Solar Panel Cost Guide in California, MD (2023 Update)
- California Solar Installation Cost: $10,199
- 25-Year Savings: $9,765
- Payback Period: 12.8 Years
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Updated May 04, 2023
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Average Cost of Solar Panels in California
Find out what the average cost of solar panel installation is in California.
In California, solar panels cost about 2.77 per watt on average. Using this figure, a typical 5.3-kW system would cost about $10,199 before the 30% federal solar tax credit is applied.
These figures are only averages, and your own solar costs will most likely vary based on your specific situation and what company you go with. Even with the significant initial cost, the average California homeowner can save about $14,000 on their energy bills over 20 years, which is one of the positives of solar.
Click the button below to get connected to a vetted solar panel company in your area for a customized quote.
Solar savings over time in California
| Year | Return on Investment |
|---|---|
| 1 years | $-9,401 |
| 3 years | $-7,803 |
| 5 years | $-6,206 |
| 7 years | $-4,609 |
| 9 years | $-3,012 |
| 11 years | $-1,415 |
| 13 years | $182 |
| 15 years | $1,779 |
| 17 years | $3,376 |
| 19 years | $4,974 |
| 21 years | $6,571 |
| 23 years | $8,168 |
| 25 years | $9,765 |
Top Solar Installers in California
When going solar, many homeowners choose to use a solar installation company since putting up a solar system yourself can be a time-consuming project. Plus, if you're not certain what brand of solar panels and equipment you need, a solar expert can help you figure that out after a site survey and consultation.
If you'd like to switch to solar energy but still aren't certain which solar company to go with, here are our suggestions for providers nearby:
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
See all of the solar companies in California
Factors that Affect Solar Panel Costs in California
There are a number of criteria that can play into your solar panel installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that does the installation.
Solar Equipment
The cost of solar panel systems varies by thousands of dollars due to some different factors. One of the most significant factors is the system size, which is measured in kilowatts (kW). Solar power systems that have better efficiency or power generation need better technology and/or more equipment, both of which can raise costs. For each additional kilowatt you need, your cost can go up by about $2,770. There are several different solar panel brands and the one you pick also affects the cost. Typically, the brands that offer higher efficiency tend to also cost more. In addition, the type of equipment you choose can affect your total cost. If you just need panels, your system will be much less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
Many homeowners find the average cost of solar in California to be prohibitively steep, even if the investment pays off over time. Fortunately, almost every solar company in the area provides financing options. Solar loans substantially decrease upfront costs in most cases, but they also result in a higher cost over time because of interest. It's a good idea to factor the interest you'll pay in your final cost estimate. If you can afford to put more money down upfront, you can reduce your total costs and how long it'll take to pay off the loan.
Solar Panel Installation Company
The solar panel installer you select will affect your total cost to adopt solar energy. Different companies will bill different amounts for the equipment and labor. You may notice national solar installers that have lower prices due to their bigger brand name and access to bulk 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 | $2.88 | $12,099 | $10,682 | 13.3 years |
| 8 kW | $2.83 | $15,822 | $14,553 | 13.0 years |
| 10 kW | $2.77 | $19,390 | $18,579 | 12.8 years |
| 12 kW | $2.71 | $22,803 | $22,760 | 12.5 years |
| 14 kW | $2.66 | $26,060 | $27,096 | 12.3 years |
| 16 kW | $2.60 | $29,163 | $31,587 | 12.0 years |
| 18 kW | $2.55 | $32,110 | $36,234 | 11.7 years |
| 20 kW | $2.49 | $34,902 | $41,035 | 11.5 years |
How to Save on Solar Panels
Since the brand of solar panels and the company you choose has an impact on your costs and your system's durability and efficiency, it's important to select the right ones for you. Here are some tips to keep in mind to help with your decision:
- Installation Process: When going solar, it's important to keep an open line of communication with your solar installer. See to it that you understand how the installation process will go and the completion timeline.
- Solar Panel Brands: Not all solar companies offer the same brands of solar panels, so the brand and type of panel you want can play a substantial role in the company you opt for.
- Contract: When looking through your solar company's contract, ask for clarification about any terms you're not sure of and be sure you understand what happens in scenarios such as a system component breaking or the company going out of business.
- Warranty: An all-inclusive, long-term warranty can help keep your solar system running for years to come and save you money on repairs and maintenance.
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
EcoWatch's California, MD Solar Cost FAQs
How much does it cost to install solar panels in California?
The average cost of solar panels in California is about $13,850 for a 5-kW system and $27,700 for a 10-kW system before the ITC, but the actual cost will depend on certain factors like the type of solar panels you want, what size system you need and how much energy you use.
Should I lease or buy solar panels in California?
Leasing solar panels can be an option if you can't afford to pay upfront or secure a solar loan, but since you don't own the system, you don't have access to many solar incentives. Also your property value won't increase, so you'll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most savings from going solar.
Can solar panels completely eradicate my electricity bills?
Solar panels can potentially eliminate your electricity bills depending on your location 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 $759.37 per year.
How often do you have to replace solar panels?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency goes down by about 0.8% each year. You can choose to replace them sooner if you want to maintain a larger level 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.