Lancaster, CA Solar Panels
Solar Power in Lancaster
Lancaster residents are turning to solar panels for home use to combat rising energy costs. With California electricity prices jumping 56% from 2020 to 2024, solar installation in Lancaster offers a way to lock in lower rates and protect your budget.
This guide explains everything you need to know about going solar in Lancaster—from understanding your options to choosing the right system for your home.
CALIFORNIA by the Numbers
How Much Do Solar Panels Cost in Lancaster, CA?
Our calculator uses real installation data from Lancaster homes—including neighborhoods like Quartz Hill, Del Sur, and West Lancaster—to show you accurate solar costs. Get personalized estimates based on what your neighbors actually paid, not industry averages.
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Cost
Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Lancaster receives over 280 sunny days annually making it an ideal location for solar energy systems that produce consistent power year-round.
- California electricity rates jumped 40% from 2021 to 2024 while solar panels lock in predictable energy costs for 25+ years.
- A typical Lancaster home can save over $114,000 in 25 years with solar, with systems paying for themselves in under 6 years.
Lancaster Electricity Prices
Understanding electricity costs helps Lancaster residents make informed energy decisions. Here’s what you need to know about local rates and long-term planning.
California electricity rates have risen significantly in recent years. From 2021 to 2024, rates increased from 22.8 cents per kWh to 31.9 cents per kWh—nearly 40% higher in just three years.
Solar panels generate electricity at a fixed cost, helping homeowners offset these rising utility rates. With Lancaster’s abundant sunshine—over 280 sunny days annually—solar systems produce consistent energy year-round, reducing dependence on grid electricity.
Over 25 years, solar panels can provide significant savings as utility rates continue climbing. By generating your own electricity, you gain more control over energy costs and protect your household budget from future rate increases.
Price of Energy: California vs National Average
Lancaster Area Utility Providers
Lancaster, CA residents are served primarily by Southern California Edison (SCE) and Los Angeles Department of Water and Power (LADWP). Understanding your utility’s electricity rates is the first step in evaluating solar for your home.
In 2023, SCE customers paid 32.3¢ per kWh while LADWP customers paid 23.0¢ per kWh—both significantly above the national average of 16.0¢. These higher rates reflect California’s clean energy investments and infrastructure costs in the region.
With electricity costs consistently above national averages, Lancaster homeowners often explore solar to stabilize their energy expenses. Solar panels generate predictable power costs over 25+ years, offering budget certainty as utility rates continue rising.
Lancaster Utilities Electricity Rates
California Solar Incentives
Lancaster homeowners can access several solar incentives in California that significantly reduce installation costs and improve long-term savings on energy bills.
California offers property tax exemptions, programs for disadvantaged communities, and equity fund rebates. These incentives help offset upfront costs while Net Billing regulations affect how you’re credited for excess energy production.
Review the incentives below carefully, as programs change and funding can run out. Acting promptly ensures you maximize available benefits for your Lancaster home.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Property Tax Exemption | State tax exemption | Any increase in value to your home tied to installing solar panels will not be taxed. | Learn More |
| Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program | State program | If you meet key criteria on being in a disadvantaged community you will receive a generous incentive to install solar of $3 per watt. This can add up to $15,000 for a small system of kW. | Learn More |
| Equity Fund | State program | If you meet certain criteria, California is offering rebates that help bring some of the original Net Metering benefits to lower income communities that missed out when CA switched to NEM3.0 | Learn More |
California’s Property Tax Exemption for solar energy systems protects homeowners from paying additional property taxes when they install solar panels. Normally, home improvements that increase your property’s value result in higher property tax bills. However, this state tax exemption ensures that any increase in your home’s assessed value due to a solar installation is excluded from property tax calculations. This means you can enjoy the added value of solar panels without the burden of increased annual property taxes.
The financial benefit varies based on your home’s location and the size of your solar system, but it can result in significant savings over time. For example, if your solar installation adds $30,000 to your home’s value and your property tax rate is 1%, you would save approximately $300 per year in property taxes. This exemption applies to both purchased and leased solar systems on residential properties. The exemption is currently active and available to California homeowners who install qualifying solar energy systems, though it’s wise to verify the current status and any sunset dates with your local tax assessor’s office, as tax policies can change over time.
The Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program is a California state initiative designed to make solar energy accessible to homeowners in disadvantaged communities. This program provides upfront financial incentives to help offset the cost of installing a solar energy system, making clean energy more affordable for qualifying low-income households.
The program offers up to $3 per watt in capacity-based incentives. For example, if you install a 5-kilowatt solar system, you could receive up to $15,000 in upfront incentives to reduce your installation costs.
To qualify for DAC-SASH, you must meet all of the following requirements:
• Own and live in your home as your primary residence
• Receive electrical service from Pacific Gas & Electric (PG&E), Southern California Edison (SCE), or San Diego Gas & Electric (SDG&E)
• Be enrolled in or eligible for the CARE or FERA income-qualified utility bill assistance programs
• Live in a property located within a designated disadvantaged community (DAC) qualified area
If you think you may qualify for this program, you can visit the GRID Alternatives website to learn more about the application process and verify your eligibility. This incentive can be combined with other available programs to further reduce the cost of going solar, making renewable energy a realistic option for households that might otherwise find it financially challenging.
The Equity Fund is a battery storage incentive program created in 2022 through Assembly Bill 209, providing $630 million in funding to help low-income California homeowners afford energy storage systems. This program operates under the Self-Generation Incentive Program (SGIP) and offers rebates based on your battery’s storage capacity, with rates ranging from $150 to $1,000 per kilowatt-hour depending on your specific circumstances.
To qualify for the Equity Fund, you must be enrolled in California’s CARE (California Alternate Rates for Energy) or FERA (Family Electric Rate Assistance) programs, live in a designated Disadvantaged Community, or reside in a California Tribal community. The highest rebate rates of $850 to $1,000 per kilowatt-hour are available if you’re enrolled in DAC-SASH, CARE, or FERA programs, or if you live in California tribal areas, fire-affected zones, high fire-risk areas, or regions with frequent power outages. For example, if you install a 10 kWh battery system and qualify for the top tier, you could receive up to $10,000 in rebates. Additionally, CARE program participants receive approximately 35% off their electric bills, while FERA participants receive approximately 18% off, and both groups are eligible for enhanced net billing credits under California’s NEM 3.0 program.
Net Billing in California is a program that credits you for the excess solar energy your system sends to the electric grid. Unlike older net metering programs that gave you full retail credit, Net Billing (also called “NEM 3”) provides export credits based on the time of day you send power to the grid. The credit value changes every hour depending on when the grid needs power most, with higher values typically during peak demand periods in the evening.
The financial benefit varies by utility and time of export. For the three major investor-owned utilities (PG&E, SCE, and SDGE), export rates are calculated hourly using each utility’s Avoided Cost Calculator. Municipal utilities have different structures: SMUD offers a flat export rate of 7.4 cents per kWh, while Imperial Irrigation District credits exports at $0.0698 per kWh. Any unused credits remaining at your annual anniversary date are paid out at approximately 3-5 cents per kWh for most utilities. LADWP operates differently, allowing credits to roll over indefinitely as dollar credits on your account.
Net Billing applies to new solar interconnection applications submitted after April 15, 2023. If you submitted a complete application by April 14, 2023, you may qualify for the older NEM 2.0 program, but you cannot increase your system size or decrease it by more than 20% without moving to Net Billing. The lower export rates under Net Billing make pairing solar with battery storage more financially attractive, as storing energy to use during evening hours typically provides better value than exporting it to the grid during the day.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with California incentives.
Get a Free QuoteLancaster Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Lancaster’s high desert climate delivers abundant sunshine year-round, with minimal fog or humidity. Even during shorter winter days, your solar panels can generate impressive energy with proper system design.
Solar Production in Lancaster by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Lancaster
We’ve mapped every solar installation across Lancaster to help you explore the clean energy movement in your community. Click any hexagon to see how many neighbors in that area have made the switch to solar power.
Leasing Solar Panels
Lancaster residents have two flexible financing options for solar panels through Palmetto. Homes served by Southern California Edison qualify for a Power Purchase Agreement (PPA), while Los Angeles Department of Water and Power customers can choose a solar lease.
With a PPA, you pay only for the electricity your panels produce—typically at a rate lower than your utility charges. Your monthly cost varies based on production, so you pay more during sunny summer months and less in winter. A lease offers predictable fixed monthly payments year-round, making budgeting straightforward.
Both options eliminate upfront costs, include system maintenance, and let you start saving immediately. Palmetto’s LightReach program handles installation, monitoring, and repairs—you simply enjoy cleaner energy and lower bills without the investment or ownership responsibilities.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes strong financial sense in Lancaster. With over 280 sunny days annually and California electricity rates at 31.9¢ per kWh, solar panels can save Lancaster homeowners over $114,000 in 25 years.
The typical system pays for itself in under 6 years through electricity savings. Lancaster’s abundant sunshine produces consistent energy year-round, helping offset rising utility costs while increasing your home’s value.
Lancaster residents have different net metering options depending on their utility provider. Southern California Edison (SCE) customers fall under California’s Net Billing program (NEM 3), which credits excess solar energy at hourly rates based on grid demand—typically higher in evenings. Los Angeles Department of Water and Power (LADWP) customers receive traditional 1:1 net metering with dollar credits that roll over indefinitely.
Under SCE’s Net Billing, unused credits at your annual anniversary are paid out at roughly 3-5¢/kWh. LADWP credits never expire and apply directly to monthly charges, making it one of California’s most favorable policies for solar homeowners.
Yes, solar panels increase home value in Lancaster. Research from Zillow shows solar panels increase home values by 4.1% on average, which translates to roughly $16,000-$20,000 for typical Lancaster homes.
California’s Property Tax Exemption means this added value won’t increase your property taxes. Buyers value solar for the long-term electricity savings and predictable energy costs, making homes with solar systems more attractive in Lancaster’s competitive real estate market.
Solar panel costs in Lancaster typically range from $15,088 to $24,677 depending on your home size and energy needs. A medium-sized home (2,000-3,000 sq ft) requires a 6.72 kW system costing around $19,414, or about $2.89 per watt.
With Lancaster’s abundant sunshine and California’s electricity rates at 31.9¢/kWh, most systems pay for themselves in 5-6 years through energy savings. Over 25 years, homeowners save over $114,000 on electricity costs.
Yes, solar is financially worth it in Lancaster. With California electricity rates at 31.9¢/kWh and rising, a typical solar system pays for itself in under 6 years through energy savings.
Over 25 years, Lancaster homeowners save over $114,000 on electricity costs while enjoying predictable energy expenses. The abundant sunshine—over 280 sunny days annually—ensures consistent solar production year-round, maximizing your return on investment.
At Palmetto Solar, we bring a national reputation with local expertise to Lancaster. We’ve completed over 7,123 installations across California since 2020, combining quality equipment with competitive financing options that work for your budget.
Our professional install network ensures your system is designed specifically for Lancaster’s climate and your home’s energy needs. From initial consultation through system activation, we handle every detail so you can start saving with confidence.