Table of Contents
- How much do solar panels in California cost?
- Solar panel pricing vs electricity costs in California
- Average solar panel costs by system size in California
- Current solar incentives & rebates in California
- Is California good for solar?
- What not having solar panels in California will cost you
- What does the cost of solar panels in California depend on?
- Solar panel cost FAQs for California
How much do solar panels in California cost?
Going solar in the month of November, 2024 in California averages out to $3.1/W.
You should expect the price to be $3,100, on average, for every 1kW (or 1000 watts) of solar energy your solar panel system can produce. A 5kW panel install in California will typically cost you $10,850 after the 30% federal tax credit. Your energy consumption levels might require a larger system.
Solar panel pricing vs electricity costs in California
Across California, the average electric bill for an energy user is $156.08, with an average monthly usage of 496kWh. Compact residences, including duplexes, are also reflected in the numbers cited in the prior sentence.
In November 2024, the electricity rate in California averages 31.46¢ per kWh.
The average electricity consumer in California has to have 4kW or higher solar setup to take care of their full energy usage demands. Currently, 4kW setup costs $8,680 after deducting the 30% federal income tax credit.
Average solar panel costs by system size in California
Presented below, you will find a price breakdown for multiple solar panel system sizes set up in California. Although a more extensive solar installation comes with a larger expense, it also provides greater electricity savings and higher income tax credits.
| System Size | Roof Size Min. space required | Electricity Value Annual Production | Est. Price |
|---|---|---|---|
| 1kW | 72 ft² | $522 a year | $2,170 |
| 2kW | 143 ft² | $1,045 a year | $4,340 |
| 3kW | 215 ft² | $1,567 a year | $6,510 |
| 4kW | 286 ft² | $2,089 a year | $8,680 |
| 5kW | 358 ft² | $2,611 a year | $10,850 |
Current solar incentives & rebates in California
The REAP Grant can fund anywhere from 80% to 100% of the expenses associated with setting up solar energy or wind turbines for rural small businesses and farmlands.
For those looking into residential solar, the 30% federal income tax credit is offered to most people, which makes solar a feasible option in many states. In conjunction with federal efforts, state and local programs help to promote the use of solar power.
In California, 44 solar rebates and incentives are currently available from different utilities and government agencies.
Is California good for solar?
If you expect to own your residence longer than the solar system's payback period, solar panels are a smart investment in California. Installing a 5 kW solar system in California will, on average, save you $26,609.61 over 20 years, and you can expect to break even in about 6 years.
What not having solar panels in California will cost you
Not installing solar panels or any other backup energy system leads to missing the previously noted savings and full dependence on your electric utility for electricity. Recent news examples have shown that full reliance on your utility provider is not always ideal.
Over the past few years, customers in California have faced an average of 0.75 utility outages each year. On average, each outage lasts for 86.25 minutes. Major events like vandalism, aging infrastructure or wildfires can considerably extend these durations.
With or without a backup battery, a solar panel system could ease the stress of future power disruptions you might experience.
What does the cost of solar panels in California depend on?
- Your Energy Needs
- Make & Model
- Solar Panel Type
- Your Property
- Labor Rates
- Permitting & Interconnection
Bigger solar panel systems are more expensive, but the cost per watt decreases as well. A larger system that can completely cover your typical electricity bill would lead to the biggest savings long-term.
Solar panel cost FAQs for California
What do solar panels cost in California?
As of November, 2024, the average solar panel installation cost in California has reached $3.1/W. After federal tax credits, the installation of a 5 kW solar panel system in California is estimated to cost $10,850.
What incentives are available for solar in California?
If you live in California, you can find 44 rebates and incentives through different utilities and government agencies. Furthermore, almost all individuals are entitled to the 30% federal income tax credit.
What solar financing options are available to me?
While paying cash provides the most savings, various financing options for solar panels exist that also make financial sense. Financing options from installers will often be detailed in your initial quotes.
Is it worth it to get solar panels in California?
Yes, on average, 5 kW solar panels in California pay for themselves in 6 years, with homeowners saving approximately $26,609.61 on electricity over 20 years.
Will California pay you to get solar panels?
While California does not currently provide payments for solar installations, all U.S. residents can utilize the 30% federal income tax credit for such projects.
Can you get free solar panels in California?
In California, there are no free solar panel programs yet, but the 30% federal income tax credit, which most US citizens can access, greatly reduces the cost of installing solar panels.