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California · CA

Solar Panels in California:
Is It Worth It in 2026?

California averages 1606.2 kWh per kWp per year with 5.8 peak sun hours per day. At 30.29¢/kWh, an 8 kW system saves roughly $3,892/year and pays back in about 3.9 years.

💡 Highest electricity rates in continental US — solar saves more here than almost anywhere.

California Solar at a Glance

Peak sun hours / day5.8 hrs
Avg solar yield1606.2 kWh/kWp/yr
Electricity rate30.29¢ / kWh
Avg payback (8 kW)3.9 years
Annual savings (8 kW)$3,892/yr
Net meteringNEM 3.0 (export at avoided cost)

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in California

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

SGIP battery rebate (up to $1,000/kWh), NEM 3.0 net metering, local utility rebates

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Property value increase is tax-exempt.

All Available Incentives in California

Federal ITC (Section 25D) — Expired December 31, 2025 — no longer available for residential cash/loan
Property Tax Exemption — Solar-added home value not taxed
Net Metering — NEM 3.0 (export at avoided cost)

How Much Solar Power Do California Cities Get?

Real PVGIS yield data and EIA electricity rates for all 26 cities. Click any city for detailed payback calculations.

Los Angeles
1621.6 kWh/kWp · 3.8 yr payback
+6.5%
San Diego
1481.5 kWh/kWp · 4.2 yr payback
San Jose
1581.5 kWh/kWp · 3.9 yr payback
San Francisco
1595.3 kWh/kWp · 3.9 yr payback
Fresno
1568.6 kWh/kWp · 4 yr payback
Sacramento
1563.5 kWh/kWp · 4 yr payback
Long Beach
1630 kWh/kWp · 3.8 yr payback
+7%
Oakland
1541.7 kWh/kWp · 4 yr payback
Bakersfield
1601.9 kWh/kWp · 3.9 yr payback
+5.2%
Anaheim
1630.3 kWh/kWp · 3.8 yr payback
+7%
Riverside
1664.7 kWh/kWp · 3.7 yr payback
+9.3%
Stockton
1574.3 kWh/kWp · 4 yr payback
Santa Ana
1647.9 kWh/kWp · 3.8 yr payback
+8.2%
Irvine
1619.2 kWh/kWp · 3.9 yr payback
+6.3%
Chula Vista
1599.8 kWh/kWp · 3.9 yr payback
+5%
Fremont
1664.3 kWh/kWp · 6.2 yr payback
+18.9%
Santa Clarita
1727.3 kWh/kWp · 5.9 yr payback
+23.4%
San Bernardino
1645.7 kWh/kWp · 3.8 yr payback
+8.1%
Modesto
1589 kWh/kWp · 3.9 yr payback
Fontana
1708.7 kWh/kWp · 6 yr payback
+22.1%
Moreno Valley
1750.8 kWh/kWp · 5.9 yr payback
+25.1%
Oxnard
1586.5 kWh/kWp · 3.9 yr payback
Palmdale
1785.4 kWh/kWp · 3.5 yr payback
+17.2%
Hayward
1580.2 kWh/kWp · 3.9 yr payback
Escondido
1627.5 kWh/kWp · 3.8 yr payback
+6.9%
Sunnyvale
1604.8 kWh/kWp · 3.9 yr payback
+5.4%
Torrance
1538.3 kWh/kWp · 4.1 yr payback
Fullerton
1630.4 kWh/kWp · 3.8 yr payback
+7.1%
Orange
1653.5 kWh/kWp · 3.8 yr payback
+8.6%
Pasadena
1598.4 kWh/kWp · 3.9 yr payback
+5%
Personalized estimate

Enter your monthly bill — get exact payback numbers for California.

Calculator
All California incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in California: Frequently Asked Questions

Is solar worth it in California after NEM 3.0?
Yes — despite lower export credits, California's electricity rates (25–35¢/kWh) are among the highest in the US. Self-consumed solar still saves at the full retail rate, and a battery storage system can capture excess production for evening use. The average payback period is 5–7 years.
What is the SGIP rebate in California?
The Self-Generation Incentive Program (SGIP) offers rebates of $150–$1,000 per kWh of battery storage installed. For a 13.5 kWh Powerwall, that can mean $2,000–$13,500 back. Check with your utility for current availability.
How much does solar cost in California?
The average solar installation in California costs $2.37–$3.14 per watt, or $17,000–$22,000 for a 7 kW system before incentives. The federal solar tax credit (Section 25D) expired December 31, 2025.
What is California's solar net metering policy?
California uses NEM 3.0 (since April 2023). Excess solar sent to the grid earns credits at the 'avoided cost' rate (~5¢/kWh) rather than the retail rate. New solar owners should size systems for self-consumption and consider battery storage.

Going Solar in California: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in California. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in California average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 30.29¢/kWh in California, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    California does not have a statewide solar tax credit, but utility rebates and net metering may still apply. SGIP battery rebate (up to $1.

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in California typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for California: California averages 1606.2 kWh/kWp/year with 5.8 peak sun hours/day. Electricity costs 30.29¢/kWh. An 8 kW solar system saves ~$3,892/year and pays back in 3.9 years. SGIP battery rebate (up to $1,000/kWh), NEM 3.0 net metering, local utility rebates.