No state in the whole country harnesses as much solar energy as California. Electricity bills are notoriously expensive, and until April of this year, it had some of the strongest financial incentives for switching to solar in the country.
However, statewide battles have shaken up the benefits you’ll receive for sending power back into the grid. While the scene has dramatically changed in recent months, California is still one of the best places in the country to go solar. If you’re a homeowner in the Golden State debating switching your home to renewable energy, we’ll cover the major and minor costs and how much you should expect to pay.
4.4
Installs high-quality Maxeon panels
Outstanding customer support
Best-in-class warranty lasts 40 years
3.7
Affordable prices
Excellent selection of panels and services
Locations in 22 states
4.3
No payments needed for 18 months
Provides in-house financing
Offers top brands like LG and Trina
3.9
Highly rated customer service
Provides 24/7 panel monitoring
Solid A+ rating with the BBB
How Much Do Solar Panels Cost in California?
Solar panels are slightly more expensive in California than the national average, but the strong financial incentives available statewide should help offset the initial price tag. The cost of a complete solar system is approximately $14,300, which comes to an average of $2.86 per Watt.
| Solar System Size | Energy Use | House Size (sq. ft.) | Total Cost ($) | Cost After the Federal ITC ($) | Energy Savings ($) |
| 3 kW | 300 kWh | 580 | $8,580 | $6,006 | $5,460 |
| 4 kW | 400 kWh | 770 | $11,440 | $8,008 | $7,333 |
| 5 kW | 500 kWh | 960 | $14,300 | $10,010 | $9,225 |
| 6 kW | 600 kWh | 1,150 | $17,160 | $12,012 | $11,142 |
| 7 kW | 700 kWh | 1,340 | $20,020 | $14,014 | $13,000 |
| 8 kW | 800 kWh | 1,540 | $22,880 | $16,016 | $14,954 |
| 9 kW | 900 kWh | 1,700 | $25,740 | $18,018 | $16,823 |
What Affects California Solar System Costs?
The price of your solar system can jump or drop by thousands of dollars depending on your energy needs and where you live. While California gets great statewide benefits, residents of cities like San Diego and Sacramento will get the best deals.
These are the major factors that will influence how much solar costs in CA:
- How much energy your home uses
- The energy efficiency of the panels you buy
- If you qualify for local benefits
We’ll go over how each of these factors affects solar prices and how your buying decisions should change to reflect them.
Energy Usage
The more solar panels you plan to buy, the more your system will cost you. Thankfully, California homeowners boast lower per capita energy consumption than almost every other state in the country.
With hundreds of solar-viable days to back it up, this has significant cost-cutting benefits for the average California consumer. System size is the greatest contributor to a solar system’s price tag, so having a low energy footprint means you can spend under $10,000 to achieve zero net energy.
Energy Efficiency
The best solar panels on the market are monocrystalline, but they cost about $0.30 more per Watt than their polycrystalline counterparts. While more expensive, monocrystalline panels have an energy efficiency of up to 24%, notably higher than the cheaper alternatives hovering around 16% efficiency.
California homeowners who don’t have as much roof space but still strive for energy independence should opt for higher-quality panels. You’ll need significantly less square footage, require fewer panels, and likely earn your money back 3-4 years sooner.
Strong Solar Incentives
There are some great financial incentives for going solar in California. You’ll skip out on sales tax and avoid bigger property taxes from the increased value of your home.
While the net metering laws have weakened away from the consumer’s side as of this April, you can still take thousands off of your electric bill each year if you’re part of the right electric grid. LA, San Diego, and most of Southern California are covered.
Will You Be On the Hook for Any Other Solar Costs in California?
Solar panels are already a massive financial decision before factoring in the extra costs. While the equipment is far pricier, here are a few hidden hurdles you should plan to jump through when switching to solar:
Inspections
The rates for an inspection in California range from $140 to $300 — though this can cost more if you need to remove panels already in place. With so many people buying solar panels in the Golden State, there’s usually a bit of a backlog, so this process can delay your installation date a few weeks.
Permits
Permits should cost under $324 in Northern California and can climb up to $400 in the southern part of the state. This is a one-time and state-mandated cost, so there’s no avoiding it. Remember that California recently extended a cap on solar permitting fees through 2025, so you won’t ever have to pay more than $450.
What Should California Homeowners Expect to Pay for Routine Solar Panel Maintenance?
Maintenance can be expensive, and most customers spend an average of $200-$500 annually. We can break this number down to explain the wide variation in cost.
To keep your solar panels performing optimally, you should aim to have them cleaned every six months and inspected once a year. The cleaning can be done on your own, but a professional service will cost you around $200 for a fifteen-panel system.
A professional inspection will cost you $150, and any broken or missing parts will cost you significantly more. However, these costs can drop or disappear depending on which solar panel installation company you work with. Read our article to explore top-rated solar energy firms.
We always recommend companies like SunPower that include warranty packages, which are highly beneficial to the customer. If you have a warranty package and parts do break, you shouldn’t have to spend a thing. Plus, if your system comes with a performance monitoring app, you should be able to stay up to date on how well they function over the years.
Is California a Good State for Solar Panel Costs?
The average price per Watt in California is $2.86, which is slightly higher than the national average of $2.66/W. However, most homes have much lower energy needs than houses in the rest of the country, so this price difference takes on a much smaller role when calculating total system costs.
The average home in California only needs a 5kW solar system, so you should be able to achieve energy independence by only paying $14,00 — and that number comes to under $10,000 after applying the Federal Tax Credit.
4.4
Installs high-quality Maxeon panels
Outstanding customer support
Best-in-class warranty lasts 40 years
3.7
Affordable prices
Excellent selection of panels and services
Locations in 22 states
4.3
No payments needed for 18 months
Provides in-house financing
Offers top brands like LG and Trina
3.9
Highly rated customer service
Provides 24/7 panel monitoring
Solid A+ rating with the BBB
The Financing Option You Choose Will Impact Your Solar Savings in California
Depending on how much money you’ve put aside for a solar investment, a different financing plan may be available for you. In our opinion, if you have the savings, the best way to go solar is through a cash purchase. The up-front costs are high, but 20 years later, you’ll have saved big on interest payments incorporated into loans. Plus, you’ll have full ownership of your system. Use our solar calculator to see how much you’ll save on your electric bill by switching to solar.
If monthly payments sound better, a solar loan will still give you system ownership. You’ll qualify for the 30% Federal tax rebate and programs like California’s property tax exemption.
Now, a solar lease won’t get you ownership of your solar system. However, your energy bills will be lower, and you won’t be responsible for maintaining your panels. Instead, a third party will own the solar panel system, and you’ll pay for the energy.
A power purchase agreement (PPA) is similar to a lease. Instead of paying a fixed monthly rate, your payments will depend on how much energy you use. With these last two options, you’ll spend less on electricity, but you won’t qualify for any rebates, and you won’t be investing in your property. You’ll unlikely benefit from a higher property value, as these systems are much more difficult to transfer.
One of the best financing options in California comes from Blue Raven Solar, with no payments needed for the first year and a half of service on its solar loan. You’ll still get to own your system, but for 18 months, you’ll just feel the rewards of a fully offset energy bill without any additional costs.
| Financing Method | Total 25-Year Savings ($) | Upfront Costs ($) | Monthly Payments ($) | Payback Period |
| Cash | $11,000 | $14,000 | $0 | 0 |
| Loan | $7,000 | $0 – 4,000 | $120 – $160 | 10 – 18 years |
| Lease | $3,000 | $0 | $100 – $140 | 20 – 25 years |
| PPA | $3,000 | $0 | Dependent on kWh | 10 – 20 years |
How Else Can California Homeowners Save Money When Going Solar?
Invest in a Solar Battery
Batteries like Tesla’s Powerwall can cost you $10,000 to $15,000, but California may be the best place in the country to buy one. The state recently updated its net metering laws with NEM 3.0, a bill that lowers the rate you’re paid for excess energy but strongly incentivizes owning a solar storage system.
Explore our review of Tesla Powerwall.
Take Advantage of Solar Incentives
On top of net metering and exemptions from sales tax and property tax, California will also cover almost 85% of the cost of a solar battery. The Self Generation Incentive Program (SGIP) reimburses you $850 for every kWh of storage capacity you install, resulting in a $12,000 rebate on a new 13.5 kWh battery.
Opt for Higher Efficiency Panels
You can cut costs in the short run by buying low-efficiency polycrystalline panels. However, your projected 25-year savings with top-tier solar panels are much higher. Your payback period drops, and you should also save on expensive repair costs with higher-quality panels.
How Much Do California’s Solar Installers Charge?
Remember, there’s a huge range of prices in the solar market. We’ve selected the best solar companies in the state, but you can still find a steal from within this list.
| Solar Company | Superlative | TH Rating | BBB Rating | Average Cost |
| SunPower | Best National Provider | 4.4/5 | A+ | $26,000 |
| ADT Solar | Best Warranty Coverage | 4.4/5 | A+ | $18,000 |
| Tesla | Best Technology | 4.3/5 | NR | $23,000 |
| Elevation Solar | Best for Boosting Energy Efficiency | 4.2/5 | A+ | $12,500 |
| Stellar Solar | Best Customer Service | 4.2/5 | A+ | $14,000 |
How Are Solar Costs and Regulations Trending In California?
Solar energy is getting dramatically cheaper in California each year, dropping over 50% in the past ten years. This data is especially prescient when contrasted with the rising electricity prices for homeowners. Energy prices are 68.7% higher in California than in the rest of the country and are expected to continue to increase.
There has been some pushback against solar power from California’s four major utility companies. The recent and highly disputed change to net metering laws was due to a perceived imbalance in favor of homeowners, who were getting an incredible rate for excess energy. The rate is still relatively high, but it’s dropped by 75% as of April. If homeowners invest in a solar storage system, these changes are much less dramatic — so we expect battery sales to rise.
FAQs About California Solar Panel Costs
Is it worth going solar in California?
California is one of the best states in the country to go solar. With hundreds of solar-viable days a year and relatively low electricity usage, you shouldn’t need more than a few panels to power your home. Plus, you can avoid paying the state’s astronomically high electricity prices.
How Much Do Solar Panels Cost in California?
Your home’s location, energy usage, and budget will all decide how much you spend on solar. However, the average for the state is around $14,000 in total.
How Do You Pay for Solar Panels in California?
There are four main ways to buy solar panels in California, each with its own pros and cons. A cash purchase will cost you more outright but will come with greater savings over the decades. A solar loan trades off lower up-front costs for higher interest rates. A solar lease and PPA won’t transfer ownership to you but are the cheapest options to switch to solar power.
