Estimated Savings for a Typical California Home
Based on a standard 8 kW home system
System Size
8 kW
Gross Cost
$25,600
State Incentive
-$2,000
Net Cost
$23,600
Annual Savings
$2,981
Payback Period
7.9 yrs
25-Year Savings
$78,215
CO₂ Offset/yr
12,465 lbs
California Solar Incentives
✕
Federal Tax Credit (Expired Dec 31, 2025)
The 30% federal Residential Clean Energy Credit ended for purchased systems on December 31, 2025. Homeowners buying with cash or a loan in 2026 can no longer claim it. A solar lease or PPA can still pass through a federal credit through 2027 — the installer claims it and lowers your payments.
$2,000
California State Incentive
California offers property tax exclusion for solar installations.
Net Metering Policy: Modified Net Metering
Top utility in California: Pacific Gas & Electric. View full incentives detail →
Solar Costs by City in California
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Los Angeles | $3,142 | 7.5 | 3,898,747 | Los Angeles DWP |
| San Diego | $2,619 | 9 | 1,386,932 | San Diego Gas & Electric |
| San Jose | $3,355 | 7 | 1,013,240 | Pacific Gas & Electric |
| San Francisco | $2,862 | 8.2 | 873,965 | Pacific Gas & Electric |
| Fresno | $3,280 | 7.2 | 542,107 | Pacific Gas & Electric |
| Sacramento | $2,729 | 8.6 | 513,624 | SMUD |
| Long Beach | $3,306 | 7.1 | 466,742 | Southern California Edison |
| Oakland | $2,768 | 8.5 | 440,646 | Pacific Gas & Electric |
| Bakersfield | $3,178 | 7.4 | 403,455 | Pacific Gas & Electric |
| Anaheim | $3,414 | 6.9 | 350,365 | Southern California Edison |
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Quick Facts: California
- ⚡ Avg rate: $0.220/kWh
- 🌞 Peak sun: 5.8 hrs/day
- 🏭 Top utility: Pacific Gas & Electric
- 📋 Net metering: Modified Net Metering