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How much do solar panels cost in San Francisco, CA?

  • Cost: About $2,226 for a 1 kW system to $11,130 for a 5 kW system after tax credit.
  • Savings: 32 year payback; about $-4,238 saved over 20 years.
  • Environmental benefits: Potential to reduce your carbon emissions significantly.

Installing a 5 kW solar panel system on your San Francisco home can cost about $11,130 after tax incentives. Solar panel systems are measured by kW production, and the average system costs about $3,180 per kW of installed capacity. Looked at another way, you'll pay about $3.18 per watt for installation.

That said, our data shows an a 3 kW system is the best size for San Francisco residents. This is because people in San Francisco consume 282 kWh per month of energy. The average electric bill is $28.72 per month with an average price of 10.19¢ per kWh. Considering this average, the right solar panel system has the potential to save you money in San Francisco.

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Are solar panels worth it in San Francisco?

Let's take a closer look at whether solar panels are worth it. To figure this out, you'll want to compare your estimated savings after solar to what you'd pay in energy without solar panels.

The payback period is the amount of time until you break even on your investment considering savings from energy bills. And the net 20-year savings is what you save over 20 years minus the upfront costs. Considering energy prices tend to rise over time, it's usually worth it to get solar panels if you can get a good installation price.

5 kWh System San Francisco Average U.S. Average
Upfront Cost $11,130 $12,530
Payback period 32 Years 7 Years
Net 20-year savings $-4,238 $22,173
*These are estimates. Getting personalized quotes from local installers is crucial for accurate pricing.

What's the best solar system size in San Francisco, California?

To find out the right size of the solar system for your home, consider your energy usage, local sun hours, and available roof space. Here's what the average solar potential looks like in San Francisco:

  • Roof size: 930 sq. ft.
  • System capacity: Up to 19,205 kW DC
  • Electricity production: About 1,629 kWh AC per year

The goal with solar panels is to find the sweet spot where you generate the electricity you need and can save enough energy costs to recoup your investment in a reasonable time.

Below you can see power generation, cost, and savings of different system sizes.

1 kW System 2 kW System 3 kW System 4 kW System 5 kW System
Roof Space 72 ft² 143 ft² 215 ft² 286 ft² 358 ft²
Annual power value $166 $332 $345 $345 $345
Average cost $2,226 $4,452 $6,678 $8,904 $11,130
Average yearly production 1,629 kWh 3,259 kWh 4,888 kWh 6,518 kWh 8,147 kWh
Average monthly savings* $13.84 $27.68 $28.72 $28.72 $28.72
Full payback period 6 years 13 years 19 years 26 years 32 years
CO₂ reduction per year 0.55 tons 1.11 tons 1.15 tons 1.15 tons 1.15 tons
*Savings assume a $28.72 monthly electricity bill

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How to pay for solar panels in San Francisco, California

Purchasing solar panels is no small task. Here are a few ways you can pay for solar:

  • Cash purchase: This is the best choice if you can afford it. Paying in cash gives you the best long-term savings but requires a larger upfront investment, of course.
  • Solar loans: You can spread the cost over time with a loan, but be mindful of interest rates and loan terms.
  • Solar leases and PPAs: Power purchase agreements (PPA) and leases have lower upfront costs. However, you don't own the system, which means you save the least over time. There can also be complications if you want to sell your home.

What affects the cost of solar panels in San Francisco?

Several factors impact the final price of your solar installation:

  • System size: Larger systems cost more upfront but often yield greater long-term savings.
  • Panel type and efficiency: Monocrystalline panels are generally more efficient and expensive than polycrystalline or thin-film options.
  • Installation complexity: Roof type, shading, and site-specific challenges can increase installation costs. Permitting and inspection fees also factor in.
  • Additional considerations: Battery storage adds to the initial investment but provides backup power and greater energy independence. Labor and installation quality are also essential cost considerations.

How to save on San Francisco, CA solar panel costs

Getting the most bang for your buck is essential when investing in solar. Here are some strategies to save money:

  • Maximize the federal tax credit: Understand the eligibility requirements and claim the full 30% credit.
  • Shop around for quotes: Get quotes from multiple installers to compare pricing and services. Don't just focus on the lowest price; consider reputation, experience, and warranty.
  • Consider system size: Be careful of going overboard. A properly sized system will meet your energy needs without unnecessary costs. Analyze your energy usage to determine the optimal size.
  • Explore financing options: Compare loan interest rates and terms carefully. If considering a lease or PPA, understand the long-term implications and potential trade-offs. Cash purchases often offer the best long-term savings.
  • Negotiate with installers: Don't be afraid to negotiate on price. Inquire about any discounts or promotions they may offer.
  • Optimize your home's energy efficiency: Before going solar, improve your home's energy efficiency. This will reduce your overall energy consumption and potentially allow you to install a smaller, less expensive solar system. Simple steps like sealing air leaks and upgrading appliances can make a difference.
  • DIY (if possible and permitted): While professional installation is generally recommended, some homeowners may be able to handle certain tasks themselves (like site preparation). Check your local regulations and be honest about your abilities.
  • Ask about rebates and incentives: Many states, cities, and utility companies offer rebates, net metering, and other incentives. Check with your local utility and city/county for any available programs.
  • Time your installation: Sometimes, installers offer discounts during slower periods. Inquiring about seasonal promotions might yield savings.

California-specific solar considerations

  • Weather Impacts: California offers diverse climates—from sun-soaked inland areas to cooler coastal regions. This means your solar performance can vary a bit by location, and you might need to tweak your system design to handle everything from wildfires to coastal fog.
  • Regulatory and Legal Considerations: California is known for its rigorous building and electrical codes, so working with a professional installer is a must. Also, many communities have their own guidelines, so check with local HOAs or zoning boards to ensure your setup meets all the standards.

Get a custom solar quote in San Francisco

Solar panels are worth it for many homeowners considering energy costs tend to rise over time. Compare your ongoing energy costs to the cost of a solar panel system to see if it's worth it for your San Francisco home. We recommend getting a few quotes from different solar installers to find the best option.

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Solar panel pricing in cities near San Francisco, California

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FAQs about San Francisco, CA solar panels

How much do solar panels cost in San Francisco, California?

Our data shows solar panels can range from $2,226 for a 1 kW system to $11,130 for an 5 kW system after tax credits. Total costs depend on the panel brand, type of inverter, installation company, and more.

How do I pay for solar panels?

The best ways to pay for solar panels include using cash or finding a loan with a good interest rate. We recommend avoiding power purchase agreements or solar panel lease programs since these reduce your savings significantly.

How much can I save with solar panels in San Francisco?

How much you save depends on your current energy costs, usage, and the size of the system you need. Our data shows the average 5 kW system in San Francisco saves owners $-4,238 over a 20-year period.

Do solar panels work during a power outage?

Grid-tied solar panels typically shut off during a power outage to protect utility workers. If you want security for outages in San Francisco, you can get a battery storage system to have a backup power supply.