NorthSolarCalc › By State › California
🦅 California Solar Panel Calculator
California's sky-high electricity rates make solar the #1 home upgrade. NEM 3.0 applies to new installs.
Rates and incentive status reviewed 2026-07-27
Avg rate: $0.31/kWh · 5.82 peak sun hrs/day
Your Solar Estimate for California
Rates and incentive status reviewed 2026-07-27
3.4 kW
System Size
recommended
5.9 yrs
Payback Period
break-even
$55,035
25-Year Savings
net profit
2.2t
CO₂ Offset
per year
This estimate does not deduct the expired US federal 30% residential tax credit (ended for spending after 2025-12-31) or the closed Canada Greener Homes Grant/Loan. It also does not assume any unverified state, provincial, or utility rebate. See methodology and confirm current incentives with your state/province, utility, or a tax professional before budgeting for one.
⚠️ California has partial net metering — excess solar credits may be limited. Check with your utility.
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California Solar Facts
$0.31/kWh
Avg Electricity Rate
5.82 hours
Daily Peak Sun Hours
Expired (ended 2025-12-31)
Federal Incentive Status
Electricity rate: U.S. EIA / Statistics Canada utility filings. Peak sun hours: NREL PVWatts. Federal incentive status verified against IRS.gov and Natural Resources Canada. See methodology for full assumptions.
Net Metering in California
California has partial net metering — you receive some credit for excess solar energy, but at a reduced rate. Factor this into your ROI calculation.
Net metering rules are set by state/provincial regulators and utilities and can change — confirm current terms with your utility before purchasing.
Utility Landscape in California
Which of the three big investor-owned utilities serves your home changes the math more than almost anywhere else in the country. PG&E (northern and central California), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E, which has the highest retail rates of the three) all moved new solar applicants to NEM 3.0 — a "net billing" tariff — after April 2023. NEM 3.0 credits exported solar at a time-varying "avoided cost" rate that runs well below retail, often a fraction of what NEM 2.0 customers still grandfathered in receive. That gap is why the large majority of new California systems now ship with a battery: storing your own power for evening use is worth more than selling it back at NEM 3.0 rates. Note that municipal utilities — LADWP in Los Angeles, SMUD in Sacramento, and others — are not investor-owned and are not bound by the CPUC's NEM 3.0 decision; they set their own separate terms.
How Solar Varies Within California
Central Valley cities like Fresno and Bakersfield combine some of the state's highest peak sun hours with extreme summer heat that cuts into per-panel efficiency. The Bay Area's coastal marine layer measurably reduces summer-morning production in cities like San Francisco and Oakland compared to inland valleys only 30–40 miles away. San Diego's higher electricity rates mean a given system typically pays back faster there than in lower-rate parts of the state, even with similar sun hours.
Worth Knowing Locally
Utility-triggered Public Safety Power Shutoffs (PSPS) in wildfire-risk areas of Northern and inland California have made battery attachment as much about outage resilience as about bill savings for many buyers — a consideration that barely registers in most other states.
What This Estimate Does Not Assume
This calculator does not automatically apply the expired US federal 30% residential tax credit, the closed Canada Greener Homes Grant or Loan, or any unconfirmed state or utility rebate for California. If you find a currently active program, confirm it with the issuing agency — we link the general databases we trust in our methodology page.
Frequently Asked Questions
Is solar worth it in California?+
Does California still get the 30% federal solar tax credit in 2026?+
How long does solar take to pay back in California?+
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