Solar Panel Cost Guide in Palo Alto, CA (2023 Update)
- Palo Alto Solar Installation Cost: $5,703
- 25-Year Savings: $18,517
- Payback Period: 5.9 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Palo Alto
We go over average solar pricing in Palo Alto.
While the national average of solar panels is $2.66 per watt, solar panels in Palo Alto generally cost about 2.73. The average solar panel system size in Palo Alto is around 3.0 kilowatts, meaning a cost of about $5,695 for a solar installation, or $8,144 before the 30% federal solar tax credit is applied.
How much you pay can go higher or lower than the average in Palo Alto depending on a variety of factors, such as the brand of solar panels you choose and the solar company you hire. But, after you've paid the upfront cost of installation, the payback for most homeowners is quite good, with a net average savings of about $31,000 over 20 years on utility bills.
To receive a free estimate from a pre-vetted solar installation company in Palo Alto, you can click the button below.
Solar savings over time in Palo Alto
| Year | Return on Investment |
|---|---|
| 1 years | $-5,622 |
| 3 years | $-5,461 |
| 5 years | $-5,299 |
| 7 years | $-5,138 |
| 9 years | $-4,976 |
| 11 years | $-4,815 |
| 13 years | $-4,653 |
| 15 years | $-4,492 |
| 17 years | $-4,330 |
| 19 years | $-4,169 |
| 21 years | $-4,008 |
| 23 years | $-3,846 |
| 25 years | $-3,685 |
Top Solar Installers in Palo Alto
Many homeowners opt for a solar installation company since trying to install solar panels on your own can be time-consuming. Companies can also have access to quality options of the best solar panels and help you choose which one will be best for you.
There are several licensed solar professionals that can install solar panels for you. Here are our suggestions:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
See all of the solar companies in Palo Alto
Factors that Affect Solar Panel Costs in Palo Alto
Cost is usually one of the most important factors for homeowners wanting to invest in solar. There are a few major factors that affect your total cost in Palo Alto: solar equipment and system size, financing options and the solar installation company you choose. We'll discuss each of these briefly below.
Solar Equipment
One of the most important factors to consider when it comes to the cost of adopting solar energy is the size of the solar system, which is measured in kilowatts (kW). The more power your household uses, the larger your system will likely need to be. You can expect to pay about $2,730 per kilowatt in Palo Alto. The type of solar panels and equipment you choose is another factor that will substantially affect costs. Solar panels that have higher efficiency, like monocrystalline panels, tend to cost more. Furthermore, solar equipment is more than just the solar panels themselves. You'll also need to decide on the kind of racks used to mount the panels, inverters, solar batteries, etc. It's important to take all of this into consideration when searching for a solar system that's in your budget.
Solar Financing Terms
Most solar installers in Palo Alto have solar loans, which reduce your upfront costs of installing solar. When trying to figure out your overall cost, you should also calculate the interest you'll pay if you choose to go with a solar loan. Also, paying more upfront can lower the total interest paid over time.
Solar Panel Installation Company
The solar company you opt for to handle your switch to renewable energy can have an effect on your total costs. There are about 3 solar installation companies operating in Palo Alto, and each can charge different amounts for labor and equipment. The company's size sometimes plays the most considerable role in your costs. Larger national companies, like SunPro and Sunrun, often have lower prices because of more resources and bulk pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or promotion can bring their pricing down to compete with bigger names.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.84 | $11,925 | $36,771 | 6.1 years |
| 8 kW | $2.78 | $15,594 | $49,334 | 6.0 years |
| 10 kW | $2.73 | $19,110 | $62,050 | 5.9 years |
| 12 kW | $2.68 | $22,473 | $74,918 | 5.8 years |
| 14 kW | $2.62 | $25,684 | $87,940 | 5.7 years |
| 16 kW | $2.57 | $28,741 | $101,114 | 5.5 years |
| 18 kW | $2.51 | $31,646 | $114,441 | 5.4 years |
| 20 kW | $2.46 | $34,398 | $127,921 | 5.3 years |
How to Save on Solar Panels
The company that does your solar panel installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Since picking a company can be a tough decision, we have some tips to help you, such as:
- Solar Panel Brands: Different companies offer various brands and types of panels. If you want a specific brand, make sure the solar panel installer you're considering has it.
- Contract: Though reading through a contract can be tedious, it's important to do it thoroughly so you can be sure you understand what services your solar company will provide and how part repairs and replacements will be handled.
- Reputation: Solar system installers that have great reviews from their customers and that have been in business for many years in most cases provide quality solar panel installation and expertise.
- Warranty: An all-inclusive, 25-year warranty can help keep your solar system running for a long time and save you money on part replacement and repairs.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
EcoWatch's Palo Alto, CA Solar Cost FAQs
How much does it cost to install solar panels in Palo Alto?
This is a tough question to answer exactly, because the cost depends on many factors. Broadly speaking, it costs about $13,650 for a 5-kW system and $27,300 for a 10-kW system after the ITC is applied. You can expect to pay more if you want additional solar equipment or higher quality panels, or if you have higher-than-average energy usage. On the flip side, you can spend less if you want a smaller solar panel system or less efficient solar panels.
Can you get solar panels for free in Palo Alto?
You can't get solar panels for free in Palo Alto. However, you may still be able to get them on a lower budget. You can lease solar panels for a low upfront cost or, if you'd prefer to own your solar panels, you can finance them with a solar loan.
Can solar panels significantly reduce my electricity bills?
Solar panels can potentially eliminate your electricity bills depending on where you're located and the efficiency of your system. Even if it doesn't get rid of them completely, you can save a lot of money on your bills, about $1,623.19 per year.
What solar power system size is right for my home?
The exact number of solar panels you need depends on your household energy usage and how much 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.