Solar Panel Cost Guide in California, MD (2024 Update)
- California Solar Installation Cost: $13,029
- 25-Year Savings: $9,769
- Payback Period: 16.3 Years
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Average Cost of Solar Panels in California
Find out what the average cost of solar panel installation is in California.
Currently, the national average cost of solar panels is $2.66 per watt. However, in California, the typical cost of a solar system is 4 per watt.Since a 5.3-kW system is needed to cover the energy needs of a typical home in California, the average price of going solar will be about $13,029 after claiming the federal solar tax credit of 0.
Bear in mind that the figures above are only estimates based on the average energy use of California homeowners. The price of a solar system for your home may be different depending on factors unique to you, like your household energy use and solar contractor.Even with the high initial cost, the average California homeowner can save around $14,000 on their electricity bills over 20 years, which is one of the benefits of solar.
To get a free quote from a pre-vetted solar company in California, you can click the button below.
Solar savings over time in California
| Year | Return on Investment |
|---|---|
| 1 years | $-11,695 |
| 3 years | $-9,026 |
| 5 years | $-6,357 |
| 7 years | $-3,688 |
| 9 years | $-1,019 |
| 11 years | $1,651 |
| 13 years | $4,320 |
| 15 years | $6,989 |
| 17 years | $9,658 |
| 19 years | $12,327 |
| 21 years | $14,996 |
| 23 years | $17,665 |
| 25 years | $20,334 |
Top Solar Installers in California
When making the switch to solar, many homeowners choose to go with a solar company since putting up solar panels yourself can be a challenging project. Since solar panels are exposed to temperature swings and extreme weather, warranties and repairs from your solar company can help you get the most out of your investment in solar panels by avoiding potential costs down the line.
You can get a free estimate from a local solar installer on how much solar panels could cost for your home. Here are some nearby:
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Solar Veteran
Trinity Solar
- Many financing options
- Family-owned and -operated
- Makes charitable contributions
- Limited service area
- Relatively short workmanship warranty
Best Technology
Tesla Energy
- 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 California
Factors that Affect Solar Panel Costs in California
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 California: solar equipment and system size, financing options and the solar installation company you choose. We’ll go over each of these briefly below.
Solar Equipment
The size of the solar panel system you need, which is measured in kilowatts, is the most important cost factor to consider. For every additional kilowatt you need, you can expect your total to increase by about $3,540. 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 in the long run on your power bills. Additionally, add-on products, such as solar batteries, can bump up your total well above the California average.
Solar Financing Terms
For some homeowners, paying for solar panels out of pocket can be a challenge. Solar loans are offered by most installers in California, which can reduce, or in some cases eliminate, your upfront costs to make solar more affordable.When figuring 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 installer you hire to handle your switch to renewable energy can have an effect on your total costs. There are about 3 solar panel companies in California, and each can charge varying amounts for labor and equipment.Additionally, some companies in California are more knowledgeable about local solar incentives and can help you make good use of additional rebates or tax exemptions. However, they may charge more for that service. Even if they cost more upfront, they could help you save more money in the long run.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.68 | $15,463 | $7,318 | 17.0 years |
| 8 kW | $3.61 | $20,220 | $10,154 | 16.6 years |
| 10 kW | $3.54 | $24,780 | $13,189 | 16.3 years |
| 12 kW | $3.47 | $29,141 | $16,421 | 16.0 years |
| 14 kW | $3.40 | $33,304 | $19,852 | 15.7 years |
| 16 kW | $3.33 | $37,269 | $23,481 | 15.3 years |
| 18 kW | $3.26 | $41,036 | $27,308 | 15.0 years |
| 20 kW | $3.19 | $44,604 | $31,333 | 14.7 years |
How to Save on Solar Panels
The solar company you choose will impact not only your total costs, but also the kinds of solar panel brands, warranties, and other equipment you can get. When choosing a solar company, there are a few important things you should take into account, such as:
- Reputation: The North American Board of Certified Energy Practitioners (NABCEP) is a respected certification organization for sustainable energy professionals. If your solar panel installer is NABCEP-certified, it likely has a good reputation and is qualified to do the job well. Another way you can research your installer’s reputation is by reading reviews.
- Warranty: If you’re worried about the endurance of your solar system, checking if your installer offers a 25-year, all-inclusive warranty can help put you at ease.
- Solar Panel Brands: Each solar panel brand and type offers varying levels of quality, durability and efficiency. They will come at different costs as well. The company you choose plays a role in which solar panel brands you have access to.
- Contract: It’s important to look over your solar installer’s contract carefully to understand what services they will provide, what the warranty covers and what expectations you should have about your solar system’s energy production.
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Solar Veteran
Trinity Solar
- Many financing options
- Family-owned and -operated
- Makes charitable contributions
- Limited service area
- Relatively short workmanship warranty
Best Technology
Tesla Energy
- 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 California, MD Solar Cost FAQs
How much does it cost to install solar panels in California?
This is a difficult question to answer precisely, because the cost depends on a few different factors. Broadly speaking, it costs about $17,700 for a 5-kW system and $35,400 for a 10-kW system after the ITC is applied. You can expect to pay more if you want extra solar equipment or more efficient panels, or if you have higher-than-average energy consumption. On the flip side, you can spend less if you want a smaller solar panel system or less expensive solar panels.
Can you get solar panels for free in California?
You can’t get solar panels for free in California. However, you may still be able to afford them on a lower budget. You can lease solar panels for a low upfront cost or, if you’d rather own your solar panels, you can finance them with a solar loan.
How much can I save on energy 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 $759.37 per year.
How long do solar panels last in California?
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 larger 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.