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 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. Most installers price systems based on wattage, with typical costs ranging from $2.50 to $5 per watt.

Average solar panel costs by system size in California

What solar panels cost based on your California electricity bill

Your electricity bill shows how much energy your home uses each month. Installers use this information to estimate how many solar panels you need. For example:

A home with a $200 monthly bill might use about 800 to 900 kWh per month.

That typically requires an 8 to 9 kW solar system.

At around $3 per watt, that system would cost roughly $24,000 to $27,000 before incentives.

Are solar panels still worth it in California?

Solar panels are often worth it in California for homeowners looking to lower utility bills, reduce their environmental impact and gain more energy independence. On average, homeowners with solar panels avoid $136,109 in utility costs over 25 years.

Over 25 years, homeowners with solar panels can typically avoid $20,000 to $90,000 in energy costs.

We recommend using NREL’s PVWatts Calculator to estimate how much electricity a solar system can produce at your home each year. Project Sunroof is another free tool that uses Google Earth imagery to estimate solar savings. Both can help you verify claims made by solar company sales representatives.

What California homeowners say about going solar

David in Palm Desert explained his decision this way: “Energy prices continue to rise, and we live in an area where the sun shines most of the year. Locking in a fixed electricity cost seemed like a smart move. We also believe we’re contributing to a cleaner environment by installing solar panels.”

Tammy in Rancho Cucamonga shared a similar experience: “Our only regret was that we weren’t able to afford it sooner.”

Solar panel pros and cons

The biggest drawback of solar is the cost. In some cases, homeowners end up paying more than they save, especially if the system is overpriced or undersized. 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.”

In the best-case scenario, solar can significantly reduce (or even eliminate) your electricity bill. Jeffrey in Pasadena experienced this outcome. If you finance your system, it’s typically worth it when your monthly loan payment is lower than your previous electricity bill.

» EXPLORE: Where solar savings go the furthest

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 essential for off-grid systems and can improve energy independence for grid-connected homes. In California, they’re also increasingly valuable under net billing, since storing excess energy for later use can provide greater savings than sending it back to the grid at lower rates.

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

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, if your home used 30,000 kWh last year, you would need about a 25 kW system. Keep in mind that actual system size may vary based on sunlight, roof angle and panel efficiency.

Pro tip

Flores said it’s smart to upgrade any old appliances before going solar. For example, 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?

Position of your roof

Because California is in the Northern Hemisphere, south-facing roofs typically produce the most solar energy. “If you have that, great,” Flores said. “The worst place would be to install on north-facing roofs, especially if those roofs have a high pitch.”

For example, if your only option is a north-facing roof with a 30-degree pitch, your installation costs could increase by 30% to 40%. Energy production will also be lower, increasing the cost per kilowatt-hour of electricity generated, according to Flores.

Condition of your roof

Solar panels typically last 25 to 30 years, so your roof should be in good condition before installation. Otherwise, you may need to remove and reinstall the panels to complete roof repairs — an added cost many homeowners can avoid. If your roof is nearing the end of its lifespan, consider replacing your roof before going solar.

Where you live in California

System costs are relatively consistent statewide. Between Northern California and Southern California, the main difference comes down to how quickly you can break even and how much you can save over time.

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?

Installing solar panels costs roughly as much as buying a new car. You can pay cash upfront, but a lot of people finance. You can also enter a power purchase agreement (PPA) in California. Each option has pros and cons, and your choice affects your overall cost to go solar.

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.

If approved, the PACE provider pays the installer, and you repay the loan through an added property tax assessment.

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 federal solar investment tax credit (ITC) has expired, but you might qualify for several solar incentives in California, including local rebates.

Solar rebates in California

Many local power companies throughout California have solar rebates available:

• Alameda Municipal Power offers a $500 rebate for customers who install solar and have a household income under $106,000.
• Rancho Mirage Energy Authority offers a rebate between $500 and $1,500 for customers who install solar battery systems.
• Sacramento Municipal Utility District offers up to $10,000 in financial incentives per household for installing solar battery storage.
• San Diego Community Power offers customers a rebate of $250 to $350 per kilowatt-hour of installed solar battery storage.

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 (often called NEM 3.0). This allows homeowners to 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

Many reviewers mention OC Solar, Ameco, Sunlux, Sunrun and Soleeva for positive service, solid warranties and good equipment choices. Your actual experience may vary, so compare quotes and ask about panels, financing and service before signing a contract. Read our guide to the top solar companies in California for more information.

FAQ

Bottom line

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