California solar panels guide 2021
Updated October 30, 2020California is among the top states in the U.S. for home solar. High levels of solar irradiance, high electric costs, the 26% federal tax credit, and their net metering policy ensures that residents will benefit immensely from installing solar panels in California.
On this page:
Solar power prices, savings and payback in your part of California
The average cost for an installed residential solar system in California is currently $11,877 after claiming the 26% federal solar tax credit. This is $2.68 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.
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Prices based on a 5.9kW system, after 26% federal tax credit
Net profit (savings less system cost)
$47,718-$58,322
Payback period
5.4-6.6 years
Recommended size for the selected utility bill
5.9kW
Solar panel cost calculator
Cash flow graph based on cash purchase of a 5.9kW system
Are solar panels worth it in California
Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.
Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.
Levelized cost of solar energy
?
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime
5¢ /kWh
If you don't get solar
35¢ /kWh
(forecast avg California electric rates over the next 25 years)
CA solar panel cost calculator
California solar incentives & tax credits
Federal solar tax credit
The most significant incentive to install solar panels for homes and businesses is the federal tax credit. Right now, the federal tax credit is equal to 26% of the total installed costs of installing a solar system. At the end of 2020, the amount of the credit will fall to 22%. This means that in order to maximize your savings potential, the best time to go solar in California is now.
Net metering
California does have a state-wide net metering policy called NEM 2.0. In 2016, the California Public Utility Commission instituted NEM 2.0 which brough three major changes to net metering in the state, including:
- Imposing interconnection fees
- Changes regarding non bypassable charges
- Requiring utilities to implement time of use rates
NEM 2.0 mandates that each utility must set its own interconnection fee for customers to pay when they install solar. The new net metering policy also requires utilities to determine a time interval at which they will measure the amount of energy obtained from the grid.
Nonbypassable charges will then be paid on every kilowatt-hour (kWh) discharged from the grid within any given interval.
PACE financing
California offers PACE financing to homeowners looking to go solar.
Utility incentives
Some utilities in California do offer additional solar incentives. For example, the Sacramento Municipal Utility District offers their customers a $300 rebate when they install solar panels on their roof.
Property tax exemptions
California has a property tax exemption for solar panel systems. Under the Property Tax Exclusion for solar Energy Systems, 100% of the assessed value of the solar system is exempt from the homeowner’s property taxes.
Table 2: Available incentive programs
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Eligibility: Federal incentive
Type: Personal Tax Credit
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Eligibility: State incentive
Type: Low-Income Program
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Best unit price
$320.00 ($0.96 per watt)
Best system price
Installed 5.0kW system
$12,523.93
($2.49 p/w)
LG335N1K-V5 overview
Rated power
335 watts
Efficiency
19.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$562.50 ($1.50 per watt)
Best system price
Installed 4.9kW system
$11,931.63
($2.45 p/w)
LG375A1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$430.00 ($1.15 per watt)
Best system price
Installed 4.9kW system
$12,718.32
($2.61 p/w)
LG375Q1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$473.34 ($1.30 per watt)
Best system price
Installed 5.1kW system
$13,025.23
($2.55 p/w)
LG365Q1K-V5 overview
Rated power
365 watts
Efficiency
21.1
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$291.18 ($0.88 per watt)
Best system price
Installed 5.0kW system
$12,008.02
($2.43 p/w)
VBH330RA03K overview
Rated power
330 watts
Efficiency
19.7
Number of Cells
96
Cell type
Mono-crystalline Silicon
Manufactured
US
Best unit price
$340.00 ($1.00 per watt)
Best system price
Installed 5.1kW system
$14,280.00
($2.80 p/w)
VBHN340SA17 HIT+ overview
Rated power
340 watts
Efficiency
20.3
Number of Cells
96
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$432.00 ($1.31 per watt)
Best system price
Installed 5.0kW system
$12,202.42
($2.47 p/w)
VBHN330SA17E overview
Rated power
330 watts
Efficiency
19.7
Number of Cells
96
Cell type
monocrystalline
Manufactured
US
Best unit price
$297.60 ($0.89 per watt)
Best system price
Installed 5.0kW system
$13,059.05
($2.60 p/w)
VBHN335SA17 overview
Rated power
335 watts
Efficiency
20
Number of Cells
96
Cell type
monocrystalline
Manufactured
US
Best unit price
$800.00 ($2.22 per watt)
Best system price
Installed 5.0kW system
$12,335.47
($2.45 p/w)
SPR-X22-360 overview
Rated power
360 watts
Efficiency
22.2
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$600.00 ($1.83 per watt)
Best system price
Installed 4.9kW system
$11,968.01
($2.44 p/w)
SPR-E20-327-COM overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$12,803.99
($2.61 p/w)
SPR-E20-327-D-AC overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$12,717.55
($2.59 p/w)
SPR-E20-327 overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$240.01 ($0.60 per watt)
Best system price
Installed 4.8kW system
$12,341.39
($2.57 p/w)
CS3W-400PB-AG overview
Rated power
400 watts
Efficiency
17.9
Number of Cells
144
Cell type
polycrystalline
Manufactured
CA
Best unit price
$205.00 ($0.58 per watt)
Best system price
Installed 5.0kW system
$11,951.44
($2.40 p/w)
CS3U-355PB-AG overview
Rated power
355 watts
Efficiency
17.7
Number of Cells
144
Cell type
polycrystalline
Manufactured
CA
Best unit price
$207.90 ($0.66 per watt)
Best system price
Installed 5.0kW system
$12,561.32
($2.49 p/w)
CS3K-315MS overview
Rated power
315 watts
Efficiency
18.96
Number of Cells
120
Cell type
Mono-crystalline Silicon
Manufactured
CA
Best unit price
$247.00 ($0.75 per watt)
Best system price
Installed 5.0kW system
$12,948.87
($2.62 p/w)
CS1H-330MS BLACK overview
Rated power
330 watts
Efficiency
19.57
Number of Cells
60
Cell type
Mono-crystalline Silicon
Manufactured
CA
Best unit price
$196.11 ($0.65 per watt)
Best system price
Installed 5.1kW system
$12,310.27
($2.41 p/w)
LR6-60-HPB-300M overview
Rated power
300 watts
Efficiency
18.1
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$172.00 ($0.56 per watt)
Best system price
Installed 4.9kW system
$11,840.67
($2.43 p/w)
LR6-60-HPB-305M overview
Rated power
305 watts
Efficiency
18.4
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$165.00 ($0.53 per watt)
Best system price
Installed 5.0kW system
$12,079.73
($2.44 p/w)
LR6-60-HPB-310M overview
Rated power
310 watts
Efficiency
18.7
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$228.00 ($0.60 per watt)
Best system price
Installed 4.9kW system
$11,854.42
($2.40 p/w)
LR4-60HPH-380M overview
Rated power
380 watts
Efficiency
20.9
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Average cost of solar panel installation in California by system size
System size* |
Cash purchase(After tax credit) |
Financed purchase(After tax credit) |
|---|---|---|
| 4kW | $11,624 | $12,438 |
| 5kW | $14,040 | $15,023 |
| 6kW | $16,050 | $17,174 |
| 7kW | $18,599 | $19,901 |
| 8kW | $21,464 | $22,966 |
| 9kW | $23,364 | $24,999 |
| 10kW | $25,780 | $27,585 |
Best solar companies in the main cities of California
Home solar basics
Is it better to lease or buy solar panels in California
You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.
How long do solar panels last?
Minimum of 25 years but generally 30 or more
How do solar panels work on a home?
Solar panels power your house when they can but your home uses the utility company for power at other times. In 2021 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
How do solar panels work?
Grid-tied solar system
A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.
Hybrid solar system
In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.
Off-grid solar system
Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.
Read more about types of home solar systems.
Do solar panels require regular maintenance?
No, but cleaning them can improve power generation if they are dirty.
Will residential solar power system cost fall in California in 2021?
Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in California will fall during 2021.
How much electricity do solar panel systems generate in California?
Depending on the location, solar panels will generate different amounts of electricity.
A solar system that is installed on a south-facing 29-degree pitch roof California will generate 1,550kWh of peak DC (direct current) capacity per year per 1kW in the Los Angeles area.
Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.
What are the pros and cons of installing solar panels in California?
The biggest advantages in California for installing solar panels are the net metering policy and the 26% federal tax credit. Plus, there are some local utility incentives available that can save you even more.
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.
Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.
What you can learn from our state solar panel calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in California
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in California or
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this California solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
Related solar news
Ben Zientara
February 12, 2021
Big changes on the horizon for California net metering in 2021
California regulators are changing how solar owners connect to the grid & get credit for solar energy. The changes could greatly affect the solar industry.
Ben Zientara
January 26, 2021
The state of net metering in the United States in 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Catherine Lane
July 16, 2020
What’s new with California’s SGIP battery rebate in 2021?
The Self-Generation Incentive Program (SGIP) provides a hefty rebate for solar battery installations to homeowners.
Ben Zientara
July 2, 2020
Low-income solar incentives in the US
Across the US, several states have programs that provide free solar panels for low-income households.
Andrew Sendy
April 14, 2020
What solar incentives and rebates are available to California homeowners in 2021?
It is very difficult to search for solar incentives because there are many solar and energy efficiency incentives in CA for which your home would not be eligible. As such, we built this simple California solar incentives calculator that shows only the cur