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Nov 05, 2023

How Much Do Solar Panels Cost in California? (2023)

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York's Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.

Solar panel cost in California is around $2.51 per watt or $15,060 for a 6 kilowatt (kW) system. California ranks first in the country for installed solar capacity, with more than a fourth of its energy coming from solar panels. This is no surprise considering the state’s ample sunlight, solar-friendly policies and the availability of some of the best solar companies.

We at the MarketWatch Guides Team have analyzed the price of going solar to help you determine solar panel costs and incentives in California. While the cost of a solar system can vary based on factors such as your location, system size, installer and energy needs, going solar can help you save hundreds in annual energy bills.

An average solar panel system costs $2.51 per watt in California, less than the national average of $2.85 per watt. Using this number, the price of a 5 kW system is around $12,550. However, you can lower the upfront price with incentives such as the 30% federal solar tax credit. You can also use our solar cost calculator to estimate how much a solar system costs.

Here is a breakdown of what to expect regarding solar panel costs in California:

Several factors can increase or decrease the cost of solar panels in California, including:

California has an ambitious renewable portfolio standard (RPS) that requires utility companies to supply at least 60% of the state’s energy using renewable sources by 2030. With California’s solar potential, it is not surprising that several authorities and utilities offer a plethora of solar incentives. Here’s an overview of the incentives currently available in California:

California residents have a staggering 2,380 solar companies to choose from when going solar. Such a high number can make it difficult to find the right solar installer for your home. Based on our in-depth research, detailed consumer surveys and analysis of customer reviews, we selected the following providers as California’s best solar companies.

Before making a final decision, we recommend requesting solar quotes from at least three installers and comparing features such as price, equipment, warranties and company reputation.

California’s ample sunshine, growing solar potential and pro-solar policies make investing in solar worth it in most cases. At $2.51 per watt, Californians also enjoy a lower average cost of solar compared to the national average. Moreover, California electricity rates are nearly double the national average — allowing homeowners to save money on energy bills by going solar.

Homeowners can typically save tens of thousands on electricity costs over the average system lifespan of 25 to 30 years. Plus, Californians have access to some of the best solar companies — such as SunPower, ADT and Sunrun — that install leading residential solar panels with lengthy system warranties. California solar buyers can also enjoy other benefits such as solar incentives, increased property value, a lower carbon footprint through clean energy generation and resilience against power outages.

In California, a 6 kW home solar system can pay for itself in around 7.51 years. Considering most modern panels have a lifespan of up to 30 years, homeowners can enjoy around two decades of energy bill savings after recouping the cost of their system.

Although the state’s implementation of NEM 3.0 has reduced the benefit of net metering, several factors still make solar power lucrative in California. For example, California has high electricity rates of 29.54 cents per kWh, almost twice the national average of 16.11 cents per kWh. High electricity rates mean solar can save Californians almost twice what they would pay for traditional energy bills. Solar power also offers other benefits, including clean electricity generation and energy independence, making it a worthwhile decision with or without net metering.

Based on the average energy consumption in California, a home would need a 5 kW rooftop solar system to offset grid power consumption. Considering most modern solar panels typically have a power output of 400 to 450 watts (W) per panel, a 5 kW system would require around 12 solar panels. However, you may require a different number of panels depending on your system size, energy needs and budget.

Most solar panels purchased from reputed brands offer a 25-year product warranty with a 25- or 30-year production guarantee that promises a minimum degradation in panel capacity over time. As for the entire solar energy system, companies usually extend a 10-year warranty on inverters and batteries and a 10- to 25-year warranty on system workmanship.

We conducted in-depth research and analyzed several factors when determining our cost data, including:

Aniket Bhor is a solar engineer who has spent nearly a decade studying and working in the solar power sector in the European, Asian and North American markets. He is a climate enthusiast and avid cyclist, and he also loves to lose himself in books and cooking.

Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.