Solar Panel Cost Guide in San Luis Obispo, CA (Mar 2023)

  • San Luis Obispo Solar Installation Cost: $5,504
  • 25-Year Savings: $20,827
  • Payback Period: 5.2 Years

See cost of a solar system near you:

By EcoWatch Local Advisors

Data Analysis: James Savino

Ranking Methodology: Karsten Neumeister

Updated March 14, 2023

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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 San Luis Obispo

Let's have a look at the average cost of solar in San Luis Obispo.

In San Luis Obispo, solar panels cost about 2.73 per watt on average. The average San Luis Obispo homeowner needs a 2.9-kilowatt system, which would cost about $5,504 with the federal tax credit, or $7,871 before the 30% tax credit is applied.

Remember that the numbers above are only averages. The price you'll pay for solar will differ based on your household energy needs, the type of solar panels you want, your solar contractor and more. Many homeowners find adopting solar power is a sound investment. The average homeowner in San Luis Obispo can save about $35,000 on their electricity bills over 20 years.

Click the button below to get connected to a reputable solar installer in San Luis Obispo for a personalized quote.

Solar savings over time in San Luis Obispo

Year Return on Investment
1 years $-4,450
3 years $-2,344
5 years $-237
7 years $1,869
9 years $3,975
11 years $6,082
13 years $8,188
15 years $10,295
17 years $12,401
19 years $14,508
21 years $16,614
23 years $18,721
25 years $20,827

Top Solar Installers in San Luis Obispo

Do-it-yourself solar panel installation is a way to cut costs, but it's an undertaking that can take a lot of hard work. Hiring a solar company can make your switch to solar power much easier. A solar installer can also help save you money in the long run by offering warranties, repairs and part replacements.

If you'd like to start using solar energy but still aren't sure which solar system installer to go with, here are our recommendations for providers in San Luis Obispo:

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 Technology

Tesla Energy

★★★★★
4.5

  • Price-match guarantee
  • Sleek, efficient, and durable solar panels
  • Best solar battery on the market
  • Some reported issues with customer service
  • Customer service varies by local dealer

See all of the solar companies in San Luis Obispo

Factors that Affect Solar Panel Costs in San Luis Obispo

For many San Luis Obispo homeowners, the decision to install a solar energy system comes down to cost. However, the range of solar installation costs can be quite wide in San Luis Obispo, with typical prices between $20,000 to $40,000. There are several factors that greatly influence the price you'll pay, which we'll go over below.

Solar Equipment

One of the most significant 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 consumes, the larger your system will likely need to be. You can expect to spend around $2,730 per kilowatt in San Luis Obispo. There are many different solar panel brands and the one you pick also changes the cost. Generally, the brands that have better efficiency tend to also cost more. Additionally, the type of equipment you want to install can affect your total cost. If you only need panels, your system will be much less expensive than if you also need solar batteries or an electric vehicle charger.

Solar Financing Terms

Solar panels can save you money on utility bills over many years, but they can also be a significant investment. That's why many San Luis Obispo homeowners choose to finance their solar panel systems to make going solar more affordable. However, the interest on solar loans also adds to your overall costs, so it's crucial to take that into consideration as well. You can always bring down the total you pay in interest and sometimes even your APR by making a larger down payment.

Solar Panel Installation Company

A final consideration when trying to figure out the cost of solar for your home or business in San Luis Obispo is the company you choose to install your solar panel system. Similar to choosing a company to build a deck or pool, for instance, you'll have many options for solar installers that offer a range of services at different price points. Companies that only sell products with high efficiency and therefore a higher price point — 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 find a company that offers the products, warranties and services you're looking for and also fit into 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 $2.84 $11,925 $43,009 5.4 years
8 kW $2.78 $15,594 $57,651 5.3 years
10 kW $2.73 $19,110 $72,446 5.2 years
12 kW $2.68 $22,473 $87,394 5.1 years
14 kW $2.62 $25,684 $102,494 5.0 years
16 kW $2.57 $28,741 $117,748 4.9 years
18 kW $2.51 $31,646 $133,154 4.8 years
20 kW $2.46 $34,398 $148,714 4.7 years

How to Save on Solar Panels

There are numerous companies to choose from in San Luis Obispo, and some homeowners feel overwhelmed considering their options. Choosing the right company for you can be tough, so here are some tips to help you decide:

  • Contract: It's important to read through your solar installer's contract closely to understand what services they will provide, what the warranty covers and what you can expect about the installation process.
  • Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a respected certification organization for clean energy professionals. If your solar panel installer is NABCEP-certified, it 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: Each solar panel brand and type has varying levels of quality, durability and efficiency. They will come at different prices as well. The company you choose has an impact on which solar panel brands you have access to.
  • Warranty: A high-quality company rises above other companies by offering the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.

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 Technology

Tesla Energy

★★★★★
4.5

  • Price-match guarantee
  • Sleek, efficient, and durable solar panels
  • Best solar battery on the market
  • Some reported issues with customer service
  • Customer service varies by local dealer

EcoWatch's San Luis Obispo, CA Solar Cost FAQs

What is the average cost of installing solar panels in San Luis Obispo?

This is a tough question to answer precisely, because the cost depends on many factors. Generally 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 other 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 opt for a smaller solar panel system or less expensive solar panels.

Is cost the most important consideration when buying solar panels?

Cost is without a doubt one of the most important things to bear in mind when buying solar panels, but other important factors include efficiency, durability, and quality.

How much can I save on power bills after switching to solar?

Solar panels can potentially eliminate your electricity bills depending on where you're located and how much sunlight your home gets. Even if it doesn't get rid of them completely, you can save a lot of money on your bills, about $1,831.12 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 needs and the average daily sunlight your roof gets. You can 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 install 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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