Oakland, CA Solar Panels
Solar Power in Oakland
Oakland homeowners are increasingly turning to solar energy to combat rising costs. With California electricity prices increasing 56% from 2020 to 2024, solar panels for your home offer a practical way to take control of your energy expenses.
This guide covers everything you need to know about going solar in Oakland, from local incentives to choosing the right system for your home.
CALIFORNIA by the Numbers
How Much Do Solar Panels Cost in Oakland, CA?
Our calculator uses real installation data from Oakland neighborhoods like Rockridge, Montclair, and Temescal to show you accurate solar costs. Get personalized estimates based on actual local projects, not generic numbers.
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Savings
You can still access the solar tax credit through Palmetto. Talk to us today to find out how.
Key Takeaways
- Oakland’s electricity costs 94% more than the national average at 31.9¢ per kWh, making solar panels a practical long-term investment.
- A typical Oakland solar system pays for itself in 6.5 years and can save homeowners nearly $99,000 over 25 years.
- California’s property tax exemption protects Oakland homeowners from higher taxes on the added value solar panels bring to their homes.
Oakland Electricity Prices
Understanding Oakland’s electricity costs reveals why many Bay Area residents are exploring solar energy as a long-term solution for their homes.
California electricity rates have climbed from 22.8 cents per kWh in 2021 to 31.9 cents in 2024—a 40% increase in just three years. Oakland residents now pay nearly double the national average of 16.5 cents per kWh.
Solar panels allow Oakland homeowners to generate their own electricity, reducing dependence on utility rates that continue climbing year after year. This shift means more predictable energy costs for your household budget.
Over a typical 25-year system lifespan, solar panels can provide decades of stable energy costs while utility rates keep rising. Many Oakland homeowners find this long-term protection increasingly valuable for their financial planning.
Price of Energy: California vs National Average
Oakland Area Utility Providers
Oakland residents receive electricity from Pacific Gas and Electric (PG&E). As of 2023, PG&E’s average rate was 34.0¢ per kWh—more than double the national average of 16.0¢ per kWh.
California’s electricity costs exceed national averages due to infrastructure investments, wildfire prevention programs, and the state’s transition to renewable energy sources. PG&E’s rates also reflect the costs of maintaining service across diverse terrain.
With electricity rates significantly above the national average, Oakland homeowners can benefit from understanding their energy costs. Solar energy offers a way to stabilize expenses and reduce dependence on utility rate increases over time.
Oakland Utilities Electricity Rates
California Solar Incentives
Oakland residents have access to several solar incentives in California that help reduce the upfront cost of going solar.
California offers property tax exemptions, programs for disadvantaged communities, and equity funds designed to make solar accessible. Oakland homeowners can also benefit from net billing, though recent changes mean pairing solar with battery storage often makes more financial sense.
These incentives change regularly, so it’s important to research current programs and understand which ones you qualify for before moving forward.
| 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 the added value from your solar installation—which can be tens of thousands of dollars—won’t increase your annual property taxes. This means you keep more money in your pocket each year while enjoying the benefits of clean energy.
The exemption applies to both residential and commercial solar installations in California and remains in effect for the life of the solar system. There’s no cap on the amount of added value that can be exempted, so whether your solar system adds $20,000 or $50,000 to your home’s value, none of it will be subject to property tax. To qualify, your solar system must be installed and operational. The exemption is automatic—you don’t need to file a separate application, though your county assessor may request documentation of your solar installation. This incentive works alongside your energy savings to improve the overall return on your solar investment, making clean energy more affordable from day one.
The Disadvantaged Communities Single-Family Affordable Solar Homes (DAC-SASH) Program is a California state initiative designed to make solar energy more 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 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, 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, and have your property located in a designated disadvantaged community (DAC) area.
If you think you might qualify for this program, you can visit the GRID Alternatives website to learn more about eligibility requirements and how to apply. This incentive can be combined with other available programs to further reduce the cost of going solar.
The Equity Fund is a $630 million battery storage incentive program created in 2022 under Assembly Bill 209 to help low-income California homeowners afford clean energy storage systems. This program provides cash rebates based on your battery’s storage capacity, with rates ranging from $150 to $1,000 per kilowatt-hour depending on your specific circumstances. For example, if you install a 10 kWh battery system and qualify for the highest tier, you could receive up to $10,000 back as a rebate.
To qualify for the Equity Fund, you must be enrolled in California’s CARE or FERA utility discount programs, live in a designated Disadvantaged Community, or reside in a California tribal area. Higher rebate amounts (up to $1,000 per kWh) are available if you live in areas affected by wildfires, designated as high fire risk zones, or areas that experience frequent power outages. The standard rebate rate is $150 per kWh, while CARE/FERA participants and those in disadvantaged communities can receive $850 per kWh. Those in the highest-risk categories receive $1,000 per kWh. This incentive is administered through the Self-Generation Incentive Program (SGIP) and works alongside California’s net billing program to make battery storage more accessible for communities that need it most.
Net Billing in California is a program that credits you for the excess solar energy your system sends back to the electric grid. Unlike traditional net metering where you receive full retail credit, net billing pays you based on the value of electricity to the grid at the specific time you export it. The credit rate varies by hour and depends on when your solar panels produce more energy than your home uses.
The financial benefit depends on your utility company. For the three major investor-owned utilities (PG&E, SCE, and SDG&E), the new ‘NEM 3’ program started April 15, 2023, and uses hourly export rates that change based on grid demand—typically higher in evening hours and lower during midday. Any unused credits are paid out once per year during your anniversary month at roughly 3-5 cents per kWh. Imperial Irrigation District credits excess energy monthly at $0.0698 per kWh. Sacramento Municipal Utility District pays 7.4 cents per kWh for all exported energy. Los Angeles Department of Water & Power offers traditional 1:1 net metering where credits roll over indefinitely as dollar credits on your account.
If you’re a customer of PG&E, SCE, or SDG&E, it’s important to know that complete interconnection applications submitted by April 14, 2023 may qualify for the more favorable NEM 2.0 program. However, you cannot increase your system size at all, or decrease it by more than 20%, or you’ll be moved to NEM 3. For new applications after this date, you’ll automatically be placed on the Net Billing ‘NEM 3’ program. NEM 3 customers have the flexibility to select or change their annual true-up month by contacting their utility.
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 QuoteOakland 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.
Oakland’s Mediterranean climate brings mild, foggy summers and sunny winters. While coastal fog affects morning production, the city averages excellent annual sunlight—making solar highly effective year-round.
Solar Production in Oakland 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 Oakland
We’ve mapped every solar installation across Oakland to help you explore which neighborhoods are leading the clean energy transition. Click any area to see how many of your neighbors have already made the switch to solar power.
Leasing Solar Panels
Oakland residents served by Pacific Gas & Electric (PGE) have access to Power Purchase Agreements (PPAs) through Palmetto. With a PPA, you pay only for the electricity your solar panels produce at a set rate per kilowatt-hour, rather than paying upfront for the system itself.
This means no large initial investment, no maintenance responsibilities, and no loan payments to manage. Palmetto owns and maintains the system while you enjoy lower electricity costs from day one. Your payments vary by season—typically higher in summer when panels produce more energy—but average out to consistent savings throughout the year.
Compared to purchasing a system outright, PPAs offer immediate savings without the financial commitment or maintenance concerns. Learn more about Palmetto’s LightReach program to see if a PPA makes sense for your Oakland home.
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 sense in Oakland. With electricity costs at 31.9¢ per kWh—94% above the national average—Oakland residents pay significantly more for power than most Americans. A typical solar system here pays for itself in about 6.5 years and can save nearly $99,000 over 25 years.
Oakland’s Mediterranean climate provides excellent year-round sunlight for solar production. California’s property tax exemption also protects you from higher taxes on your home’s increased value, making solar a practical long-term investment for managing rising energy costs.
Oakland residents served by Pacific Gas and Electric (PG&E) have access to California’s Net Billing program (NEM 3), which replaced traditional net metering in April 2023. This program credits you for excess solar energy sent to the grid based on hourly export rates that vary by time of day.
Unlike the previous 1:1 credit system, NEM 3 typically provides higher credits during evening peak hours and lower credits during midday. Any unused credits are paid out annually at roughly 3-5 cents per kWh, making battery storage increasingly valuable for maximizing your solar investment.
Yes, solar panels increase home value in Oakland. Research from Zillow shows solar panels increase home values by 4.1% on average. For a median-priced Oakland home, this means roughly $40,000 in added value.
California’s property tax exemption protects Oakland homeowners from paying higher property taxes on this increased value, allowing you to benefit from the home value boost without the tax burden. This makes solar panels a smart investment for both energy savings and long-term property value.
Solar installation costs in Oakland vary based on your home’s size and energy needs. For a typical medium-sized home (2,000-3,000 sq ft), a 6.72 kW system costs around $19,414, or $2.89 per watt. Smaller homes may need a 5 kW system costing about $15,088, while larger homes might require an 8.8 kW system at approximately $24,677.
These prices reflect the total system cost without incentives. With Oakland’s high electricity rates of 31.9¢ per kWh, most homeowners see their solar investment pay for itself in 6-7 years through energy savings.
Yes, solar is worth it financially for Oakland residents. With electricity costs at 31.9¢ per kWh—nearly double the national average—a typical solar system pays for itself in about 6.5 years through energy savings.
Over 25 years, Oakland homeowners can save approximately $99,000 while protecting themselves from future utility rate increases. California’s property tax exemption also means you won’t pay higher taxes on the added home value solar panels provide.
At Palmetto Solar, we’re committed to making solar accessible and straightforward for Oakland homeowners. With over 7,123 installations completed across California since 2020, we bring national expertise with a local focus to every project.
We offer flexible financing options that work for different budgets, along with a reliable network of professional installers who understand Oakland’s unique requirements. Our team guides you through the entire process—from initial consultation to system activation—ensuring you feel confident every step of the way.