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Cost of Solar Panels In California

Updated February 2, 2024

The Cost of Solar Panels in California

California is one of the leading solar states in the US! With its year-round sunshine and numerous financial incentives, over 1.8 million homes and businesses have made the switch to solar energy in CA.

But how much does it cost to install solar panels in California? See the complete breakdown of the cost of solar panels in California below, or request a customized solar quote for your home, in minutes!

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How Much Do Solar Panels Cost In CA?

The most recent solar industry data shows that the average costs of solar panels in California is between $11,000 - $16,000, depending on the size of your home and energy needs. The average home size in CA is around 2,100 sq ft., making the average solar system in California around $13,442 before utilizing California solar incentives.

Here’s a more complete breakdown of the cost of solar panels in California, by home size.

Home Size (sq ft)

System Size

Average Costs

1,500 - 1,750 3 kW $8,129
1,750 - 2,000 4 kW $10,751
2,000 - 2,300 5 kW $13,442
2,300 - 2,500 6 kW $16,901
2,500 - 2,800 7 kW $19,312
2,800 - 3,000 8 kW $22,206


** It's important to note that these costs DO NOT include the thousands you can save by utilizing your California Solar Incentives. See which solar financial incentives you qualify for by entering your zip code below!

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Factors That Influence The Costs of Solar

Going solar in California is a lucrative investment for many home and business owners, given the potential savings on monthly energy bills and the undeniable environmental benefits. The cost of installing solar panels in CA, however, is contingent upon several key factors. These encompass the energy requirements of your residence or business, the specific type of solar panels selected, and any additional features desired, such as a solar battery or extra solar panels.

Although initial expenses can vary based on individual circumstances, homeowners in California can expect substantial rewards from their solar choice. On average, solar panel owners in CA witness a 40% - 60% reduction in their electric bills, with the panels typically paying for themselves in under 10 years!

Installation & Labor Costs

Transitioning to solar in California involves more than just the panels. Factors like professional installation, securing necessary permits, and requisite inspections to ensure optimal setup should be considered. These aspects typically contribute to 10% to 20% of the initial solar costs, making them a significant component of the total expense when shifting to solar energy.

The silver lining for Californians is that there are multiple avenues to mitigate these upfront costs. Dive into our comprehensive guide to learn how you can potentially get solar panels installed in CA at zero cost!

Equipment Costs

Let's delve into the equipment expenditures associated with solar adoption in California. Approximately 60-70% of the costs are directed towards the primary solar panel system components: the panels themselves, inverters, and mounting apparatus. These integral elements harmoniously generate a consistent supply of eco-friendly, renewable energy, promising a sustainable solution for residences and businesses for decades.

Solar Taxes

When purchasing solar panels in California, it's essential to consider both sales tax at acquisition and potential property taxes due to increased home valuation.

However, the uplifting news for Californians is the state's proactive stance on promoting green energy. California offers tax exemptions for those investing in solar solutions, alleviating potential financial burdens. Discover more about California's solar tax benefits by inputting your zip code below!

Find out if you qualify for solar savings programs!

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How to Reduce The Costs of Solar Panels in California

Exciting news for Golden State residents – California is brimming with financial incentives for homeowners looking to transition to solar energy! In line with its ambition to amplify renewable energy usage, the state extends various financial benefits to Californians.

Curious about which solar incentives you might qualify for? Request a solar incentive report from the solar professionals at EcoGen America. They'll guide you through available solar discounts, application processes, and give you an estimate for a tailor-made solar panel system for your abode!

ROI on Solar | Solar Payback Period

Have you ever wondered how quickly solar panels can pay for themselves in CA? The answer might surprise you! Given California's elevated electricity rates combined with lucrative solar incentives, a majority of homeowners recoup their initial investment in just 7-9 years. Beyond that horizon, all the savings from solar translate to sheer profit. This ROI makes a compelling case for solar investment in California, explaining the surge in its adoption by homeowners.

Solar Financing Options

Are you concerned about how much solar panels might cost? Fortunately, Solar financing mechanisms like power purchase agreements (PPAs) and diverse solar financing options ensure a smooth transition to solar without draining your finances. With the aid of a PPA or solar-centric loan, you can commence your solar journey with zero initial outlay!

Intrigued by the prospect of zero upfront solar costs? Dive into our complete guide on "How to Get Free Solar Panels in California."

California Solar Incentives

California proudly boasts some of the most enticing solar incentives in the US. In CA, homeowners can avail of a 30% tax deduction courtesy of the federal solar tax credit, while also bypassing additional taxation on the enhanced home value or equipment procurement. Further sweetening the deal are programs like the California Solar Initiative, which reimburse based on your system's energy production. All these benefits coalesce to render solar adoption in California a brilliant decision.

For an encompassing list, view the complete rundown of California Solar Incentives here!

Making the solar switch in California is more economical than ever. With CA's bountiful solar incentives and financing alternatives, you can now join the renewable revolution and harness the boundless energy of the sun, all while being light on the pocket!

Find out if you qualify for solar savings programs!

Do I Qualify?

Please enter a zip code

Are Solar Panels Worth it in CA?

Absolutely! Solar power is a good investment for most homeowners in California. Not only does it promise substantial reductions in electricity bills, but it also furthers the mission for a more sustainable environment. California's unyielding advocacy for solar, evidenced by its plethora of incentives and tax reliefs, ensures that many residents recoup their solar panel expenses in merely 7-9 years. What follows this period? Your solar panels continue to serve you diligently, churning out virtually free electricity for an additional 20-30 years or perhaps even longer. Picture decades of diminished electric bills paired with eco-friendly energy!

Read Also: The Pros & Cons of Solar Panels in California.

Embarking on your solar journey in California can be both effortless and delightful, especially with the right collaborators. Within mere minutes, you can procure a complimentary quote for your desired solar panels, encompassing a comprehensive virtual assessment of your residence, a list of solar incentives you qualify for, and a projection of your potential solar savings. Why wait? Delve into your solar alternatives today, without any binding commitment. Align yourself with the myriad of Californians already reaping the advantages of solar energy!

How We Gather Our Cost Data

We take a data-driven approach to the collection and analysis of solar costs to provide our readers with the most accurate information. Our methodology incorporates data from a variety of trustworthy sources including:

  • Primary Sources: Every year we survey over 100 California homeowners with solar panels to analyze pricing data based on direct consumer experience. 
  • Trusted Resources: We leverage verified datasets and industry reports from authoritative sources including:
    • U.S. Department of Energy (DOE)
    • National Renewable Energy Laboratory (NREL)
    • U.S. Energy Information Administration (EIA)
    • Solar Energy Industries Association (SEIA)
  • Expert Insights: We regularly consult with dozens of experienced solar professionals across the nation who are familiar with the latest trends, equipment and solar energy pricing in local markets.


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Author & Solar Energy Expert

James Kahle, a revered voice in the energy domain, enlightens homeowners about the benefits of solar. Catch James soaking up the sun while playing basketball or immersed in the pages of a book.

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