Solar power in California
Last fact-checked on January 23, 2020, by Catherine Lane
California is one of the best places in the nation to install solar panels. A combination of high average sun exposure, expensive utility rates, solar tax credit, and the state’s net metering law means homeowners can get an excellent return by installing solar panels on their homes.
The Golden State also has some of the most aggressive greenhouse gas emission goals in the nation. California’s renewable portfolio standard requires utilities to derive 60% of their retail electricity from renewable sources by 2030.
California solar power facts
$2.78 watt
Average cost: 5kW solar power system
5 Years 4 Months
Average payback time
$73,714
Average lifetime savings
6¢ kWh
Levelized cost of solar energy
42¢ kWh
If you don’t get solar
8,621 kWh
Annual power production
Cash flow graph based on cash purchase of a 6.06kW system
Cashflow (in USD)Year0510152025$-14,000$-4,500$5,000$14,500$24,000$33,500$43,000$52,500$62,000$71,500
This 6.06kW system would offset 100% of your energy usage if your typical monthly bill in California is $171, however, your situation may vary so try our solar calculator to get a result tailored to you.
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How much can solar panels save you in California
Average total cost of solar panel installation in California
| System Size | Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
How much do solar panels cost in California?
$2.78 per watt
Cash purchased solar system
Before 26% solar tax credit
$3.11 per watt
Financed solar system
Before 26% solar tax credit
$17.3¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in California?
The biggest advantages in California for installing solar panels are the 1-for-1 net metering law and the 26% federal tax credit. California also offers a variety of financing options and incentive programs for low-income households. There are not many disadvantages to installing solar panels in California. If you’re a California homeowner, you’ll be kicking yourself that you didn’t get solar while all of these incentives were still around.
