California Solar Panels
In This Guide
- 01 Solar Energy in California
- 02 Solar Cost Calculator
- 03 California Reviews
- 04 Key Takeaways
- 05 California Electricity Prices
- 06 California Solar Incentives
- 07 California Solar Production
- 08 Solar Installations in California
- 09 Choosing an Installer
- 10 Leasing Solar Panels
- 11 Frequently Asked Questions
Solar in California
California ranks first in residential solar installations. If you’re considering panels, start with the basics: your home’s energy use, your roof’s suitability, and your utility’s requirements for connecting a solar system.
Learn what to expect from solar installation in California and explore the essentials of home solar panels.
California Solar Panel Cost
Explore solar costs using Palmetto’s real installation data from Los Angeles, San Diego, Sacramento, and Fresno. The calculator defaults to a no-upfront-cost LightReach monthly lease; Palmetto owns and maintains the system, with a 90% production guarantee and comprehensive protection program. Compare a cash purchase, too.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- California gets plenty of sun, but your roof, energy use, and utility rules shape how much solar can help.
- Incentives and solar billing rules vary by location and eligibility, so check what applies to your home and utility.
- A LightReach lease has no upfront cost and fixed monthly payments; Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection.
Looking for More Detailed California City Guides?
Explore our comprehensive solar guides for major cities across California to find location-specific information on incentives, installers, and solar potential.
Fremont Solar Panels
Fresno, CA
Lancaster Solar Panels
Long Beach Solar Panels
Los Angeles, CA
Oakland Solar Installation
Solar in Oxnard
Solar in Redding
Sacramento Solar Panels
San Diego Solar Installation
Solar in San Jose
Solar in Victorville
Yuba City, CA
Looking for information on our new Heat Pump offering?
Explore California Heat PumpsCalifornia Electricity Prices
California electricity prices have climbed well above the national average. See how the trend may affect household energy costs.
The chart shows California’s electricity price rising from 22.8 cents per kilowatt-hour in 2021 to 31.9 cents in 2024; the U.S. average increased from 13.7 to 16.5 cents.
Solar panels can help California homeowners produce some electricity at home and rely less on the grid. Potential savings depend on household use, system size, utility rates, and billing rules.
LightReach offers solar with no upfront investment and a low fixed monthly payment, helping make energy costs predictable. Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection program; utility bills may still apply.
Price of Energy: California vs National Average
California Area Utility Providers
For solar installation in California, 2023 figures (2024 data is not yet available) show utility rates from 16.9¢ to 45.5¢ per kWh. The state average was 29.5¢/kWh, versus 16.0¢ nationally.
MID 19.7¢; SMUD 16.9¢; Anaheim 17.5¢; Riverside 18.4¢; PG&E 34.0¢; SDG&E 45.5¢; SCE 32.3¢; IID 17.6¢; LADWP 23.0¢/kWh. PG&E, SDG&E, and SCE exceeded the state average; all rates topped the national average. The figures show differences, not their causes.
High rates may improve solar’s value, but savings depend on usage and utility rules. LightReach leases have no upfront cost and fixed monthly payments; Palmetto owns and maintains the system, with a 90% Production Guarantee and comprehensive protection program.
California Utilities Electricity Rates
California Solar Incentives
California households may qualify for state or utility programs supporting solar, battery storage, or lower electricity bills. Explore the solar incentives in California below.
Programs may offer rebates for solar or batteries, electricity bill discounts, financing, property or sales-tax exclusions, and credits for exported power. Eligibility, benefit amounts, locations, program rules, and available funding vary.
Big Beautiful Bill ended federal 30% residential tax credit; state/local incentives remain. LightReach: Palmetto handles commercial ITC, passes savings through lower monthly payments; system ownership/maintenance, 90% production guarantee, protection included.
| Incentive | Type | Description | Source |
|---|---|---|---|
| SGIP — Residential Solar and Storage Equity (RSSE) | Solar and Battery Rebate | Income-qualified California households may receive up to $1,100 per kWh of eligible battery capacity and $3,100 per kW of paired solar, subject to program rules and available funding. | Learn More |
| Disadvantaged Communities — Single-Family Solar Homes (DAC-SASH) | Solar Rebate / No-Cost Solar Program | Eligible income-qualified homeowners in qualifying disadvantaged communities may receive rooftop solar supported by a $3 per CEC-AC watt program incentive. | Learn More |
| Solar on Multifamily Affordable Housing (SOMAH) | Solar and Battery Incentive | Eligible affordable multifamily properties can receive incentives for tenant-serving and common-area solar, with additional incentives for qualifying integrated solar-and-storage projects where funding remains available. | Learn More |
| Disadvantaged Communities Green Tariff (DAC-GT) | Electricity Bill Discount / Community Solar | Eligible customers in participating disadvantaged communities can receive a 20% discount on their applicable electricity rate through a utility clean-energy tariff, rather than a payment for rooftop equipment. | Learn More |
| GoGreen Home Energy Financing — Solar Plus Battery | Financing | Eligible homeowners and renters may access participating-lender financing for solar bundled with battery storage, with program materials describing loan principal up to $75,000 for solar-plus-battery projects. | Learn More |
| Active Solar Energy System New Construction Exclusion | Property Tax Exclusion | Qualifying active solar energy systems generally are excluded from adding assessed value to a California property, with the state exclusion scheduled to sunset January 1, 2027. | Learn More |
| CAEATFA Sales and Use Tax Exclusion (STE) for Approved Projects | Sales and Use Tax Exclusion | Approved participating parties may receive a sales/use-tax exclusion for qualifying alternative-energy, distributed-generation, or storage property purchased for an approved project; it is not a general household solar exemption. | Learn More |
| California Solar Billing Plan / Net Billing Tariff | Net Billing / Solar Export Credits | New eligible rooftop solar customers in PG&E, SCE, and SDG&E territories receive bill credits for electricity exported to the grid under the Net Billing Tariff, with credit values varying by export timing rather than matching retail rates one-for-one. | Learn More |
SGIP’s Residential Solar and Storage Equity (RSSE) offering provides incentives for eligible residential solar-and-battery projects. Published maximum rates are up to $1,100 per kWh of battery storage and $3,100 per kW of paired solar; the actual incentive is limited by eligible project costs, system-sizing rules, and program requirements.
Eligibility is generally for income-qualified California households, including households at or below 80% of area median income or customers who qualify through specified programs such as CARE, FERA, ESA, SASH, or DAC-SASH. Funding, applications, waitlists, and reservation availability vary by utility and program administrator, so confirm current availability with the SGIP administrator before signing a contract.
DAC-SASH supports rooftop solar for qualifying single-family homeowners with an incentive of $3 per CEC-AC watt. The program is designed to make solar available at no cost to eligible households, although project costs, program rules, and funding availability determine whether a particular installation can proceed. The incentive is administered through the program and is not necessarily paid as cash directly to the homeowner.
Applicants generally must own and occupy their primary residence, meet applicable CARE or FERA income criteria, and live in an eligible disadvantaged community or other qualifying area identified by the program. DAC-SASH is a solar program; do not assume that a battery is included. Check current program eligibility and enrollment status with the CPUC or its administrator.
SOMAH provides solar incentives for qualifying affordable multifamily rental housing. Published solar rates can reach $3.50 per AC watt for tenant-serving capacity and $1.19 per AC watt for common-area capacity, with lower rates applying in some circumstances when projects use specified tax credits. Eligible integrated solar-and-storage projects may receive a storage incentive of $1.10 per Wh, subject to program rules and adjustments for other incentives.
Properties generally need at least five rental units and must meet SOMAH’s affordable-housing and tenant-benefit requirements in a participating utility territory. Storage funding is not available everywhere: as of the supplied 2026 status information, storage incentives were paused in PG&E and SDG&E territories, while funds were reported available in SCE, Liberty Utilities, and Pacific Power territories. Confirm the current funding status and project eligibility with SOMAH before relying on an incentive.
DAC-GT provides qualifying residential customers a 20% discount on their otherwise applicable electric rate through a clean-energy tariff associated with a shared renewable-energy project. It is a bill discount—not a rooftop-solar or battery installation rebate—and can be relevant to renters or households that cannot install their own system.
Eligibility generally depends on meeting CARE or FERA income requirements and living in a designated disadvantaged community within a participating service area. Enrollment arrangements and availability vary by utility or community choice aggregator, so contact the electricity provider to check whether the program is offered at your address.
GoGreen Home uses credit enhancements to help participating lenders offer financing for eligible home energy improvements, including solar paired with battery storage. Program materials describe a loan-principal ceiling of up to $75,000 for solar-plus-battery projects; this is financing, not a rebate or grant, and borrowers must repay the loan.
Homeowners and renters may qualify for eligible properties and measures when served by a participating utility or community choice aggregator and using an enrolled contractor. Interest rates, fees, approval criteria, and loan terms are set by participating lenders. Confirm that the proposed solar-and-storage project and contractor qualify before applying.
California’s Active Solar Energy System New Construction Exclusion generally prevents the value attributable to a qualifying active solar energy system from increasing the property’s assessed value. This can reduce the property-tax impact of adding qualifying solar equipment, but it is an assessment exclusion rather than an upfront rebate.
The exclusion is scheduled to sunset on January 1, 2027, so it is relevant to qualifying projects in 2026. Treatment can depend on the equipment and how it is installed; the exclusion should not be assumed to cover a standalone battery. Contact the county assessor to confirm how the rules apply to a specific property and project.
California’s Sales and Use Tax Exclusion can reduce or eliminate sales/use tax on qualifying property purchased by an approved participating party or its construction contractor for an approved project. Eligible project categories can include specified alternative-energy, distributed-generation, and energy-storage technologies.
This is a project-approval program, not a blanket sales-tax exemption for a homeowner buying rooftop panels or a battery. Applicants must satisfy the program’s project, party, and approval requirements, so homeowners should not assume a residential purchase qualifies. Consult CAEATFA’s current program materials before including a tax exclusion in project economics.
The Net Billing Tariff, also called the Solar Billing Plan, governs export compensation for most new rooftop solar customers in PG&E, SCE, and SDG&E territories. Customers receive bill credits for electricity sent to the grid, but the credit value varies by when the power is exported and generally is not the old one-for-one retail-rate net-metering credit.
This tariff is a billing policy, not an installation rebate. A battery may allow a household to store solar generation and use it later instead of exporting it, but the financial result depends on the customer’s usage, rate plan, equipment, and export timing. Existing customers may remain on a legacy tariff subject to its rules; other utility territories may have different arrangements.
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Get a Free QuoteCalifornia Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. California’s sunny summers, coastal clouds, winter storms, and changing day length shape solar output. Still, proper system design can make solar productive—even in cloudier cities like Seattle or Boston.
What Can the Average California Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average California 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 California 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
See how affordable solar leasing can be for your home
Get a personalized LightReach quote based on your home, energy usage, and roof — no upfront cost required.
Get My Custom EstimateSolar Installations in California
We’ve organized solar installation data from across the country to create this interactive California map. Explore the hexagons to see how many solar installations are in each area—and discover neighborhoods and communities across California where your neighbors have made the switch to solar.
How to Choose a Solar Installer in California
Verify the license
California solar contractors must hold an active license from the California Contractors State License Board (CSLB) in a classification authorized for the work. Authorized photovoltaic classifications include C-46 Solar and C-10 Electrical, as well as certain other classifications, including A and B within its scope. Check the contracting business or contractor—not just the salesperson—using the CSLB license lookup, and confirm that the classification covers your project. A permit-required project is not eligible for the small-work licensing exemption.
Look for certified installers
Ask whether the people designing and installing your system hold a relevant credential, such as a NABCEP certification, or certifications from the manufacturers whose equipment is proposed. Find out exactly which individual holds each credential and what work or products it covers. Compare credentials as one part of your review; they do not replace checking the responsible contractor’s California license.
Compare quotes the same way
Ask each installer to quote the same scope and put these details in writing so you can compare equivalent systems:
- System size: capacity in kilowatts (kW) and the price per watt.
- Equipment: panel and inverter brands and models.
- Expected production: estimated kilowatt-hours per year (kWh/year), and the assumptions behind the estimate.
- Warranties: panel product and performance, inverter, workmanship, and roof penetrations. Check who provides each warranty and what it covers.
- Project responsibilities: who handles building permits, inspections, and utility interconnection.
- Payment: total cost or monthly payment, plus any escalator and how it affects payments.
Permits, interconnection and your HOA
Your city or county enforcing agency—usually its building department—reviews local permits and inspections, including structural, electrical, and fire-code requirements. The installer must also obtain separate utility interconnection approval. Depending on your address, the utility may be Southern California Edison Co, Pacific Gas & Electric Co., Los Angeles Department of Water & Power, Sacramento Municipal Utility District, or another provider. For utilities under CPUC jurisdiction, Electric Rule 21 describes interconnection, operating, and metering requirements, but each covered utility administers its own tariff; Rule 21 is not universal for every utility.
California Civil Code sections 714 and 714.1 address HOA restrictions: governing-document restrictions that effectively prohibit or restrict a solar energy system are void, while reasonable restrictions are allowed if they do not significantly increase cost or reduce efficiency. An association may not adopt a general policy prohibiting household rooftop solar on an owner’s residence or assigned garage or carport. Ask the installer who will coordinate any HOA review. See California Civil Code section 714.
Red flags
- Pressure to sign the same day, before you have time to compare quotes.
- Unlicensed crews, or out-of-state crews without a clearly identified California-licensed contractor responsible for the work.
- Vague production estimates or reluctance to explain the estimate.
- A large upfront deposit without a clear written schedule of payments and work.
- Promises of federal homeowner tax credits for purchases in 2026; homeowner credits ended December 31, 2025.
Go Solar with LightReach — No Upfront Cost
Solar financing availability varies by utility. Palmetto LightReach leases are available in IID and LADWP territories; PPAs are available in SCE, SDG&E, and PG&E territories. Palmetto is not currently open in SMUD territory. Availability depends on your address.
A lease has a fixed monthly payment. A PPA charges a set price per kilowatt-hour, so payments can vary with seasonal solar production. Learn more about buying or leasing solar.
LightReach centralizes plan costs in one inclusive price. Palmetto Finance owns, installs, maintains, and services the system at no cost to you. The lease includes a 90% Production Guarantee—with a credit for any shortfall—and a comprehensive protection program. Unlike a cash purchase, it avoids an upfront system cost and homeowner-managed maintenance. Explore LightReach.
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!
Explore LightReach LeasingFrequently Asked Questions
Yes, California has solar export billing, but most new rooftop solar customers do not receive traditional one-for-one net metering. In PG&E, SCE, and SDG&E territories, new customers generally use the Net Billing Tariff, also called the Solar Billing Plan. It credits electricity sent to the grid at values that vary by export time.
Existing customers may remain on a legacy tariff under its rules, and other utility territories may have different arrangements. This is a billing policy, not an installation rebate; a battery can store solar power for later use instead of exporting it.
Yes, an owned solar panel system may increase a California home’s value. A Zillow study found homes with solar panels sold for approximately 4.1% more than comparable homes, though the effect can vary by location, system condition, and buyer demand. California’s high electricity prices may also make potential bill savings appealing to buyers.
This value finding applies to systems the homeowner owns, not leased or third-party-owned (TPO) systems. A leased system may affect resale differently because the buyer may need to assume the lease agreement.
In California, a LightReach solar lease can start at $88 per month with no upfront cost, based on the calculator’s typical 6.67 kW system. The monthly payment and system size depend on your home. Palmetto owns and maintains the system, and the lease includes a 90% Production Guarantee and comprehensive protection program.
As a cash-purchase alternative, the calculator estimates $19,288 for that system. The federal 30% solar tax credit is no longer available for residential cash purchases following the 2025 federal law change. See the calculator above for estimates and assumptions specific to California.
With a solar lease, a provider installs and owns the panels, and you pay a monthly amount to use the system’s electricity. In California, a typical 6.67 kW system is estimated at about $88 per month, based on 1,440 kWh/kW/year of production and $0.11/kWh. Your actual payment depends on your home and lease terms.
Palmetto’s LightReach lease has no upfront cost; one monthly payment covers the system, installation, monitoring, maintenance, and protection, including a 90% Production Guarantee. Palmetto claims the commercial ITC as system owner and passes savings through in lower payments. Payments may be below your current electricity bill, so savings can start when the system is active, though utility charges may remain.
A typical 6.67 kW solar system in California can produce about 11,200 kWh of electricity per year. This estimate scales the article’s irradiance figure of 16,861 kWh annually for a 10 kW system; California averages about six peak sun hours per day.
Actual output varies by location and roof direction, tilt, and shading. Production is usually higher on long, sunny summer days and lower during shorter winter days, storms, or cloudy periods.
Solar panels in California are generally low-maintenance. Check system output periodically, and arrange cleaning if dust, pollen, or wildfire ash visibly builds up or reduces production.
With LightReach, Palmetto owns the system and handles monitoring, maintenance, and repairs at no extra cost. The program also includes a 90% Production Guarantee.
Yes. Solar panels work well in California’s climate. The state averages about 6 peak sun hours per day, though sunlight and cloud cover vary by location. Panels can still generate electricity on cloudy days, but usually produce less than in direct sun.
Production also changes with the seasons: the article estimates a 10 kW system produces about 55.6 kWh per day in July and 32.4 kWh per day in December. Longer summer days boost output; shorter winter days, coastal clouds, and storms can reduce it.