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Alexandra Cousteau
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With well over one million solar installations throughout the state, California has long been a leader in the U.S. solar industry. Recent legislation mandating that all new homes in the state must be built with solar panels likely leaves residents wondering about the cost of solar panels in California.

With ample sunshine, unnaturally high energy costs, ambitious climate goals and progressive leadership, California is ripe with solar potential. The preexisting availability of local solar providers in California allows solar customers the valuable opportunity to gather a large number of competing quotes, sometimes generating several thousand dollars worth of savings in the process.

You can start getting free, no-obligation quotes from top solar companies in your area by filling out the form below.

How Much Do Solar Panels Cost in California?

As of 2021, our market research and data from top brands shows the average cost of solar panels in California is around $2.73 per watt. This means a 5-kW system would cost around $10,101 after the federal solar tax credit is applied.

Here's how that price looks when applied to other system sizes:

Size of Solar Panel SystemCalifornia Solar Panel CostCost After Federal Tax Credit
5kW$13,650$10,101
6kW$16,380$12,121
7kW$19,110$14,141
8kW$21,840$16,162
9kW$24,570$18,182
10kW$27,300$20,202

It may surprise some readers that the cost of solar in California isn't as low as in many other states, but keep in mind that the real value of solar comes relative to the price of energy in the state (and California's is the highest in the country). All in all, solar energy provides excellent value to California residents.

Knowing the average solar panel cost in California is $2.73 per watt, a savvy solar customer can compare quotes against this figure to ensure they receive the best value possible. You may find that popular national brands don't have the lowest prices.

What Determines Solar Panel Prices?

The cost of solar panel installations in California largely depends on a homeowner's location and energy needs. In most cases, areas with higher local electricity rates offer more value from solar panels. Here are other factors that influence installation costs.

Solar Equipment Costs

Similar to most modern technology, solar products and system costs vary greatly based on their quality, scale and included features. Some customers may be satisfied with a modest array of affordable solar panels and inverters, while others may prefer a system with premium panels, full-home backup power and an electric vehicle charger.

Solar Financing

The overall cost of solar depends significantly on whether a customer chooses to finance or purchase their system in cash. Paying upfront provides the best return on investment and fastest solar panel payback period, as there are no fees or interest charges associated with it.

The two most common solar financing options include taking out a loan and leasing solar panels. If paying with a solar loan, be careful of high interest rates and early repayment penalties and other fees. Homeowners who lease their panels or sign power purchase agreements (PPAs) enjoy little to no upfront costs, but solar leases provide the least amount of overall value.

Solar Installation Costs

With nearly 2,500 solar companies throughout California, prices can range significantly based on the installer. Larger solar providers like Sunrun offer the advantage of solar leases and quick installations. Local providers looking to get a leg up on their competition may offer lower prices to undercut the biggest names in the industry.

Solar Panel Cost After Incentives, Rebates and Tax Credits

California's progressive leadership has done good work in spurring investment in renewable energy. All homeowners are eligible for the federal solar tax credit, and the state offers several incentive programs and solar rebates aimed at further increasing access to reliable, affordable solar panels. However, given the state's ambitious climate targets and the energy burden on most of its population, it could probably do more.

Let's take a closer look at the solar incentives available to California residents.

Federal Solar Tax Credit

All California residents are eligible for the federal solar investment tax credit, or ITC, for installing PV solar panels and any other eligible solar equipment. Any reputable solar installer will assist in the process of claiming the ITC on your federal tax returns. Claiming the ITC deducts 26% of the total cost of your solar installation from the taxes you owe.

To be eligible for the solar tax credit, homeowners must own the solar energy system, either having paid for it in cash or by taking out a solar loan. Homeowners who lease solar panels are not eligible to claim the ITC.

California Net Metering Programs

Net energy metering (NEM), or net metering, allows customers to feed the surplus energy generated by their solar panels back to their local power grid in exchange for energy credits from their utility company. As most solar energy systems generate more energy than can be used during the day, this incentive provides homeowners additional savings on their electricity bills and lowers the demand for grid-supplied electricity in the region.

California currently offers a statewide net metering incentive for residents generating electricity with solar panels. Exact credit values will vary based on your utility company.

California Solar Tax Incentives and Rebate Programs

There are also a handful of California solar incentives to help lower the cost of solar for residents. Some of these include rebates, loans and property tax exemptions. Though any quality solar company will be knowledgeable about the local incentives in your area, it's always worth doing some independent research. We recommend using the DSIRE solar incentive database to find money-saving opportunities in your area.

FAQ: Average Cost of Solar Panels in California

Is it worth going solar in California?

One of the sunniest climates in the country makes California one of the best states in the U.S. for generating energy with solar power. The ample sunshine, generous net metering policies and pre-existing availability of solar installers provide a great deal of value for solar customers in California.

How much does it cost to install solar panels in California?

As of 2021, the average cost of solar panels in California is $2.73 per watt. This means a 5-kW system would cost around $10,100 after the solar tax credit. Heavy investment in renewable energy has lowered the cost of solar in the state significantly, and this cost offers great value relative to high local energy prices. The best way to assess how much solar would cost you is to consult local providers near you for free estimates.

Do solar panels increase home value in California?

Solar panels increase home value everywhere, but mostly in areas with generous net metering policies and solar rebates. As such, the areas in California where solar panels increase home value the most correspond with the areas that have the most solar-friendly policies. It's worth noting that even if your home's value increases, California has laws in place to ensure your property taxes don't rise as the result of a solar installation.

How much do solar panels cost for a 2,500-square-foot house?

Though knowing the size of a house is helpful in determining how many solar panels could fit on its roof, the energy use of the house is a more important factor in determining solar panel cost in California. The higher the energy costs in your home, the greater your cost of solar will be.

Karsten Neumeister is a writer and renewable energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the energy sector of New Orleans, focusing on renewable energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.


After using a turbidity tube to test for water quality clarity, Alexandra Cousteau returns water to the river. She joined Ottawa Riverkeeper measuring water quality near Hull Marina.

Since arriving in Canada on Sept. 11 to film three documentaries about the Ottawa river as part of River Mission, a joint initiative between Ottawa Riverkeeper, Blue Legacy International and the de Gaspe Beaubien Foundation, I have kayaked, whitewater rafted and canoed on the river. As the source of the region's tap water, I have drunk from the river and seen first hand the watershed's sewage plants as they clean and return water to the river.

As closely as I've gotten to know the Ottawa River during this expedition, I have gotten to know the people that are its champions even better—people like Ottawa Riverkeeper Meredith Brown, Ambroise Lycke, director of the Temiscamingue watershed and Algonquin elder Skip Ross, all of whom fight to give this river a voice.

While we've borne witness to stories of empowered and impassioned individuals advocating for the river, we have also discovered there is a dramatic lack of accessible information and technology tools to support public action and understanding of the state of our water.

All that I have seen and heard here truly underscores the importance of knowing the state of our water—is it safe to swim in, can we fish in it, can we drink it. Information about water quality is the most critical tool we have to empower people to reclaim and restore their water. And yet, time after time, I see how hard it is for people to obtain and make sense of that information.

Ultimately this is a river that belongs to the communities of people that enjoy and rely upon it every day. Hearing about their concerns for the river and their visions of a better future has truly reinforced my belief that we are all stewards of the quality of our own water. But to bring about the change we seek, we need the right tools, technology, innovation, access to water quality information, public accountability and openness.

Water advocacy on every level starts with one question: how well do you know the state of your water?

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I was awoken today by the sound of raindrops on my windowsill. Sitting down at my desk, with the peaceful patter of water helping me to collect my thoughts and prepare for the day, I was stunned to read a report that enumerates a truth I already knew all too well.

Tuesday, American Rivers released its annual America's Most Endangered Rivers report. On the list, there are rivers under threat from natural gas development, the construction of new dams and reservoirs, mountaintop removal for coal mining and excessive water withdrawals. Looking over these threats, it is clear that what is fundamentally at risk is the quality and quantity of our freshwater—water that we can swim in, drink, and fish from—water that is there when and where we need it.

And at the top of the list this year is a river that continues to be in serious danger from pollution—a threat that is only heightened as members of Congress zealously crusade to dismantle and rollback key provisions of the Clean Water Act, the single most important piece of environmental legislation designed to protect our freshwater. The Potomac River, which flows through our nation's capital from the storied depths of our country's past, is number 1 on the list of America's Most Endangered Rivers of 2012.

In some ways, I am not surprised. In 1965 President Lyndon B. Johnson called the Potomac "a national disgrace" because the river was a cesspool of sewage and industrial chemicals. Yet, despite how disheartening this observation may have been, it served as a much-needed wake-up call for our country. In fact, his remark was a major catalyst—among other observations like it concerning rivers across the U.S.—for the passage of the Clean Water Act of 1972. And with the passage of this groundbreaking legislation, we witnessed an unprecedented resurgence of the Potomac and rivers across the country over the last few decades.

But the fight to restore our rivers clearly wasn't over. In 2010, rounding out our 17,100 mile journey across North America, I brought my Blue Legacy crew to the Potomac River to reconnect with the watershed many of us call home. Yet, the message we took back from our final expedition stop was not one of hope and optimism—but rather, a message of uncertainty and ongoing threat.

While advancements have been made to partially restore its health and preserve the integrity of its rich natural habitat, the Potomac River is still threatened on a number of fronts. In our film, Our Nation's River: A System on the Edge, we investigate the ongoing challenges the river faces, with experts including: Potomac Riverkeeper, Ed Merrifield; Sandra Postel, founder of the Global Water Policy Project and National Geographic Freshwater Fellow; Chuck Fox, from the EPA; and The Nature Conservancy's Stephanie Flack. From these interviews, it is clear that the river and its tributaries—and the people and communities that depend on them—are still in jeopardy, because, today, the Potomac River barely sits on the edge of recovery.

The worst part about the situation is that, in spite of what scientists and water conservationists are telling us about the delicate state of the Potomac, Congress is actively pursuing legislation that will reduce federal environmental oversight of our lakes, rivers, and streams. Outside magazine reported on some specific bills that are meant to undermine the Clean Water Act that has protected our waters for so long:

    • H.R. 2018: Clean Water Cooperative Federalism Act of 2011—This bill would amend the Federal Water Pollution Control Act to preserve the authority of each State to make determinations relating to the State's water quality standards, and for other purposes. The bill, which has already passed through the House, also calls for a number of limits to the U.S. Environmental Protection Agency (EPA), in terms of its ability to revise or introduce water quality standards for a pollutant (unless the state concurs with the EPA administrator's opinion), and also would shorten the window during which the U.S. Fish and Wildlife Service could comment on dredge and fill permits.
    • H.R. 872: The Reducing Regulatory Burdens Act—This bill would amend the Federal Insecticide, Fungicide, and Rodenticide Act and the Federal Water Pollution Control Act to clarify Congressional intent regarding the regulation of the use of pesticides in or near navigable waters, and for other purposes. The bill, which has also passed the House, would make it so parties are no longer required to seek a permit before using a pesticide, even if that pesticide could enter a waterway, as long as the pesticide is authorized for sale, distribution, or use under FIFRA.
    • H.R. 4153: Chesapeake Bay Program Reauthorization and Improvement Act—This bill, spearheaded by Congressman Bob Goodlatte, aims to support efforts to reduce pollution of the Chesapeake Bay watershed. But, in reality, the bill would limit what Congressman Goodlatte considers the EPA's overreaching authority by giving states, rather than the federal government, the ability to set acceptable levels of pollution entering the Chesapeake Bay watershed.

    So, what is there left to do? Should we throw-up our hands in the air in defeat, and let the devastation to our "nation's river" continue unabated—not to mention the hundreds of lakes, rivers and tributaries across the country which are still under threat? I am writing today to emphatically say NO! We all have a voice, and together we can make a positive difference.

    Help protect America's most endangered river and rivers nationwide—tell your local government official why you care about the Potomac River, and why it is so important that the Clean Water Act is protected. But why stop there? Rivers across America need our support. All of the rivers on this list—and the hundreds that did not make it this year—represent a front line in the struggle against environmental de-regulation. Make no mistake, this water belongs to the people and the communities we live in, and we will not give up our right to protect our water without a fight. We need strong federal oversight to make sure these laws are followed.

    Listening to the sound of raindrops outside my window, I am reminded of a simple, yet powerful truth. Each one of those drops has begun an incredible journey. Sliding off a leaf, it lands in a puddle on the street, and flows into the storm drain. And at the end of the pipe, it will become one with the Potomac River and eventually, as it re-enters the water cycle once again, part of each one of us. The waters of our rivers course through our veins. So, for the sake of our health, and the health of our children, it's time we did something to stop the degradation of our rivers—of the Potomac—because we never want to see our nation's river—or any of the rivers that run through our communities—on the most endangered list ever again.

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