California Solar Panels Pricing & Installation Data

Solar Panels in California

Solar panels can be spotted all over The Golden State on roofs of homes and businesses alike. California is the nation’s solar energy capital. With the increasing urgency of addressing climate change, California has prioritized solar as a key part of its renewable energy strategy. Even numerous large-scale solar projects have popped up across the sunny state, including Topaz Solar Farm and Solar Star, among others, creating thousands of Megawatts of electricity. All in effort to reach 100% clean energy by 2045.

While solar power and other renewable energy options are booming in popularity, there is much to consider. Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.

Cost of Solar in California

The average price for a home solar panel system in California is $17,160 for 6kW or about $2.86 per watt. Systems will vary depending on the solar installation company, the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.

Costs by Solar System Size in California

For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.

I.E. Get the best bang for your buck.

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Pros and Cons of Solar in California

Unfortunately, nothing is perfect - including solar. To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.

Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.

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EnergyBot's Take

California has an ideal climate for solar panels. Plenty of sunlight during peak energy usage seasons. Also, electricity costs in California are relatively high compared to other states so in most cases solar panels in California deliver substantial savings.

Most homes will realize a slightly more expensive investment over 25 years versus buying electricity traditionally. However, if you prioritize energy independence and renewable energy, a near-breakeven scenario might be perfect for your situation.

If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.

Leasing vs Buying Solar Panels in California

There are several ways you can purchase and/or finance your solar panel installation in California. Your goals and financial situation will dictate which option is best for you.

Cash Purchase

The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.

Solar Loan

The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.

This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."

Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.

Solar Lease

Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.

Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:

• Renew your lease agreement
• Purchase the system
• End your lease agreement

Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.

Power Purchase Agreements

A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.

For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.

Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.

Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.

California Solar Incentives

As the top solar state in the country there are lots of incentives and  addition resources for solar systems on top of the 30% Federal Solar Tax Credit. You may be eligible for solar incentives that could significantly reduce the cost of solar panel installation. Particularly, if you live in a disadvantaged community. While there is not a statewide tax credit, there are some incentives are statewide and others are more local. Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.

This table shows the available incentives in California. But, just because you don't see it here doesn't mean it doesn't exist. Check with your local utility for other potential incentives.

Here are some additional California specific websites to search incentives and other resources:

California Solar Initiative (CSI)

Search this website to find information specifically for investor-owned utility territories in California. It provides information about incentives, eligibility requirements, and application procedures.

Go Solar California

This is a one-stop shop for solar resources. You can find solar programs, incentives, and rebates available in California. Explore incentives for residential, commercial, and government projects.

California Energy Commission (CEC)

The CEC offers information on incentives and rebates for solar installations for residential, commercial, and agricultural projects. They provides lists of available programs and resources.

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California Solar Companies

There are hundreds of solar companies in California. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.

To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.

The solar companies we partner with:

• Project Solar - A nationwide provider of solar panel systems that has a non-sales-oriented approach to building your system. They build your system from their central office and send a local company to complete the solar panel installation.
• EnergySage - The largest online solar installation network. They work with thousands of installers to help you find the perfect solar system for your home. With thousands of successful solar installations, they can give you a range of bids and pricing options.
• Tesla - Brains behind some of the most cutting-edge technology in the automotive industry, Tesla also offers sleek and powerful solar systems and battery systems.

We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.

Before You Install Solar Panels

Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.

• What are the long-term savings and payback period for installing a solar panel system?
• How will installing solar panels impact my home's value?
• What is the system’s Return on Investment (ROI)?
• Are there any specific design or aesthetic considerations for solar panel installation?
• How do I weigh the environmental benefits against the costs of installation?
• What are the specific terms and conditions for the installer?

California’s Solar Mandate

As of 2023, California is the only state with a solar mandate for new construction. The solar mandate began January 1, 2020 along with the Title 24 energy code update, which happens every 3 years. The solar panel requirement is conditional for new construction residential homes. As of January 1, 2023, the next Title 24 Energy Code update, additional new construction commercial facilities have been added to the list.

Why Trust EnergyBot

We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.

Now using the same one-of-kind technology and platform we are helping consumers in California decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.

We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.

California Solar FAQs

What is the average cost of a solar panel installation in California?

The cost of solar panel installation in California can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.

A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives.

How many solar panels do I need?

The number of solar panels you would need depends on a variety of factors such as:

1. Your home's energy consumption: The first step is to calculate your household's energy use. You can do this by looking at your electricity bills to see how much electricity you use in a year, usually measured in kilowatt-hours (kWh). The average U.S. home uses around 10,400 kWh per year, but this can vary widely based on the size of your home, the efficiency of your appliances, and your personal habits.
2. The amount of sunlight your location receives: This can vary depending on where you live. For example, if you live in a place that has many sunny days like Arizona, you might require fewer solar panels compared to someone living in a place with less sunlight like Seattle.
3. The efficiency of the solar panels: Not all solar panels are created equal. Some panels can convert sunlight into electricity more efficiently than others. On average, residential solar panels have an efficiency rating between 15-20%. The higher the efficiency, the fewer panels you would likely need to meet your energy needs.
4. The size of the solar panels: Solar panels also come in different sizes. A common size for residential use is roughly 65 inches by 39 inches. Each panel typically produces around 250 to 400 watts of power, but this can vary.

To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.

What are the benefits of installing solar panels?

• Lower Electricity Bills:
  Once your solar panels are installed, you can generate your own electricity and reduce your reliance on the grid, which can lower your monthly bills.
• Environmental Benefits:
  Solar energy is clean and renewable, so using it helps reduce greenhouse gas emissions and other harmful pollutants.
• Increased Home Value:
  Installing solar panels can increase the value of your home and make it more attractive to potential buyers.
• Long-Term Savings:
  While the upfront cost of installing solar energy systems can be high, they can pay for themselves over time through lower energy bills and other savings.

How do I know if my home is a good candidate for a solar system?

• Location:
  Homes in areas with lots of sunlight are generally better candidates for solar panels. If your home is shaded or doesn't receive much sunlight, it may not be the best choice.
• Roof Orientation:
  Ideally, your roof should be facing south to get the most sunlight throughout the day.
• Roof Condition:
  Your roof should be in good condition and able to support the weight of the solar panels. If your roof needs repairs or replacement, it's best to take care of that before your solar installation.

How long do solar installations take?

The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.

Your installer should be able to give you an estimated timeline based on your specific project.

What maintenance is required for solar panels?

Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.

Can I DIY my solar installation?

Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There is a lot that can go wrong, posing a potentially deadly hazard.

Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.

Also, many states require certain permits in order to install the panels to ensure safety. Including a construction permit and an electrical permit. Check out the permit websites for your city before taking on this endeavor.

Los Angeles

Solar Submittal Requirements

Solar Permit Forms and Applications

Guidelines for Solar Plan Check

San Fransisco

Preparation Solar Plans

Solar Permit Website

San Diego

Solar Installation Planning

How to Obtain Solar Permit

Residential Solar Permit

Sacremento

Steps to Get a Solar Permit

Permits Website

What type of solar panels should I purchase?

There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.