Solar Panel Cost Guide in Santa Monica, CA (2023 Update)
- Santa Monica Solar Installation Cost: $5,444
- 25-Year Savings: $18,924
- Payback Period: 5.6 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in Santa Monica
We break down average solar pricing in Santa Monica.
The national average cost of solar panels is $2.66 per watt, but in Santa Monica it's 2.73 per watt. The average solar panel system size in Santa Monica is around 2.9 kilowatts, meaning a cost of about $5,446 for a solar installation, or $7,788 before the 30% federal solar tax credit is applied.
Bear in mind that the figures above are only estimates based on the average energy use of Santa Monica homeowners. The price of a solar system for your home may look different depending on factors unique to your situation, like your household energy use and solar contractor. With average savings of about $33,000 on energy bills over 20 years, many homeowners in Santa Monica find installing solar panels can be quite rewarding.
Click the button below to get connected to a vetted solar panel company in Santa Monica for a customized quote.
Solar savings over time in Santa Monica
| Year | Return on Investment |
|---|---|
| 1 years | $-4,102 |
| 3 years | $-1,418 |
| 5 years | $1,266 |
| 7 years | $3,950 |
| 9 years | $6,634 |
| 11 years | $9,318 |
| 13 years | $12,002 |
| 15 years | $14,686 |
| 17 years | $17,370 |
| 19 years | $20,055 |
| 21 years | $22,739 |
| 23 years | $25,423 |
| 25 years | $28,107 |
Top Solar Installers in Santa Monica
DIY solar panel installation is a way to cut costs, but it's an undertaking that can use up a lot of your time and energy. Hiring a solar company can make your switch to solar power much easier. Solar companies offer key benefits that can help you get the most out of your investment, like warranties, monitoring and free repairs.
If you're looking for a solar installer in Santa Monica, the EcoWatch team has put together a list of our top suggestions here:
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 Santa Monica
Factors that Affect Solar Panel Costs in Santa Monica
The cost of installing a solar system in Santa Monica can vary by more than $10,000 from home to home. Your actual cost is determined by several factors. The biggest one is your system size, and other factors include equipment choices, financing options and the solar company you choose.
Solar Equipment
The cost of solar panels varies by thousands of dollars due to a few different factors. One of the key factors is the system size, which is measured in kilowatts (kW). Solar power systems that have better efficiency or power production need 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 $2,730. The kind of 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. On the other hand, higher efficiency could save you more over time on your power bills. In addition, extra products, like solar batteries, can bring your total well above the Santa Monica average.
Solar Financing Terms
Solar panels can save you money on power bills over time, but they can also be a significant investment. That's why many Santa Monica homeowners decide to finance their solar panel systems to make paying for solar more affordable. However, the interest on solar loans also adds to your overall costs, so it's important to include that in your estimate as well. You can always bring down the total you pay in interest and sometimes even your APR by putting more money down.
Solar Panel Installation Company
The final key cost factor you should keep in mind is the installer you choose. Given the massive popularity of sustainable energy solutions in Santa Monica, you'll have plenty of options to choose from, but each comes at different price points for labor and equipment. You may come across national solar installers that have lower prices due to their larger brand name and access to bulk equipment prices, or you might see small, local installation companies offering deals or specials 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 | $39,395 | 5.8 years |
| 8 kW | $2.78 | $15,594 | $52,832 | 5.7 years |
| 10 kW | $2.73 | $19,110 | $66,422 | 5.6 years |
| 12 kW | $2.68 | $22,473 | $80,165 | 5.5 years |
| 14 kW | $2.62 | $25,684 | $94,061 | 5.4 years |
| 16 kW | $2.57 | $28,741 | $108,110 | 5.3 years |
| 18 kW | $2.51 | $31,646 | $122,311 | 5.1 years |
| 20 kW | $2.46 | $34,398 | $136,666 | 5.0 years |
How to Save on Solar Panels
The company that does your solar system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Because selecting a company can be a challenge, we have some tips to help you, such as:
- 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.
- Solar Panel Brands: The brand of solar panel you'd like to install plays a part in which company you should go with, since different companies provide different panels.
- Installation Process: One of the most important things to understand when adopting solar power is the installation process itself. Be sure to align on any details you need to know with your solar installer, such as what permits you should acquire and what the project timeline is.
- Contract: Look through the contract terms thoroughly to make sure you understand the cost breakdown, project completion timeline rebates and warranties.
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 Santa Monica, CA Solar Cost FAQs
How much does it cost to install solar panels in Santa Monica?
This is a tough question to answer exactly, because the cost depends on a variety of 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. It will be more expensive if you want extra 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 cheaper solar panels.
Is cost the most important thing to keep in mind when buying solar panels?
Cost is certainly one of the most important things to keep in mind when buying solar panels, but other important factors include efficiency, durability, and quality.
Does Santa Monica have a net metering program?
Each state has some kind of net metering programs except Tennessee, South Dakota and Alabama currently. Some states allow you to sell power back to the grid, but others just give you credit toward your future energy bills.
How often do you have to replace solar panels?
On average, solar panels can last 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.