Solar Panel Cost Guide in California, PA (2023 Update)
- California Solar Installation Cost: $12,321
- 25-Year Savings: $8,723
- Payback Period: 14.6 Years
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Updated September 15, 2023
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Average Cost of Solar Panels in California
We go over average solar pricing in California.
Although the national average of solar panels is $2.66 per watt, solar panels in California generally cost about 2.55. Using this figure, a typical 6.9-kW system would cost about $12,316 before the 30% federal solar tax credit is applied.
Remember that the numbers above are only averages. The price you'll end up paying for solar may look quite different based on your household energy needs, the type of solar system you choose, your solar contractor and more. But, once you've paid the initial cost of installation, the ROI for most homeowners is typically rewarding, with a net average savings of about $12,000 over 20 years on electricity bills.
To receive a free estimate from a vetted solar installation company in California, you can click the button below.
Solar savings over time in California
| Year | Return on Investment |
|---|---|
| 1 years | $-11,238 |
| 3 years | $-9,072 |
| 5 years | $-6,906 |
| 7 years | $-4,740 |
| 9 years | $-2,575 |
| 11 years | $-409 |
| 13 years | $1,757 |
| 15 years | $3,923 |
| 17 years | $6,089 |
| 19 years | $8,255 |
| 21 years | $10,420 |
| 23 years | $12,586 |
| 25 years | $14,752 |
Top Solar Installers in California
Installing solar panels on your own can be a stressful undertaking, which is why hiring a solar installation company is a good option for many homeowners. Another benefit of going with a solar company is that they can help you maximize your investment by cutting back on future costs of repairs and replacements because of warranties and informing you of local incentives you can take advantage of.
Working with a vetted solar company can make going solar easier. Here are our recommendations:
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 California
Factors that Affect Solar Panel Costs in California
There are many factors that can play into your installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that installs your solar system.
Solar Equipment
When it comes to estimating the cost 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 figure out by looking at past electricity bills. Your total cost can increase by around $2,550 for each additional kilowatt you need. The kind of solar equipment you choose can bring your price up or down 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 electric bills. Additionally, add-on products, like solar batteries, can bump up your total well above the California average.
Solar Financing Terms
Many homeowners find the average cost of solar in California to be prohibitively costly, even if the investment pays off over time. Fortunately, nearly every solar installer in the area offers financing options. Solar loans remarkably decrease upfront costs for most homeowners, but they also lead to paying more over time because of interest. When considering your overall cost, you should also calculate the interest you'll pay if you go with a solar loan. Also, paying more on your down payment can reduce the total interest paid over time.
Solar Panel Installation Company
The remaining significant cost factor you should keep in mind is the installer you choose. Given the growing popularity of clean energy solutions in California, you'll have many options to choose from, but each comes at varying price points for labor and equipment. Additionally, some companies in California have more knowledge about local solar incentives and can help you make good use of additional rebates or tax exemptions. Though, they may charge more for walking you through the whole process. Even if they cost more upfront, they could end up saving you 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 | $2.65 | $11,138 | $7,154 | 15.2 years |
| 8 kW | $2.60 | $14,566 | $9,824 | 14.9 years |
| 10 kW | $2.55 | $17,850 | $12,638 | 14.6 years |
| 12 kW | $2.50 | $20,992 | $15,594 | 14.3 years |
| 14 kW | $2.45 | $23,990 | $18,692 | 14.1 years |
| 16 kW | $2.40 | $26,846 | $21,934 | 13.8 years |
| 18 kW | $2.35 | $29,560 | $25,318 | 13.5 years |
| 20 kW | $2.29 | $32,130 | $28,845 | 13.2 years |
How to Save on Solar Panels
There are many solar installers to choose from, all of which offer different warranties, solar panel brands and price points. To help you find the right company for you, here are some tips to keep in mind:
- Reputation: Solar installers that have great reviews from their customers and that have been operating for many years most likely offer good-quality solar panel installation and expertise.
- Warranty: An all-inclusive, long-term warranty can help keep your solar system running smoothly and save you money on part replacement and repairs.
- Contract: It's important to read your solar installer's contract well to understand what services they will provide, what the warranty covers and what you can expect about the project timeline.
- Solar Panel Brands: Each solar panel brand and type offers varying levels of quality, durability and efficiency. They will come at different prices as well. The company you choose affects which solar panel brands you have access to.
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 California, PA Solar Cost FAQs
What is the average cost of installing solar panels in California?
The average cost of solar panels in California is about $12,750 for a 5-kW system and $25,500 for a 10-kW system before the ITC, but the actual cost will depend on stuff like the kind of solar panels you want, what size system you need and how much energy you consume.
Is it better to lease or buy solar panels in California?
Leasing solar panels can be an option if you are unable to pay upfront or get a solar loan, but since you don't own the system, you don't have access to 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 savings from going solar.
How much can I save on energy bills after installing solar panels?
Solar panels can potentially eliminate your electricity bills depending on where you're located 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 $609.75 per year.
How many solar panels should I get to power my home?
To figure out what solar panel system size you need, you should find out how much energy your home needs and how much sunlight your home gets. For a general estimate, however, since each panel can usually produce about 250 to 400 watt-hours per hour, the average house will need 20 to 35 panels.
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.