Solar Panels in California2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in California.
$19,000–$34,000
Avg system cost
$13,300–$23,800
After 30% ITC
5.5 hrs/day
Peak sun hours
$0.310/kWh
Avg rate
Is Solar Worth It in California?
Based on a home with a $150/month electric bill in California
Est. system size
2.7 kW
Gross cost
$7,717
Federal tax credit
−$2,315
Net cost
$5,402
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 3 years — then 17 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
California Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
California State
State Incentive
Property & sales tax exemptions + SELF low-income program
Additional California Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: Solar system value exempt from property taxes
Sales Tax Exemption: Solar equipment exempt from state sales tax
Solar Installation Cost in California by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $2,862,695/yr |
| 7 kW | $17,181,920 | $12,027,344 | $4,007,773/yr |
| 9 kW | $22,091,040 | $15,463,728 | $5,152,851/yr |
| 12 kW | $29,454,720 | $20,618,304 | $6,870,468/yr |
* Costs based on $2.90/W national average. California installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in California
How much do solar panels cost in California?
Solar installation in California typically costs $19,000–$34,000 before incentives. After the 30% federal tax credit, most homeowners pay $13,300–$23,800 net.
Is solar worth it in California?
Yes — California homeowners benefit from 5.5 average peak sun hours per day and relatively high electricity rates ($0.310/kWh). The 30% federal ITC combined with property & sales tax exemptions + self low-income program make the financial case strong for most homeowners.
What state incentives are available for solar in California?
Property & sales tax exemptions + SELF low-income program. On top of state incentives, all California homeowners qualify for the federal 30% Investment Tax Credit (ITC). Your solar system is also exempt from property tax assessment. Solar equipment is exempt from sales tax in ${s.name}.
How long is the payback period for solar in California?
Based on California's average electricity rate of $0.310/kWh and 5.5 peak sun hours, most homeowners see payback in 3–4 years. Systems then produce free electricity for 15–20+ more years.
Does California have net metering?
Yes — California has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.