Data page · West region

Solar Panel Cost in California (2026)

A typical California rooftop system costs around $2.9/W cash, installed, before incentives — with most quotes landing between $2.4/W and $3.3/W. The federal residential tax credit is $0 for 2026 installations (it ended 12/31/2025).

Market estimate · compiled 2026-08 · sources: marketplace reports, NREL, EIA, state programs — see methodology.

Rooftop solar panels on a modern California home in California. — Typical California home with a rooftop solar array.

The federal residential solar tax credit (30% §25D) ended December 31, 2025.

Under the One Big Beautiful Bill Act, systems placed in service on or after January 1, 2026 do not qualify for the residential credit. Systems installed and operational by December 31, 2025 can still be claimed at 30% on the 2025 return. Commercial and third-party-owned (lease/PPA) projects may qualify under §48E — see the federal incentives page.

Status verified 2026-08-21. Confirm your circumstances with a qualified tax professional.

Typical cash price / watt

$2.90

range $2.40–$3.30 $/W

10 kW system (gross)

$29,000

$24,000–$33,000 · before incentives

Avg electricity rate

33.25¢/kWh

EIA May 2026 · avg use 503 kWh/mo

Export / net-metering

net billing

NEM 3.0 net billing: exports paid at avoided-cost-based rates (often $0.05–0.10/kWh). Reta…

Cost by system size

Gross installed cash price, before incentives. Net cost in 2026 = gross − $0 federal − any verified state/local incentive (see below).

Solar cost by system size in California
System size	Gross price range	≈ $/W	Panels (400–450 W)	≈ Production/yr
5 kW	$12,000–$16,500	$2.90	12–13	6,652 kWh
8 kW	$19,200–$26,400	$2.90	18–20	10,643 kWh
10 kW	$24,000–$33,000	$2.90	23–25	13,304 kWh
15 kW	$36,000–$49,500	$2.90	34–38	19,956 kWh

Solar resource & economics

Production factor (est.): 1547 kWh/kW/yr
10 kW annual production (est.): 13,304 kWh
Year-1 savings for 10 kW at avg rate, 35% self-use: $3,705
Simple payback (net cost ÷ Yr-1 savings, rough): ≈ 13 yrs

These are rough planning numbers. Model your exact scenario in the price calculator — assumptions are visible and adjustable.

Export policy detail

NEM 3.0 net billing: exports paid at avoided-cost-based rates (often $0.05–0.10/kWh). Retail net metering ended for new customers.

Why it matters: if exports are credited at the retail rate (1:1 net metering), every kWh counts the same. Under net billing or avoided-cost export, storing daytime power (battery) or shifting use matters far more. Your utility’s tariff — not the state average — decides this. Utility records

Incentives in California (status-aware)

Net Billing Tariff (NEM 3.0)

Current

Exports compensated at ~$0.05–0.10/kWh (avoided-cost based, varies by hour)

Retail-rate net metering ended for new customers. Batteries let you store daytime exports for evening use — the key lever under NEM 3.0.

Source: California Public Utilities Commission (Decision on NEM successor tariff, 2022) · Last checked 2026-08-21

Property tax exclusion for solar systems

Current

Active solar system excluded from assessed value

Prevents a solar add-on from raising property taxes.

Source: California Board of Equalization · Last checked 2026-08-21

Sales/use tax exemption for solar equipment

Current

Exempt from state sales tax

Confirmed current at last sweep.

Source: California Department of Tax and Fee Administration · Last checked 2026-08-21

Self-Generation Incentive Program (SGIP) — battery

Recheck needed

Historically $200–$1,000/kWh; program funding largely committed

Status needs verification at application time; many budget tranches are fully reserved. Confirm before relying on it.

Source: California Public Utilities Commission / SGIP · Last checked 2026-08-21

Tax exemptions: Property tax — current: Active solar excluded from assessed value. Sales tax — current: Solar equipment exempt from state sales tax.

Federal residential credit (§25D): expired 12/31/2025 — $0 for 2026 installations. Commercial/third-party-owned projects: see federal incentives.

Local considerations

Very high rates ($0.33/kWh avg) → strong avoided-cost economics despite net billing.
Metro bids can be $2.40–2.60/W; statewide median sits higher due to soft costs.
Batteries are the main lever under NEM 3.0 (shift daytime export to evening use).
NEM 3.0 vs grandfathering: systems installed before April 2023 keep older terms.

Battery note: batteries add roughly $1,000–$2,000/kWh installed and rarely pay for themselves on energy savings alone. In California, storage value depends on your export policy (net billing), TOU rates and outage risk — model it in the battery calculator.

Next steps

Run the price calculator Analyze a quote Incentive finder

Every estimate on this page is a planning range — only a site inspection and real quote give an exact price.

Data sources: EIA Electric Power Monthly (rates, May 2026) · NREL (solar resource) · marketplace cost reports & state programs (cost estimates, 2026) · incentive records last checked 2026-08-21. Full detail in methodology.