a 5 kW system.

Pro tip

Upgrade any old appliances before going solar. Replacing an old refrigerator with a more eco-friendly one reduces your electric load. If you use less electricity, you need fewer solar panels to power your home, making your system overall cheaper.

» RELATED: How many solar panels do you need?

Local permits

Permitting fees vary by city and county. In most cases, your solar installer will handle the permitting and interconnection process, though you may need to review and sign required documents.

California law also requires municipalities to offer an expedited approval process for residential solar systems under 10 kW.

Ongoing costs

Solar panels require minimal maintenance, but there are still ongoing costs to consider. Occasional repairs, inverter replacements and periodic cleaning can add to the total lifetime cost of your system.

How can I pay for solar panels in California?

California homeowners can pay for solar panels with cash, a solar loan, a lease or a power purchase agreement. Property Assessed Clean Energy financing may also be available in some areas. Each option has different upfront costs, long-term expenses, tax benefits and ownership responsibilities.

Solar loans

Like most loans, solar loans include interest. Rates are often relatively low, but the total cost can increase over time. For example, David in Ahwahnee told us, “With financing it was $18,000. But if I paid cash, it was $15,000, and they gave me a $1,000 debit card. It only cost me $14,000.”

Solar leases and PPAs

Leasing solar panels allows you to install a system with little or no upfront cost, but you won’t qualify for the same tax incentives as system owners.

A solar power purchase agreement (PPA) is similar. A third-party provider installs and maintains the system on your property, and you pay for the electricity it generates on a per-kilowatt-hour basis. The rate is typically fixed and often lower than your utility’s standard rate.

PACE financing

In California, PACE financing allows property owners to pay for solar panels through their property tax bill. The loan is tied to the property rather than the individual borrower.

One major drawback is that missed payments can lead to serious consequences, including the risk of foreclosure. PACE financing can also make it more difficult to sell your home or refinance your mortgage.

» SOLAR PANELS: Lease vs. buy

Solar incentives, tax credits and rebates in California

The 30% federal Residential Clean Energy Credit is no longer available for systems placed in service after Dec. 31, 2025, but several California and local incentives remain available, including:

• Local rebates: Alameda Municipal Power offers a $500 income-qualified solar rebate, while Rancho Mirage Energy Authority offers $500 to $1,500 for batteries.
• Battery programs: SMUD offers up to $10,000 for eligible customers who enroll a battery in its management program, and San Diego Community Power offers $250 to $500 per kilowatt-hour.
• SGIP: Income-qualified households may receive up to $1,100 per kilowatt-hour for battery storage and $3,100 per kilowatt for solar paired with storage.
• Property tax exclusion: Eligible systems installed before Jan. 1, 2027, generally won’t increase a home’s assessed value.
• DAC-SASH: Qualifying low-income homeowners in disadvantaged communities may receive no-cost rooftop solar.

Funding and eligibility requirements vary, so check current program terms before applying.

What your cost might look like after incentives

Incentives can meaningfully cut your real cost. For example, a Sacramento homeowner installing a 7.2 kW system plus a $10,000 battery could offset most of the battery's price through SMUD's up-to-$10,000 battery enrollment incentive — turning a roughly $27,000 solar-plus-storage project into one closer to $17,000. Treat figures like these as estimates: actual savings depend on your utility, your equipment and your eligibility.

What to know about net billing (NEM 3.0)

Net metering lets homeowners with solar panels sell any excess electricity they generate to their local power grid. In California, most new solar customers are enrolled in a net billing system called NEM 3.0. This lets homeowners earn credits for excess electricity they send to the grid, but at a lower “avoided cost” rate that varies based on time of use.

Before NEM 3.0 took effect in 2023, homeowners received credits closer to the full retail electricity rate. Under net billing, export credits are significantly lower — in some cases by around 75%. These rules apply to customers of investor-owned utilities like PG&E, Southern California Edison and SDG&E.

Battery costs and NEM 3.0 economics in California

“From analyzing solar installations, I’ve seen that time-of-use optimization is becoming critical,” said Andrew Lokenauth, a finance expert with experience in the solar industry. “My clients who’ve added battery storage are seeing better returns, sometimes cutting payback time by 30%. Storage isn’t cheap, but the math often works out better than solar alone.”

Flores highlighted the challenges of California’s high daytime solar production: “In the middle of the day, there’s a lot of solar on the grid, so utilities can buy electricity for around 3 cents per kWh,” he said. “But they’re required to buy excess solar from customers, often at 10 to 20 cents per kWh.”

Compare solar installation companies in California

» MORE: Top solar companies in California

FAQ

Bottom line

The average solar installation in California costs about $17,208, or roughly $2.44 per watt for a typical 7.2 kW system before incentives, though the final price varies based on system size, available incentives, equipment costs and whether you add battery storage, which can cost an additional $7,000 to $18,000 or more.

California’s climate makes it a great location for going solar. The main drawback is the high cost of purchasing and installing the panels and equipment. Many residents we’ve talked to say the long-term savings outweigh the upfront expense.

Solar panel costs: California vs. nearby states