Solar Panel Cost Guide in Palo Alto, CA (2024 Update)

  • Palo Alto Solar Installation Cost: $7,249
  • 25-Year Savings: $18,517
  • Payback Period: 7.5 Years

See cost of a solar system near you:

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated February 03, 2024

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We work with a panel of solar experts to create unbiased reviews that empower you to make the right choice for your home. No other site has covered renewables as long as us, which means we have more data and insider information than other sites. Our rankings are never affected by revenue or partnerships.

Average Cost of Solar Panels in Palo Alto

Find out what the average cost of installing solar panels is in Palo Alto.

The average cost of a solar system in Palo Alto is 3 per watt.Because a 3.0-kW system is needed to cover the energy usage of a typical home in Palo Alto, the average price of going solar will be about $7,249 after claiming the federal solar tax credit of 0.

The prices above are just estimates to give you an idea of the cost of a solar panel system. The actual cost of going solar can vary depending on several factors, such as what size system you need, your energy consumption and what installation company you go with.For many homeowners, the upfront cost of solar is worth paying. On average you could be looking at about $31,000 in savings on utility bills over 20 years.

To get a free estimate from a pre-vetted solar installer in Palo Alto, you can click the button below.

Solar savings over time in Palo Alto

Year Return on Investment
1 years $-5,770
3 years $-2,813
5 years $145
7 years $3,102
9 years $6,060
11 years $9,017
13 years $11,975
15 years $14,932
17 years $17,889
19 years $20,847
21 years $23,804
23 years $26,762
25 years $29,719

Top Solar Installers in Palo Alto

DIY solar panel installation is a possibility, but it's an undertaking that can use up a lot of your time and energy. Using a solar panel installer can make swapping over to solar power much easier. A solar installer can also help save you money over time by providing warranties, repairs and system component replacements.

If you're looking for a solar installer in Palo Alto, we've put together a list of our top suggestions here:

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Regional Coverage

Momentum Solar

★★★★★
4.5

  • Great warranty coverage
  • Representatives are experts on local policies
  • Concierge service ensures steady communication
  • Slightly limited service offerings

Best for Leasing

Sunrun

★★★★★
4.0

  • 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 Palo Alto

Factors that Affect Solar Panel Costs in Palo Alto

For many Palo Alto homeowners, the decision to go solar depends on cost. However, the range of solar installation costs can be quite wide in Palo Alto, with typical prices between $20,000 to $40,000. There are a number of factors that considerably influence the price you’ll pay, which we'll go over below.

Solar Equipment

When it comes to estimating the cost of a solar system in Palo Alto, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are primarily based on your home’s energy usage, which you can gauge by looking at past power bills. Your overall cost can increase by around $3,470 for each additional kilowatt you need.The brand and kind of equipment you get for your solar system can increase or decrease the price quite significantly. If you prefer a trusted brand name like Tesla or SunPower, these often come at a higher price than other brands. Efficiency also matters. Whether you’re opting for high efficiency because you have limited roof space or just want maximum energy production, you will be looking at a higher equipment cost, but this can typically lead to greater savings over time. Plus, if you want add-ons like an electric vehicle charger or solar batteries, this will also increase the cost.

Solar Financing Terms

Most solar installers in Palo Alto provide solar loans, which reduce the initial cost of installing solar panels.Even though solar loans make switching to solar energy more accessible for Palo Alto homeowners, they can also add to the total you pay for your system, depending on your interest rate and how long you take to pay off the loan. If you put down a larger down payment, though, you can avoid paying as much in interest.

Solar Panel Installation Company

The solar installer you choose to handle your switch to clean energy can play a role in your total costs. There are about 3 solar panel companies operating in Palo Alto, and each can charge varying amounts for labor and equipment.Some companies only sell high-efficiency and high-priced products — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come at a higher cost. It’s best to do some research and decide on the company that provides the products, warranties and services you want and also is within your budget.

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 $33,539 7.8 years
8 kW $3.54 $19,821 $45,107 7.6 years
10 kW $3.47 $24,290 $56,870 7.5 years
12 kW $3.40 $28,565 $68,826 7.3 years
14 kW $3.33 $32,646 $80,978 7.2 years
16 kW $3.26 $36,532 $93,323 7.0 years
18 kW $3.19 $40,224 $105,863 6.9 years
20 kW $3.12 $43,722 $118,597 6.7 years

How to Save on Solar Panels

The solar company you go with will be a major factor in determining not only your total costs, but also the types of solar panel brands, warranties, and other equipment you can get. When choosing a solar company, there are a few important things you should consider, including:

  • Contract: Read the contract terms carefully to make sure you understand how much it will cost, project timeline rebates and warranties.
  • Solar Panel Brands: Not all solar companies carry the same brands of solar panels, so the brand and type of panel you want can play a considerable role in the company you opt for.
  • Installation Process: Homeowners should understand how exactly the installation process will be carried out, as well as important factors like the project timeline.
  • Warranty: If you’re concerned about the endurance of your solar panels, checking if your company offers a 25-year, all-inclusive warranty can help put you at ease.

Best National Provider

SunPower

★★★★★
5.0

  • Most efficient panels on the market
  • National coverage
  • Cradle to Cradle sustainability certification
  • Great warranty coverage
  • Expensive
  • Customer service varies by local dealer

Best Regional Coverage

Momentum Solar

★★★★★
4.5

  • Great warranty coverage
  • Representatives are experts on local policies
  • Concierge service ensures steady communication
  • Slightly limited service offerings

Best for Leasing

Sunrun

★★★★★
4.0

  • Expansive service area
  • Many financing options
  • Some reported issues with customer service
  • Some reported issues with door-to-door sales

EcoWatch's Palo Alto, CA Solar Cost FAQs

How much does it cost to install solar panels in Palo Alto?

This is a difficult question to answer exactly, because the cost depends on a variety of factors. Generally speaking, it costs about $17,350 for a 5-kW system and $34,700 for a 10-kW system after the ITC is applied. It will be more expensive if you want additional solar equipment or higher quality panels, or if you have higher-than-average energy consumption. On the other hand, you can spend less if you go with a smaller solar panel system or less expensive solar panels.

Is cost the most important consideration when buying solar panels?

The upfront cost is a crucial factor to consider, but whether it’s the most important for you depends on your goals for going solar. In places where rooftop space is limited, efficiency can trump the cost. Other factors that are important to take into account are the quality and durability of your solar panels.

Can solar panels eliminate my power bills?

It is possible to erase your electricity bills with solar panels, but for most homeowners throughout Palo Alto, that will require at least a 10-kW system. Not all homes will have the roof space for that size system, so you’ll want to check with a local solar installer to see how many panels can fit on your roof.

How many solar panels do I need to power my home?

The exact number of solar panels you need depends on your household energy usage and the average daily sunlight your roof gets. You can take a look at your energy bills for the past year to get an idea of the solar system size you'll need. The average household has to get between 20 and 35 panels to account for their typical energy usage.

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.

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