Solar Panel Cost Guide in Monterey, CA (2025 Update)
- Monterey Solar Installation Cost: $7,050
- 25-Year Savings: $20,785
- Payback Period: 6.7 Years
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Average Cost of Solar Panels in Monterey
We go over average solar pricing in Monterey.
Currently, the national average cost of solar panels is $2.66 per watt. However, in Monterey, the average cost of solar panels is 3 per watt.To cover the typical energy usage of the average home in Monterey, most homeowners require a 2.9-kilowatt system. Using the per-watt figure above, a solar installation costs about $7,050, or $10,082 before the federal solar tax credit of 0 is applied.
How much you pay can be higher or lower than the average in Monterey depending on several factors, such as the kind of solar panels you choose and the solar installer you hire.But, once you've paid the upfront cost of installation, the payback for most homeowners is quite rewarding, with a net average savings of about $34,000 over 20 years on energy bills.
For a customized quote from a local solar installer that has been pre-vetted by the EcoWatch team, click the button below.
Solar savings over time in Monterey
| Year | Return on Investment |
|---|---|
| 1 years | $-5,512 |
| 3 years | $-2,436 |
| 5 years | $640 |
| 7 years | $3,715 |
| 9 years | $6,791 |
| 11 years | $9,867 |
| 13 years | $12,943 |
| 15 years | $16,019 |
| 17 years | $19,094 |
| 19 years | $22,170 |
| 21 years | $25,246 |
| 23 years | $28,322 |
| 25 years | $31,398 |
Top Solar Installers in Monterey
When making the switch to solar, many homeowners opt to hire a solar installation company since overseeing your solar installation yourself can be a time-consuming project. Also, if you’d like to maximize your investment in solar energy, opting for a solar installer can help with that as well. Different providers can offer warranties, expertise on how to install solar panels and sometimes even information on local incentives.
Working with a licensed solar company can make going solar easier. Here are our recommendations:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
See all of the solar companies in Monterey
Factors that Affect Solar Panel Costs in Monterey
For many Monterey homeowners, the decision to adopt solar energy rests on cost. However, the range of solar installation costs can be quite wide in Monterey, with typical prices between $20,000 to $40,000. There are a few factors that greatly influence the price you’ll pay, which we'll go over below.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to a variety of factors. One of the major factors is the system size, which is measured in kilowatts (kW). Solar power systems that have greater efficiency or power production require better technology and/or more equipment, both of which can increase costs. For each additional kilowatt you need, your cost can go up by about $3,470.The type of solar equipment you choose can bring your price up or down by thousands or even tens of thousands of dollars. If you get the most efficient solar panel brands, you’ll end up paying more upfront than if you opted for the most affordable panels. However, more efficient panels could save you more in the long run on your power bills. Additionally, extra products, like solar batteries, can bump up your total well above the Monterey average.
Solar Financing Terms
Solar panels can save you money on utility bills over time, but they can also be a big investment. That’s why many Monterey homeowners decide to finance their solar panel systems to make paying for solar more affordable.You’ll have to consider the long-term cost of financing options, including the total interest you’ll pay over the length of the loan. If you can only get a high-interest loan, then your total can be hundreds or even thousands of dollars more than the principal cost. Making a larger down payment or finding a solar loan with a low interest rate could reduce your costs remarkably.
Solar Panel Installation Company
The solar installer you hire to handle your switch to sustainable energy can play a part in your total costs. There are about 3 solar installation companies operating throughout Monterey, and each can charge varying amounts for labor and equipment.The size of the company sometimes plays the most considerable role in the cost of installation. Larger national companies, like SunPro and Sunrun, often have lower pricing because they have greater resources and better pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or discount can bring their pricing lower to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.61 | $15,157 | $39,276 | 7.0 years |
| 8 kW | $3.54 | $19,821 | $52,757 | 6.8 years |
| 10 kW | $3.47 | $24,290 | $66,432 | 6.7 years |
| 12 kW | $3.40 | $28,565 | $80,302 | 6.6 years |
| 14 kW | $3.33 | $32,646 | $94,366 | 6.4 years |
| 16 kW | $3.26 | $36,532 | $108,624 | 6.3 years |
| 18 kW | $3.19 | $40,224 | $123,076 | 6.2 years |
| 20 kW | $3.12 | $43,722 | $137,723 | 6.0 years |
How to Save on Solar Panels
The solar company you go with will be a major factor in determining not only your overall costs, but also the kinds of solar panel brands, warranties, and other equipment you can get. When choosing a solar company, there are some important things you should take into account, including:
- Warranty: An all-inclusive, long-term warranty can help keep your solar panels running for years to come and save you money on part replacement and repairs.
- Contract: Before you sign a contract with a solar installer, be sure to read it through completely so you understand the terms. Also, ask questions if you’re not certain about some of the terms, such as what the warranty covers and if there are any guarantees about energy production.
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a well-established certification organization for sustainable energy professionals. If your solar panel installer is NABCEP-certified, it likely has a good reputation and is qualified to get the job done well. Another way you can check your installer’s reputation is by reading reviews.
- Installation Process: One of the most important things to understand when going solar is the installation process itself. Be sure to clarify any details you should know with your solar company, such as what permits you should secure and how long the project will take.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
EcoWatch's Monterey, CA Solar Cost FAQs
What is the average cost of installing solar panels in Monterey?
The average cost of solar panels in Monterey is about $17,350 for a 5-kW system and $34,700 for a 10-kW system before the ITC, but the actual cost will depend on stuff like the model of solar panels you want, what size system you need and how much energy you consume.
Should I lease or buy solar panels in Monterey?
Leasing solar panels can be an appealing choice, because it usually comes with low or $0 upfront payments. The downside is that you won’t be able to save as much. If you lease, you don’t own the system, so you can’t claim any tax rebates and credits and your home value won’t increase. Buying solar panels is a better option if you want to maximize your savings.
Do solar panels increase your home value?
Solar panels can increase your home value considerably as long as you buy or finance your panels and don’t go for a solar lease or power purchase agreement (PPA). According to research done by Zillow, the average home value increases by about 4.1% after installing solar panels."
How long do solar panels last in Monterey?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher amount of energy production.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.