☀️ California · 2025 data

Is solar worth it in California?

At California’s average rate of 31¢/kWh and about 1550 kWh per kW of panels a year, a typical home pays back its system in roughly 4.2 yrs after the 30% federal credit — then keeps saving. Run your own numbers below.

$ / mo
$ / watt
$
to pay back your system
System size
Net cost after 30%
Year-1 savings
25-yr net savings

Independent estimate for guidance only — not a quote or advice. Very high power prices, but NEM 3.0 pays well below retail for exports — a battery changes the math.

What drives solar payback in California

California homeowners pay about 31¢/kWh, which is 14.2¢ above the national average. A rooftop here generates roughly 1550 kWh per kW each year — better than the typical US figure. On exports, California offers partial / below-retail export credit: Very high power prices, but NEM 3.0 pays well below retail for exports — a battery changes the math.

A worked example

For a California home with a $160/month power bill:

4.0 kW
System size needed
$8,391
Net cost after 30% credit
$1,920
First-year savings
$53,009
25-year net savings

Assumes 3.00 $/W installed before incentives. Your actual cost, roof and usage will differ — adjust the calculator above.

California solar incentives

Every estimate here already includes the 30% federal Residential Clean Energy Credit. On top of that, California homeowners may qualify for state, utility or SREC incentives that change often and vary by provider. For the current, authoritative list, check DSIRE’s California programs, then type any rebate into the calculator to see how it shortens your payback.

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