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The first photograph of the Bornean Rajah scops owl in the wild. Smithsonian Migratory Bird Center

During a bird evolution study on the island of Borneo in May of 2016, a research team discovered an owl that hadn't been seen in the wild since 1892. Quickly grabbing their cameras, the researchers captured the first-ever photos of the rare bird, identifying it as the rare Bornean subspecies of the Rajah scops owl, native to southeast Asia.

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A new climate study finds that consuming "less-carbon polluting meats" like chicken may not be a sustainable replacement to beef. achayakorn lotongkum / iStock / Getty Images Plus

Curbing the world's appetite for meat is necessary to combat the climate crisis, but global meat consumption is on the rise.

Beef cattle have an outsized environmental impact because they belch methane, a potent greenhouse gas. In total, they account for 3.7 percent of the United States' total greenhouse gas emissions, and nearly half of all agricultural emissions, Inside Climate News reported. To replace beef, some environmentalists and scientists have suggested choosing chicken instead, which produces significantly lower greenhouse gas emissions.

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zstockphotos / iStock / Getty Images

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.

Nestlé has been removing water from the San Bernardino National Forest in California. The Story of Stuff Project / YouTube

California water officials have accused Nestlé of draining more water out of southern California's Strawberry Creek in the San Bernardino National Forest than permitted. The drafted cease-and-desist order, which was sent to the company on Friday, asked Nestlé to stop draining millions of gallons of water out of the forest every year and comes at the same time California's Governor Gavin Newsom declared a drought emergency in two counties.

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An abandoned children's bedroom is seen in the exclusion zone in Pripyat, Ukraine in April 2017. Andreas Jansen / Barcroft Media / Getty Images

Three-and-a-half decades after the world's worst nuclear disaster, Ukrainian officials are transforming the deserted Chernobyl exclusion zone into a monument that educates and warns tourists about the consequences of human error.

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A great white shark near Guadalupe Island, Mexico. Todd Winner / Stocktrek Images / Getty Images

When marine biologist Daniel J. Madigan was working on a research project around Isla San Esteban, Mexico, he heard rumors of illegal shark poaching occurring off the Gulf of California. At the time, eight fishermen illegally caught and killed as many as 14 great white sharks, Hakai Magazine reported.

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An aerial view of the California Aqueduct, which moves water from northern California to the state's drier south, on April 21, 2021 near Bakersfield, California. Mario Tama / Getty Images

As California enters its second consecutive dry year and braces for what could be another devastating wildfire season, Gov. Gavin Newsom declared a drought emergency on Wednesday, in just two counties. The declaration targets Mendocino and Sonoma counties, known for their wineries and grape growing, and where conditions are desperately dry.

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Billions of cicadas are about to emerge from a 17-year slumber. Minh Hoang Cong / 500px / Getty Images

In just a few weeks billions of cicadas are expected to emerge after 17 years underground, swarming portions of the U.S. from Northern Georgia to New York, The Guardian reported. While some people's skin might crawl upon hearing this news, cicada researchers are hoping to learn more about the mysterious species.

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Concerns over drinking polluted water top a recent Gallup poll on environmental threats. sonsam / Getty Images

Americans are most worried about water quality compared to other environmental issues, a new Gallup survey finds.

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An Amazon.com Inc. worker walks past a row of vans outside a distribution facility on Feb. 2, 2021 in Hawthorne, California. PATRICK T. FALLON / AFP via Getty Images

Over the past year, Amazon has significantly expanded its warehouses in Southern California, employing residents in communities that have suffered from high unemployment rates, The Guardian reports. But a new report shows the negative environmental impacts of the boom, highlighting its impact on low-income communities of color across Southern California.

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A recent study focused on regions in Ethiopia, Africa's largest coffee-producing nation. Edwin Remsberg / Getty Images

Climate change could make it harder to find a good cup of coffee, new research finds. A changing climate might shrink suitable areas for specialty coffee production without adaptation, making coffee taste blander and impacting the livelihoods of small farms in the Global South.

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The Gowanus Canal in Brooklyn, New York, a polluted nearly 2 mile-long waterway that is an EPA Superfund site. Jonathan Macagba / Moment / Getty Images

Thousands of Superfund sites exist around the U.S., with toxic substances left open, mismanaged and dumped. Despite the high levels of toxicity at these sites, nearly 21 million people live within a mile of one of them, according to the U.S. Environmental Protection Agency (EPA).

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Airborne microplastics are turning up in remote regions of the world, including the remote Altai mountains in Siberia. Kirill Kukhmar / TASS / Getty Images

Scientists consider plastic pollution one of the "most pressing environmental and social issues of the 21st century," but so far, microplastic research has mostly focused on the impact on rivers and oceans.

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