Solar Panel Cost Guide in San Jose, CA (2023 Update)
- San Jose Solar Installation Cost: $5,695
- 25-Year Savings: $19,644
- Payback Period: 5.6 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in San Jose
Let's take a look at the average cost of solar in San Jose.
Currently, the national average cost of solar panels is $2.66 per watt. However, in San Jose, the average cost of solar panels is 2.73 per watt. Because a 3.0-kW system is needed to cover the energy costs of a typical home in San Jose, the average price of going solar will be about $5,695 after claiming the federal solar tax credit of 30%.
These figures are only averages, and the cost of going solar for you will differ based on your energy needs and what company you want to go with. Many homeowners find adopting solar power is a sound investment. The average homeowner in San Jose can save about $32,000 on their energy bills over 20 years.
You can click the button below to get connected with a top solar installer in San Jose that can help you get a more accurate cost estimate for your home.
Solar savings over time in San Jose
| Year | Return on Investment |
|---|---|
| 1 years | $-4,681 |
| 3 years | $-2,654 |
| 5 years | $-627 |
| 7 years | $1,400 |
| 9 years | $3,427 |
| 11 years | $5,454 |
| 13 years | $7,482 |
| 15 years | $9,509 |
| 17 years | $11,536 |
| 19 years | $13,563 |
| 21 years | $15,590 |
| 23 years | $17,617 |
| 25 years | $19,644 |
Top Solar Installers in San Jose
When going solar, many homeowners choose to go with a solar installation company since installing solar panels yourself can be a difficult project. Companies can also have access to a large variety of the best solar panels and help you choose which one will be right for your home.
Working with a professional solar company can help you make the most of your investment in solar. 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 Warranty Coverage
Sunpro Solar
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
See all of the solar companies in San Jose
Factors that Affect Solar Panel Costs in San Jose
Cost is often one of the most important factors for homeowners who want to invest in solar. There are a few key factors that affect your total cost in San Jose: solar equipment and system size, financing options and the solar installation company you choose. We'll discuss each of these briefly below.
Solar Equipment
The size of the solar system you need for your household, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, your total will most likely increase by about $2,730. The solar equipment you choose can increase or decrease your cost by thousands or even tens of thousands of dollars. If you opt for the most efficient solar panel brands, you'll end up paying more upfront than if you opted for the most affordable panels. However, higher efficiency could save you more over time on your electric bills. In addition, extra products, such as solar batteries, can bump up your total well above the San Jose average.
Solar Financing Terms
For some homeowners, paying for a solar system out of pocket can be financially overwhelming. Solar loans are provided by most installers in San Jose, which can bring down, or in some cases completely eliminate, your upfront costs to make solar more accessible. You'll have to consider the long-term cost of loans, including the amount of interest you'll pay over the length of the loan. If you're only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or finding a solar loan with a low APR could reduce your costs considerably.
Solar Panel Installation Company
Finally, the company you opt for to install your solar system can play a part in determining how much it costs. San Jose's solar companies all have different labor costs and add varying upcharges to equipment. You may come across national solar installers that have lower prices because of their bigger brand name and access to bulk equipment prices, or you might see small, local installation companies offering deals or promotions to compete with those larger companies.
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 | $39,022 | 5.9 years |
| 8 kW | $2.78 | $15,594 | $52,335 | 5.7 years |
| 10 kW | $2.73 | $19,110 | $65,800 | 5.6 years |
| 12 kW | $2.68 | $22,473 | $79,419 | 5.5 years |
| 14 kW | $2.62 | $25,684 | $93,191 | 5.4 years |
| 16 kW | $2.57 | $28,741 | $107,115 | 5.3 years |
| 18 kW | $2.51 | $31,646 | $121,193 | 5.2 years |
| 20 kW | $2.46 | $34,398 | $135,423 | 5.1 years |
How to Save on Solar Panels
The solar installer you go with will affect not only your overall costs, but also the kinds of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are several important things you should consider, such as:
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a well-established certification organization for renewable energy professionals. If your solar panel installer is NABCEP-certified, it most likely has a good reputation and is qualified to install your solar system. Another way you can verify your installer's reputation is by reading reviews.
- Solar Panel Brands: Different companies have different brands and kinds of panels. If you know you want a specific brand, make sure the solar installer you're considering has it.
- Contract: Although reading through a contract can be tedious, it's important to do it thoroughly so you can make sure you understand how much the equipment and services will cost and the terms of the warranty.
- Warranty: Each company may offer different types of warranties that cover different things. A 25-year, all-inclusive warranty is the gold standard.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best Warranty Coverage
Sunpro Solar
- Industry-leading warranty coverage
- Expansive service area
- Some reported communication issues
- No leases or PPAs
EcoWatch's San Jose, CA Solar Cost FAQs
How much does it cost to install solar panels in San Jose?
The average cost of solar panels in San Jose is about $13,650 for a 5-kW system and $27,300 for a 10-kW system before the ITC, but the actual cost will depend on things like the type of solar panels you want, what size system you need and how much energy you consume.
Is cost the most important consideration when buying solar panels?
Cost is definitely one of the most important things to keep in mind when buying solar panels, but other important factors include efficiency, durability, and quality.
Is going solar worth it?
Solar panels can be a fruitful investment for most homeowners, but they might not be worth it for everyone. If your home doesn't get enough sunlight and/or your energy bills are already reasonably low, solar panels might not be for you.
What solar power system size is right for my home?
To figure out how many solar panels you need, you need to know how much energy your home requires and how much sunlight your home gets. For a general estimate, however, since each panel can typically produce about 250 to 400 watt-hours per hour, the average home will need 20 to 35 panels.
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.