Solar by state › California
Is solar worth it in California? (2026 numbers)
For a typical California home with a $164/month electric bill, a 3.7 kW system costs about $11,400 before incentives and saves about $1,240 in year one, paying back in roughly 9 years if you buy it. The federal 25D credit ended for systems installed after 2025, so many California homeowners now compare cash purchase against a lease or PPA.
Updated 2026-10-20. Figures are estimates being refreshed against EIA and NREL data. See methodology.
Net metering: Net Billing Tariff (NEM 3.0)
Since April 2023, new PG&E, SCE and SDG&E customers are credited for exports at avoided-cost rates well below retail, which makes a home battery much more valuable.
Incentives still available
- SGIP battery rebates (where funding remains)
- Property tax exclusion for solar
Major utilities
PG&E, Southern California Edison, SDG&E, LADWP, SMUD
Solar by city in California
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Frequently asked questions
Is solar worth it in California in 2026?
For a typical California home with a $164/month electric bill, a 3.7 kW system costs about $11,400 before incentives and saves about $1,240 in year one, paying back in roughly 9 years if you buy it. The federal 25D credit ended for systems installed after 2025, so many California homeowners now compare cash purchase against a lease or PPA.
How does net metering work in California?
Net Billing Tariff (NEM 3.0): Since April 2023, new PG&E, SCE and SDG&E customers are credited for exports at avoided-cost rates well below retail, which makes a home battery much more valuable.
What solar incentives are left in California?
The 30% federal homeowner credit (25D) ended for systems installed after December 31, 2025. State and local programs still include: SGIP battery rebates (where funding remains); Property tax exclusion for solar. Leases and PPAs can still pass through a federal business credit claimed by the system owner.
Should I add a battery in California?
Because exported solar earns less than retail in California, a battery that stores daytime solar for evening use usually improves savings, and it also gives you outage backup.