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EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.

Have you heard this one before? "One tree planted for every purchase made."

Chances are, you have, and probably more than once. Trees have become the poster child for demonstrating a commitment to environmental sustainability, with a constantly growing list of businesses, politicians, and nonprofits rallying around the idea that we can use forests to climb out of the climate crisis we've created through our use of fossil fuels.

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Leading Glasgow club and music venue SWG3 will use dancers' body heat as a renewable energy source to power the building and reduce carbon emissions. Michael Hunter

We've heard of wind, solar, thermal and tidal — but dance energy? Apparently, yes! Legendary nightclub SWG3 in Glasgow, Scotland will trial an innovative scheme to trap body heat from the dancers on its dance floor to heat and cool various parts of its complex.

Dubbed BODYHEAT, the system captures and converts human body heat created by staff and partiers inside the venue into a renewable energy source for the club to use, TimeOut reported. Importantly, the energy generated can also be stored for months until needed, long after the party is over.

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zstockphotos / iStock / Getty Images

With well over one million solar installations throughout the state, California has long been a leader in the U.S. solar industry. Recent legislation mandating that all new homes in the state must be built with solar panels likely leaves residents wondering about the cost of solar panels in California.

With ample sunshine, unnaturally high energy costs, ambitious climate goals and progressive leadership, California is ripe with solar potential. The preexisting availability of local solar providers in California allows solar customers the valuable opportunity to gather a large number of competing quotes, sometimes generating several thousand dollars worth of savings in the process.

You can start getting free, no-obligation quotes from top solar companies in your area by filling out the form below.

How Much Do Solar Panels Cost in California?

As of 2021, our market research and data from top brands shows the average cost of solar panels in California is around $2.73 per watt. This means a 5-kW system would cost around $10,101 after the federal solar tax credit is applied.

Here's how that price looks when applied to other system sizes:

Size of Solar Panel SystemCalifornia Solar Panel CostCost After Federal Tax Credit
5kW$13,650$10,101
6kW$16,380$12,121
7kW$19,110$14,141
8kW$21,840$16,162
9kW$24,570$18,182
10kW$27,300$20,202

It may surprise some readers that the cost of solar in California isn't as low as in many other states, but keep in mind that the real value of solar comes relative to the price of energy in the state (and California's is the highest in the country). All in all, solar energy provides excellent value to California residents.

Knowing the average solar panel cost in California is $2.73 per watt, a savvy solar customer can compare quotes against this figure to ensure they receive the best value possible. You may find that popular national brands don't have the lowest prices.

What Determines Solar Panel Prices?

The cost of solar panel installations in California largely depends on a homeowner's location and energy needs. In most cases, areas with higher local electricity rates offer more value from solar panels. Here are other factors that influence installation costs.

Solar Equipment Costs

Similar to most modern technology, solar products and system costs vary greatly based on their quality, scale and included features. Some customers may be satisfied with a modest array of affordable solar panels and inverters, while others may prefer a system with premium panels, full-home backup power and an electric vehicle charger.

Solar Financing

The overall cost of solar depends significantly on whether a customer chooses to finance or purchase their system in cash. Paying upfront provides the best return on investment and fastest solar panel payback period, as there are no fees or interest charges associated with it.

The two most common solar financing options include taking out a loan and leasing solar panels. If paying with a solar loan, be careful of high interest rates and early repayment penalties and other fees. Homeowners who lease their panels or sign power purchase agreements (PPAs) enjoy little to no upfront costs, but solar leases provide the least amount of overall value.

Solar Installation Costs

With nearly 2,500 solar companies throughout California, prices can range significantly based on the installer. Larger solar providers like Sunrun offer the advantage of solar leases and quick installations. Local providers looking to get a leg up on their competition may offer lower prices to undercut the biggest names in the industry.

Solar Panel Cost After Incentives, Rebates and Tax Credits

California's progressive leadership has done good work in spurring investment in renewable energy. All homeowners are eligible for the federal solar tax credit, and the state offers several incentive programs and solar rebates aimed at further increasing access to reliable, affordable solar panels. However, given the state's ambitious climate targets and the energy burden on most of its population, it could probably do more.

Let's take a closer look at the solar incentives available to California residents.

Federal Solar Tax Credit

All California residents are eligible for the federal solar investment tax credit, or ITC, for installing PV solar panels and any other eligible solar equipment. Any reputable solar installer will assist in the process of claiming the ITC on your federal tax returns. Claiming the ITC deducts 26% of the total cost of your solar installation from the taxes you owe.

To be eligible for the solar tax credit, homeowners must own the solar energy system, either having paid for it in cash or by taking out a solar loan. Homeowners who lease solar panels are not eligible to claim the ITC.

California Net Metering Programs

Net energy metering (NEM), or net metering, allows customers to feed the surplus energy generated by their solar panels back to their local power grid in exchange for energy credits from their utility company. As most solar energy systems generate more energy than can be used during the day, this incentive provides homeowners additional savings on their electricity bills and lowers the demand for grid-supplied electricity in the region.

California currently offers a statewide net metering incentive for residents generating electricity with solar panels. Exact credit values will vary based on your utility company.

California Solar Tax Incentives and Rebate Programs

There are also a handful of California solar incentives to help lower the cost of solar for residents. Some of these include rebates, loans and property tax exemptions. Though any quality solar company will be knowledgeable about the local incentives in your area, it's always worth doing some independent research. We recommend using the DSIRE solar incentive database to find money-saving opportunities in your area.

FAQ: Average Cost of Solar Panels in California

Is it worth going solar in California?

One of the sunniest climates in the country makes California one of the best states in the U.S. for generating energy with solar power. The ample sunshine, generous net metering policies and pre-existing availability of solar installers provide a great deal of value for solar customers in California.

How much does it cost to install solar panels in California?

As of 2021, the average cost of solar panels in California is $2.73 per watt. This means a 5-kW system would cost around $10,100 after the solar tax credit. Heavy investment in renewable energy has lowered the cost of solar in the state significantly, and this cost offers great value relative to high local energy prices. The best way to assess how much solar would cost you is to consult local providers near you for free estimates.

Do solar panels increase home value in California?

Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the areas in California where solar panels increase home value the most correspond with the areas that have the most solar-friendly policies. It's worth noting that even if your home's value increases, California has laws in place to ensure your property taxes don't rise as the result of a solar installation.

How much do solar panels cost for a 2,500-square-foot house?

Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is a more important factor in determining solar panel cost in California. The higher the energy costs in your home, the greater your cost of solar will be.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

Tuskless elephants in South Africa. Peter Chadwick / Getty Images

During Mozambique's civil war from 1977 to 1992, around 90 percent of the elephants in what is now the Gorongosa National Park were poached for ivory to finance the conflict.

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A billowing smokestack at the Pinova plastic resin manufacturing facility in Brunswick, Georgia on Dec. 14, 2020. Paul Hennessy / NurPhoto via Getty Images

Plastic has infiltrated every aspect of our lives and planet, with microplastics in our tea bags and even plastic pollution found in some of the most remote parts of the world. It's no secret that our reliance on these fossil fuel-based products and packages is damaging Earth, but a new report from Beyond Plastics shows just how detrimental plastic can be.

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zstockphotos / iStock / Getty Images

With well over one million solar installations throughout the state, California has long been a leader in the U.S. solar industry. Recent legislation mandating that all new homes in the state must be built with solar panels likely leaves residents wondering about the cost of solar panels in California.

With ample sunshine, unnaturally high energy costs, ambitious climate goals and progressive leadership, California is ripe with solar potential. The preexisting availability of local solar providers in California allows solar customers the valuable opportunity to gather a large number of competing quotes, sometimes generating several thousand dollars worth of savings in the process.

You can start getting free, no-obligation quotes from top solar companies in your area by filling out the form below.

How Much Do Solar Panels Cost in California?

As of 2021, our market research and data from top brands shows the average cost of solar panels in California is around $2.73 per watt. This means a 5-kW system would cost around $10,101 after the federal solar tax credit is applied.

Here's how that price looks when applied to other system sizes:

Size of Solar Panel SystemCalifornia Solar Panel CostCost After Federal Tax Credit
5kW$13,650$10,101
6kW$16,380$12,121
7kW$19,110$14,141
8kW$21,840$16,162
9kW$24,570$18,182
10kW$27,300$20,202

It may surprise some readers that the cost of solar in California isn't as low as in many other states, but keep in mind that the real value of solar comes relative to the price of energy in the state (and California's is the highest in the country). All in all, solar energy provides excellent value to California residents.

Knowing the average solar panel cost in California is $2.73 per watt, a savvy solar customer can compare quotes against this figure to ensure they receive the best value possible. You may find that popular national brands don't have the lowest prices.

What Determines Solar Panel Prices?

The cost of solar panel installations in California largely depends on a homeowner's location and energy needs. In most cases, areas with higher local electricity rates offer more value from solar panels. Here are other factors that influence installation costs.

Solar Equipment Costs

Similar to most modern technology, solar products and system costs vary greatly based on their quality, scale and included features. Some customers may be satisfied with a modest array of affordable solar panels and inverters, while others may prefer a system with premium panels, full-home backup power and an electric vehicle charger.

Solar Financing

The overall cost of solar depends significantly on whether a customer chooses to finance or purchase their system in cash. Paying upfront provides the best return on investment and fastest solar panel payback period, as there are no fees or interest charges associated with it.

The two most common solar financing options include taking out a loan and leasing solar panels. If paying with a solar loan, be careful of high interest rates and early repayment penalties and other fees. Homeowners who lease their panels or sign power purchase agreements (PPAs) enjoy little to no upfront costs, but solar leases provide the least amount of overall value.

Solar Installation Costs

With nearly 2,500 solar companies throughout California, prices can range significantly based on the installer. Larger solar providers like Sunrun offer the advantage of solar leases and quick installations. Local providers looking to get a leg up on their competition may offer lower prices to undercut the biggest names in the industry.

Solar Panel Cost After Incentives, Rebates and Tax Credits

California's progressive leadership has done good work in spurring investment in renewable energy. All homeowners are eligible for the federal solar tax credit, and the state offers several incentive programs and solar rebates aimed at further increasing access to reliable, affordable solar panels. However, given the state's ambitious climate targets and the energy burden on most of its population, it could probably do more.

Let's take a closer look at the solar incentives available to California residents.

Federal Solar Tax Credit

All California residents are eligible for the federal solar investment tax credit, or ITC, for installing PV solar panels and any other eligible solar equipment. Any reputable solar installer will assist in the process of claiming the ITC on your federal tax returns. Claiming the ITC deducts 26% of the total cost of your solar installation from the taxes you owe.

To be eligible for the solar tax credit, homeowners must own the solar energy system, either having paid for it in cash or by taking out a solar loan. Homeowners who lease solar panels are not eligible to claim the ITC.

California Net Metering Programs

Net energy metering (NEM), or net metering, allows customers to feed the surplus energy generated by their solar panels back to their local power grid in exchange for energy credits from their utility company. As most solar energy systems generate more energy than can be used during the day, this incentive provides homeowners additional savings on their electricity bills and lowers the demand for grid-supplied electricity in the region.

California currently offers a statewide net metering incentive for residents generating electricity with solar panels. Exact credit values will vary based on your utility company.

California Solar Tax Incentives and Rebate Programs

There are also a handful of California solar incentives to help lower the cost of solar for residents. Some of these include rebates, loans and property tax exemptions. Though any quality solar company will be knowledgeable about the local incentives in your area, it's always worth doing some independent research. We recommend using the DSIRE solar incentive database to find money-saving opportunities in your area.

FAQ: Average Cost of Solar Panels in California

Is it worth going solar in California?

One of the sunniest climates in the country makes California one of the best states in the U.S. for generating energy with solar power. The ample sunshine, generous net metering policies and pre-existing availability of solar installers provide a great deal of value for solar customers in California.

How much does it cost to install solar panels in California?

As of 2021, the average cost of solar panels in California is $2.73 per watt. This means a 5-kW system would cost around $10,100 after the solar tax credit. Heavy investment in renewable energy has lowered the cost of solar in the state significantly, and this cost offers great value relative to high local energy prices. The best way to assess how much solar would cost you is to consult local providers near you for free estimates.

Do solar panels increase home value in California?

Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the areas in California where solar panels increase home value the most correspond with the areas that have the most solar-friendly policies. It's worth noting that even if your home's value increases, California has laws in place to ensure your property taxes don't rise as the result of a solar installation.

How much do solar panels cost for a 2,500-square-foot house?

Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is a more important factor in determining solar panel cost in California. The higher the energy costs in your home, the greater your cost of solar will be.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

The film Footsteps on the Wind raises awareness about children displaced by war and climate change.

In the last decade, more than 40 million children have had to flee their homes because of conflict and the climate crisis.

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The Statue of Liberty sits behind a cloud of haze from wildfire smoke on July 20, 2021, as New York City had its worst air quality day in 14 years. Spencer Platt / Getty Images

Smoke from wildfires burning across the American West causes greater health damage east of the Rockies than to their west, a new study shows.

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People exit the "Beehive" building at the New Zealand Parliament on Lambton Quay in downtown Wellington, New Zealand, November 28, 2017. Smith Collection / Gado / Getty Images

By Andrea Germanos

New Zealand officials on Thursday heralded passage of a groundbreaking law requiring financial institutions to disclose climate-related risks.

"This is a landmark day," Commerce and Consumer Affairs Minister David Clark said in a speech to Parliament.

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6 Tricks for a Green Halloween

It's Less Spooky for the Planet.

Popular
EcoWatch Illustration by Devon Gailey

Ghosts and skeletons aren't the only thing that makes the Halloween season spooky; the waste generated from trick-or-treat candy, Halloween parties, costumes, pumpkin carving, and decorating should all be cause for fright.

A UK study found that 2,000 metric tons of waste are produced every year from Halloween costumes and clothes alone, which unfortunately isn't surprising, given that 83% of costume pieces are made from non-biodegradable plastic.

This year, leave the scaring to the ghosts and make your celebrations less frightful. Here are a few ways to green your Halloween.

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An electric vehicle parked in front of a charging station in Kolkata, India on Dec. 12, 2019. Indranil Aditya / NurPhoto via Getty Images

If you're driving a traditional car, on a common road, a gas station is typically never too far away. As more and more EV's hit the road, however, it only makes sense that charging stations become just as easy to find.

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Elephants are known as the gentle giants of the animal kingdom, but even they can get aggressive when their children are threatened.

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Peatlands in the Bogong High Plains, Victoria, Australia. Joslin Moore

Peatlands are unique wetland ecosystems that also provide an important sink for carbon dioxide. Unfortunately, they are under threat from human activity, and from the climate crisis itself.

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