Solar Cost Index

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.

Avg. electricity rate31¢/kWh
Typical system3.7 kW
Est. cost before incentives$11,400
Year-1 savings$1,240
25-yr net savings$30,800

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

Major utilities

PG&E, Southern California Edison, SDG&E, LADWP, SMUD

Solar by city in California

Get free solar quotes

Disclosure: we may earn a referral fee if you use these services. It never changes our estimates. You will leave this site, and your information goes directly to the company you choose.

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.