Note: In July 2024, SunPower notified dealers it would be halting all new shipments and project installations. The company also noted it would “no longer be supporting new Leases and PPA sales nor new project installations of these financing options.”
No state uses more solar power than California. Electricity costs here run nearly 70% higher than the rest of the country and keep climbing each year. By going solar, you’ll pocket between $9,000–$16,000 over two decades, with the exact amount depending on your property size and electricity usage.
Even with the April 2024 changes to net metering, California remains a top spot for solar adoption. A standard 5kW setup costs about $11,612 before incentives, dropping to roughly $8,128 after you claim the 30% federal tax credit. Homeowners typically recover their costs in 6–8 years.
Every month you delay switching to solar means lost savings. Below, I’ll break down the costs you can expect and show you how to get the most from your investment.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
How Much Do Solar Panels Cost in California?
California solar panel prices have dropped to $2.32 per watt in 2025, beating the old national average of $2.66/W. Complete system pricing varies by property size:
| Home Size (sq. ft.) | System Size | Total Cost | Cost After Tax Credit | 20-Year Savings |
| 580–700 | 3 kW | $6,967 | $4,877 | $5,460 |
| 700–950 | 4 kW | $9,289 | $6,503 | $7,333 |
| 950–1,150 | 5 kW | $11,612 | $8,128 | $9,225 |
| 1,150–1,350 | 6 kW | $13,934 | $9,754 | $11,142 |
| 1,350–1,550 | 7 kW | $16,257 | $11,380 | $13,000 |
| 1,550–1,700 | 8 kW | $18,579 | $13,005 | $14,954 |
| 1,700–2,000 | 9 kW | $20,901 | $14,631 | $16,823 |
Solar prices keep falling in California, making 2025 perhaps the smartest time to buy. System costs have dropped by half over ten years while utility rates climb steadily upward.
What Affects California Solar System Costs?
Solar system prices swing by thousands of dollars based on energy demands and where you live. California offers statewide incentives to everyone, but folks in San Diego and Sacramento often save more thanks to extra local rebates and steeper electricity rates.
Several key elements determine what you’ll pay:
Energy Usage
The panel count you need drives your total cost. Californians consume less power per person than citizens of almost any other state, according to data from the U.S. Energy Information Administration.
With sunshine bathing most of the state for 260+ days yearly, your lower power needs mean you can slash your electric bill to almost nothing for under $10,000 after incentives. A compact 3kW setup powers a 700 sq. ft. apartment, while typical houses need just 5–7kW systems.
Energy Efficiency
Panel selection forces a choice between price and performance. Monocrystalline panels cost roughly $0.30 more per watt but capture up to 24% of sunlight as electricity, while cheaper polycrystalline panels manage only about 16%.
On a 1,200 sq. ft. California bungalow with limited roof area, high-efficiency panels make dollars and sense. You’ll mount fewer panels, spend less on labor, and recover costs 3–4 years faster. Better equipment bought today usually rewards you later.
Strong Solar Incentives
California gives solar buyers concrete financial solar incentives that cut costs substantially. Solar equipment skips sales tax (saving about 7.25% upfront), and your property taxes won’t rise despite the added home value (keeping $300–$500 in your pocket yearly).
Following the April 2024 shift to NEM 3.0, customers of certain power companies still save thousands yearly. Those served by Southern California Edison, San Diego Gas & Electric, and Pacific Gas & Electric qualify for reduced but valuable credits.
Will You Be On the Hook for Any Other Solar Costs in California?
Solar panels are already a massive financial decision before factoring in the extra costs. While the equipment is far pricier, here are a few hidden hurdles you should plan to jump through when switching to solar:
Inspections
The rates for an inspection in California range from $140 to $300 — though this can cost more if you need to remove panels already in place. With so many people buying solar panels in the Golden State, there’s usually a bit of a backlog, so this process can delay your installation date a few weeks.
Permits
Permits should cost under $324 in Northern California and can climb up to $400 in the southern part of the state. This is a one-time and state-mandated cost, so there’s no avoiding it. Remember that California recently extended a cap on solar permitting fees through 2025, so you won’t ever have to pay more than $450.
What Should California Homeowners Expect to Pay for Routine Solar Panel Maintenance?
Maintenance can be expensive, and most customers spend an average of $200-$500 annually. We can break this number down to explain the wide variation in cost.
To keep your solar panels performing optimally, you should aim to have them cleaned every six months and inspected once a year. The cleaning can be done on your own, but a professional service will cost you around $200 for a fifteen-panel system.
A professional inspection will cost you $150, and any broken or missing parts will cost you significantly more. However, these costs can drop or disappear depending on which solar panel installation company you work with.
We always recommend companies that include warranty packages, which are highly beneficial to the customer. If you have a warranty package and parts do break, you shouldn’t have to spend a thing. Plus, if your system comes with a performance monitoring app, you should be able to stay up to date on how well they function over the years.
Is California a Good State for Solar Panel Costs?
The average price per Watt in California is $2.32, which is slightly less than the national average of $2.56/W. Most homes have much lower energy needs than houses in the rest of the country, so this price difference takes on an even bigger role when calculating total system costs.
The average home in California only needs a 5kW solar system, so you should be able to achieve energy independence by only paying $11,600 — and that number comes to under $10,000 after applying the Federal Tax Credit.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
The Financing Option You Choose Will Impact Your Solar Savings in California
Your payment method profoundly shapes your long-term savings. Having reviewed hundreds of California solar installations, here’s my breakdown of each option:
Cash Purchase
Cash purchase delivers maximum lifetime returns—roughly $117,431 over 25 years for a standard 5kW system. You’ll pay $11,612 upfront before incentives, but dodge interest charges while boosting property value by 4–6%. Most cash buyers break even within 6–8 years.
Solar Loans
Solar loans balance initial outlay against future gains. With $0–$4,000 down, expect to pay $100–$140 monthly for 10–15 years. You’ll qualify for all tax benefits while saving approximately $75,000–$90,000 over 25 years after interest.
Solar Leases
Solar leases need no money down but yield modest savings—around $30,000–$40,000 over 25 years. Monthly payments run $90–$130 for the power generated, but the system belongs to someone else, and you miss tax incentives. Leases suit those with tight cash flow or credit challenges.
PPAs
Power purchase agreements (PPAs) also start with $0 down, with fees tied to actual energy production. Like leases, PPAs offer simplicity but smaller lifetime savings.
For most Californians with decent credit, a solar loan with a modest down payment strikes the best balance between immediate affordability and long-term rewards.
| Financing Method | Total 25-Year Savings ($) | Upfront Costs ($) | Monthly Payments ($) | Payback Period |
| Cash | $11,000 | $14,000 | $0 | 0 |
| Loan | $7,000 | $0 – 4,000 | $120 – $160 | 10 – 18 years |
| Lease | $3,000 | $0 | $100 – $140 | 20 – 25 years |
| PPA | $3,000 | $0 | Dependent on kWh | 10 – 20 years |
How Else Can California Homeowners Save Money When Going Solar?
Explore these three options to save even more when switching to solar.
Invest in a Solar Battery
Batteries like Tesla’s Powerwall can cost you $10,000 to $15,000, but California may be the best place in the country to buy one. The state recently updated its net metering laws with NEM 3.0, a bill that lowers the rate you’re paid for excess energy but strongly incentivizes owning a solar storage system.
Explore our review of Tesla Powerwall.
Take Advantage of Solar Incentives
On top of net metering and exemptions from sales tax and property tax, California will also cover almost 85% of the cost of a solar battery. The Self Generation Incentive Program (SGIP) reimburses you $850 for every kWh of storage capacity you install, resulting in a $12,000 rebate on a new 13.5 kWh battery.
Opt for Higher Efficiency Panels
You can cut costs in the short run by buying low-efficiency polycrystalline panels. However, your projected 25-year savings with top-tier solar panels are much higher. Your payback period drops, and you should also save on expensive repair costs with higher-quality panels.
How to Choose the Right Solar Panel System for Your California Home
Finding your ideal solar setup involves more than price shopping. Here’s how to secure the best match for your needs:
1. Start With an Energy Audit
Before contacting solar companies, pull your last year of electric bills to calculate average monthly usage. Most California homes consume 400–700 kWh monthly, though this swings widely based on house size, appliances, and habits.
Every 100 kWh of monthly usage calls for roughly 1 kW of solar capacity. A professional energy audit might uncover efficiency upgrades that shrink the system size needed, potentially saving thousands.
2. Consider Your Roof’s Specifications
Your roof’s age, condition, direction, and shading heavily impact solar output. South-facing roofs generate about 20% more power than east or west-facing surfaces across California.
Need a new roof within 5 years? Replace it before adding solar to avoid costly panel removal and reinstallation (typically $2,000–$3,000). Dealing with heavy shade? Premium panels or microinverters often justify their higher price by maximizing production.
3. Plan for Future Needs
Factor in upcoming changes to your energy consumption. Adding an electric car? Budget for another 2.5 kW of capacity. Switching from gas to electric heating? You’ll likely need an extra 1–2 kW.
Battery storage becomes much easier to add later if your initial setup includes compatible hardware. Most installers can size inverters to accommodate future expansion without replacing costly components.
4. Evaluate Warranty Coverage
Strong warranties safeguard your investment. Seek equipment warranties running 25 years for panels (guaranteeing at least 85% production by year 25), workmanship warranties of 10+ years covering installation issues, and performance guarantees that compensate you if output falls short.
These protections prove especially valuable in California, where system performance directly affects financial returns under the NEM 3.0 net metering program.
How Much Do California’s Solar Installers Charge?
Remember, there’s a huge range of prices in the solar market. We’ve selected the best solar companies in the state, but you can still find a steal from within this list.
This site receives compensation from some of the companies featured in this listing, which may impact where and how products appear. When you click “Get Quote,” you will be connected with partners who may contact you with information related to your inquiry. This listing doesn’t feature all companies, products, or offers that may be available.
|
Company
|
Best For
|
Our Rating
|
BBB Rating
|
Link |
|---|---|---|---|---|
 Tesla Energy
Our Review
|
Best Technology | NR | Our Review | |
 Elevation Solar
Get Quote
|
Best Customization Options | NR | Get Quote | |
 Stellar Solar
|
Best Customer Service | A+ |
How Are Solar Costs and Regulations Trending In California?
Solar energy is getting dramatically cheaper in California each year, dropping over 50% in the past ten years. This data is especially prescient when contrasted with the rising electricity prices for homeowners. Energy prices are 68.7% higher in California than in the rest of the country and are expected to continue to increase.
There has been some pushback against solar power from California’s four major utility companies. The recent and highly disputed change to net metering laws was due to a perceived imbalance in favor of homeowners, who were getting an incredible rate for excess energy. The rate is still relatively high, but it’s dropped by 75% as of April. If homeowners invest in a solar storage system, these changes are much less dramatic — so we expect battery sales to rise.
This site receives compensation from the companies featured in this listing, which may impact where and how products appear. This listing doesn’t feature all companies, products, or offers that may be available.
Frequently Asked Questions
Yes, solar makes financial sense for most California homeowners, with electricity prices nearly 70% above national averages and climbing yearly. A standard 5kW setup runs about $11,612 initially but costs just $8,128 after tax credits and pays for itself within 6–8 years.
This investment saves roughly $117,431 over 25 years while adding 4–6% to home value without triggering higher property taxes. Ideal candidates use 500+ kWh monthly, have south or west-facing roofs with little shade, and plan to stay put at least 5 years.
California solar panels average $2.32 per watt in 2025, with full systems ranging from $6,967 for smaller homes to $23,224 for larger properties before incentives. The 30% federal tax credit drops a typical 5kW system for a medium-sized home to around $8,128.
Labor makes up roughly 35% of these costs, equipment accounts for 60%, and permits take the remaining 5%. Premium panels run $3.00–$3.50 per watt, while mid-range options cost $2.30–$2.80 per watt, with final prices varying by roof complexity and local building codes.
California homeowners choose from four main solar payment methods: cash, loans, leases, and power purchase agreements. Cash yields highest returns with 6–8 year payback, while solar loans balance affordability with ownership, requiring $0–$4,000 down and monthly payments often below your current electric bill.
Leases and PPAs demand no upfront payment but generate lower lifetime savings since another company owns the equipment and claims all incentives. For homeowners planning to stay put 5+ years, solar loans typically offer the best mix of initial affordability and long-term financial benefit.
