Solar Panel Cost Guide in California, MO (2023 Update)
- California Solar Installation Cost: $13,066
- 25-Year Savings: $19,550
- Payback Period: 10.0 Years
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Updated September 15, 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.
The national average cost of solar panels is $2.66 per watt, but in California it's 2.59 per watt. The average California homeowner needs a 7.2-kilowatt system, which would cost about $13,072 with the federal tax credit, or $18,693 before the 30% tax credit is applied.
Keep in mind that the numbers above are only averages. The price you'll end up paying for solar may vary based on your household energy use, the type of solar panels you want, your solar contractor and more. Many homeowners find going solar is a rewarding investment. The average homeowner in California can save about $17,000 on their energy bills over 20 years.
To calculate your potential ROI and connect with a local solar expert, click the button below.
Solar savings over time in California
| Year | Return on Investment |
|---|---|
| 1 years | $-11,775 |
| 3 years | $-9,194 |
| 5 years | $-6,613 |
| 7 years | $-4,032 |
| 9 years | $-1,450 |
| 11 years | $1,131 |
| 13 years | $3,712 |
| 15 years | $6,293 |
| 17 years | $8,874 |
| 19 years | $11,455 |
| 21 years | $14,036 |
| 23 years | $16,617 |
| 25 years | $19,199 |
Top Solar Installers in California
Although you can install solar panels by yourself, it takes extra time and handiness. That's why most homeowners choose to hire a solar panel installer. Plus, if you're not certain what brand of solar panels and equipment you need, a solar company can help you figure that out after a site survey and consultation.
There are a number of licensed solar professionals that can take care of your solar installation project. Here are our suggestions:
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
See all of the solar companies in California
Factors that Affect Solar Panel Costs in California
Cost is often one of the most important factors for homeowners considering investing in solar. There are a few key factors that determine your overall 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
When it comes to estimating the price of a solar panel system in California, one of the most important factors is the size of the system you need. Solar systems are sized by kilowatts (kW) and are chiefly based on your home's energy consumption, which you can determine by looking at past power bills. Your total cost can increase by about $2,590 for each additional kilowatt you need. There are a lot of different solar panel brands and the one you pick also affects the cost. In general, the brands that have better efficiency tend to also cost more. Plus, the type of equipment you choose can affect your total cost. If you just need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
For some homeowners, paying for solar out of pocket can be a challenge. Solar loans are provided by most installers in California, which can lower, or in some cases completely 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 opt for a solar loan. Also, paying more upfront can lower the total interest paid over time.
Solar Panel Installation Company
The solar installer you go with to handle your switch to sustainable energy can play a part in your total costs. There are about 3 solar installation companies in California, and each can charge varying amounts for labor and equipment. The size of the company sometimes plays the most significant role in the cost of installation. Larger national companies, like SunPro and Sunrun, often have lower pricing because they have more resources and better pricing. Smaller local companies might be more costly, but they can sometimes have better customer service and more customization options, and the occasional sale or promotion can bring their pricing down to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.69 | $11,313 | $15,842 | 10.4 years |
| 8 kW | $2.64 | $14,794 | $21,412 | 10.2 years |
| 10 kW | $2.59 | $18,130 | $27,128 | 10.0 years |
| 12 kW | $2.54 | $21,321 | $32,989 | 9.8 years |
| 14 kW | $2.49 | $24,367 | $38,994 | 9.6 years |
| 16 kW | $2.43 | $27,268 | $45,145 | 9.4 years |
| 18 kW | $2.38 | $30,023 | $51,441 | 9.2 years |
| 20 kW | $2.33 | $32,634 | $57,882 | 9.0 years |
How to Save on Solar Panels
The solar panel company you opt for will be a major factor in determining not only your total costs, but also the kinds of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are some important things you should consider, including:
- Reputation: Long-running companies likely have a good reputation. This is important because it ensures that it will not only see your solar project through, but will also provide quality aftercare and customer service, such as part repairs and replacements.
- Contract: Before signing a contract with a solar installer, make sure you read it through completely so you understand the terms. Also, ask questions if you're not certain about some of the terms, such as what the warranty covers and if there are any guarantees about energy production.
- Solar Panel Brands: The kind of solar panel you want to get plays a role in which installer you should choose, since different companies have different panels.
- Warranty: A comprehensive, long-term warranty can help keep your solar panel system running for years to come and save you money on part replacement and repairs.
Best Solar Financing
Blue Raven Solar
- Industry-leading in-house financing
- Competitive pricing
- Excellent reputation
- Doesn't offer solar batteries
EcoWatch's California, MO Solar Cost FAQs
How much does it cost to install solar panels in California?
This is a hard question to answer precisely, because the cost depends on a few different factors. Generally speaking, it costs about $12,950 for a 5-kW system and $25,900 for a 10-kW system after the ITC is applied. You can expect to pay more if you want additional solar equipment or more efficient panels, or if you have above-average energy needs. On the other hand, you can spend less if you opt for a smaller solar panel system or less expensive solar panels.
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 get a solar loan, but since you don't own the system, you can't take advantage of many solar incentives. Also your home 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 financial benefits from going solar.
Can you sell solar power back to the grid in California?
Most states have net metering programs of some kind. Through these, you can either receive compensation for the extra power your system produces or or receive credits to put toward future utility bills. Currently there are just three states that don't have any net metering laws: Alabama, Tennessee and South Dakota.
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 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.