Solar savings & payback in California
California runs about 32¢/kWh with net billing (reduced export rate). Enter your bill for a payback estimate tuned to local rates and sun, no federal tax credit assumed (it expired at the end of 2025).
- Avg electricity rate
- 32¢/kWh
- Solar generation
- ~4.6 kWh/kW/day
- Net metering
- Net billing (reduced export rate)
- Export credit
- ~30% of retail
State incentive: Very high rates mean self-consumption savings are large; SGIP rebates support batteries.
Where your money goes
Your 25-year money curve
What the planet gets
Net metering credits exported power against what you draw from the grid. Rates vary by state, California's NEM 3.0 pays much less for exports than 1:1 states.
Enter a valid monthly bill and tariff greater than zero to see your results.
How California compares to the US average
Three numbers decide most of your payback. Here's where California sits against the national picture.
Electricity rate
32¢/kWh
US average: 17¢/kWh
Higher rates make every solar kWh worth more
Solar generation
~4.6 kWh/kW/day
US average: ~4.5 kWh/kW/day
More sun per panel than the US average
Typical payback
8.9 years
US average: 10.6 years
Faster than the US average on a $150 bill
Solar cost & savings by system size in California
Computed with California's rate (32¢/kWh), sun (~4.6 kWh/kW/day), and its reduced export credit, at the 2026 national benchmark of ~$2.75/W with no federal credit.
| System size | Installed cost | Generation/mo | Annual savings | Payback |
|---|---|---|---|---|
| 4kW | ~$11,000 | ~552 kWh | ~$1,229 | ~8.9 yrs |
| 6kW | ~$16,500 | ~828 kWh | ~$1,844 | ~8.9 yrs |
| 8kW | ~$22,000 | ~1,104 kWh | ~$2,459 | ~8.9 yrs |
| 10kW | ~$27,500 | ~1,380 kWh | ~$3,074 | ~8.9 yrs |
Savings assume a home large enough to use this output. Figures last reviewed July 2026,size a system from your actual bill instead.
How exports are paid in California
NEM 3.0 (Net Billing Tariff) pays roughly 5-8¢/kWh for exports, about 75% less than retail. A battery to store and self-consume is now key.
Because California pays less than the full retail rate for exported power, the numbers reward using more of your own solar, running big loads in daylight, or adding a battery to store the surplus instead of exporting it cheaply.
Policies change often, always confirm current rules with your utility or at DSIREbefore deciding.
City-level calculators in California
Sun varies within the state, these pages tune the generation estimate to each metro's solar resource.
California solar FAQs
Is solar worth it in California in 2026?
For a typical $150/month bill, we estimate a California system pays for itself in about 8.9 years, with no federal tax credit assumed (the residential credit expired at the end of 2025). At 32¢/kWh with net billing (reduced export rate), the economics are solid for most suitable roofs.
How much does a solar system cost in California?
At 2026 benchmark prices (~$2.75/W), a 6kW system runs about $16,500 installed, generating roughly 828 kWh a month in California's sun. Local quotes vary 20-40% between installers, so always collect several.
What is the net metering policy in California?
NEM 3.0 (Net Billing Tariff) pays roughly 5-8¢/kWh for exports, about 75% less than retail. A battery to store and self-consume is now key.
Does California have a state solar incentive?
Very high rates mean self-consumption savings are large; SGIP rebates support batteries. Since the federal residential credit ended in 2025, state and utility incentives are the main upfront help available.
How many solar panels do I need in California?
A 3.5 kW system suits a typical $150/month bill in California, that's roughly 9 modern 425W panels needing about 228 sq ft of unshaded roof. Enter your own bill in the calculator above for a precise size.