California has some of the highest electricity rates in the country and, as a result, has been a leader in home solar panel installations. But the solar calculus isn’t the same in every part of the state.
Getting solar panels in Oakland could save you money. High electricity rates mean solar panels can provide savings (and energy independence) for years to come. Here’s what you need to know about solar panels in Oakland, including how to find the best company.
See how much you can save by going solar with Palmetto
Does Solar Make Sense in Oakland?
Solar panels can certainly make sense in Oakland, though everyone’s situation is different. Consider these factors as you make your decision about solar panels on your roof.
Price of electricity
California is famous in certain circles for its high electricity prices. The statewide average was 29.51 cents per kilowatt-hour in 2023, according to the US Energy Information Administration, well over the national average of 16 cents. Pacific Gas & Electric had an even higher average rate that year: 34.04 cents, though the actual rate you pay may average higher.
When you go solar, you must have a time-of-use rate, which varies throughout the day. During peak hours electricity is more expensive, which means your average utility rate could be higher depending on how much of your electricity you use during peak periods.
Price of solar
The price of solar varies depending on a number of factors. The Solar Energy Industries Association, the major solar trade group, puts the national average for residential solar at $3.33 per watt of installed capacity. That estimate is higher than others, which makes sense because the local cost of labor, the size of the system, the complexity of the roof, and more can all affect the price.
The best way to determine the cost of solar at your home is to get a quote from a reputable solar installer.
Available sunlight
Since solar panels need sunlight to generate electricity, the amount of sunlight your home receives can be a deciding factor in whether solar is worth it for you. If your home is heavily shaded, solar won’t be a good choice.
Oakland gets a daily average of 4.75 and 5.25 peak sun hours throughout the year, according to the National Renewable Energy Laboratory. That’s sunnier than several top ten solar states, including New York and New Jersey.
Outages
Solar panels are designed to shut down during a power outage, but if they’re installed with a battery they keep (at least some of) your house powered up. How much and for how long depends on the size of your battery bank, what you choose to power, and the weather, since your solar panels can recharge them during the day. In many places, California’s solar policies make solar plus storage a better financial decision, too, even if it costs more up front.
In 2023, the average California utility customer was without power for 346 minutes, almost six hours, according to the US Energy Information Administration.
See how much you can save by going solar with Palmetto
Solar Incentives in Oakland
While solar costs have trended downward for years, solar incentives are still an important part of the financial calculus for going solar.
Federal tax credit
The Residential Clean Energy Credit, commonly known as the federal solar tax credit, lets solar owners claim a tax credit worth 30% of their solar panel installation cost, including batteries. It’s been around for years, with a few variations, and is slated to continue through 2034 (though the percentage drops to 26% for installation in 2033 and 22% in 2034).
There are a few stipulations: You can claim it only if you own the panels and they’re on a house you live in, not a rental property you own. The credit only counts against taxes you pay, so you need to pay taxes to take advantage. If your tax liability is too small, you can roll the excess over to future years.
Net metering
Net metering is how utilities compensate solar owners for the electricity they send back to the grid. (You may not use all the energy solar panels generate, so the extra flows back to the grid and is used by your neighbors.) It’s become a general term, but net metering also describes a system where every kilowatt-hour you send to the grid earns you a bill credit worth the price you’d pay for one kilowatt-hour from the grid.
California’s system, technically called net billing, credits you at a rate much lower than the retail rate. Because avoiding buying energy is more valuable than sending it back to the grid, batteries are a valuable addition to your solar system. Batteries let you store energy for later use. If storing and using electricity later lets you save 40 cents per kilowatt-hour and sending it to the grid only earns you six cents, it makes sense to save it for later.
The cost of purchasing electricity from your utility and the value of sending it to your utility vary throughout the day, both typically peaking in the late afternoon.
Property tax exclusion
When you make a large addition to your home, your property is reassessed to include that added value. Solar panels are a large addition but are excluded from this reassessment.
Self Generation Incentive Program
The Self Generation Incentive Program is a California program that offers generous rebates for batteries that can be used during a blackout. Funding for residential batteries has generally been restricted to low-income households or those in wildfire prone areas. Reach out to a qualified installer to see about your eligibility.
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Solar Payback Period in Oakland
Your solar payback period is the amount of time it takes your solar savings to match the money you’ve invested. You can estimate it at the outset with a simple formula.
( Solar costs - Solar incentives ) / Annual solar savings = Solar payback period in years
In California, there’s an even quicker shorthand: The state’s new net billing plan (NEM 3.0) was designed for payback periods between eight and 10 years, though they can be shorter with a battery attached. Payback periods will, of course, vary by home and solar system.
Other factors influencing your solar payback period include whether the price of electricity goes up (as it has in recent years) and whether there are maintenance and service costs for your system.
Pacific Gas & Electric and Rooftop Solar Panels
Unless you go completely off grid with solar (something that’s often too expensive and impractical for most people), you’ll still deal with your utility and receive a utility bill. You’ll have to pay for the grid electricity you use, and your bill will track your net billing credits.
Here are some key figures for Pacific Gas & Electric.
| Estimated avg. utility rate | Fixed utility fees | Rate with solar | Estimated avg. net billing credit | Max offset (AC) | Max system size |
|---|---|---|---|---|---|
| 43.8 cents/kWh | $15/month | E-ELEC | 5.4 cents/kWh | 150% | 30 kW |
Many of these numbers are estimates. For example, people who go solar may have different average electricity rates beforehand and may pay a different average cost per kWh depending on when in the day they consume electricity. The same is true for net billing credits, which are typically most valuable in the late afternoon. The net billing credit here includes an adder for solar panels installed in 2025.
Gas utilities and home electrification
If you also get gas service from Pacific Gas & Electric, you could save even more with solar by electrifying your home. While solar panels can’t provide natural gas for a furnace or gas stove, they can provide electricity to run a heat pump or induction stove.
See how much you can save with home energy changes
Leasing Solar Panels in Oakland
While the cost of residential solar has dropped dramatically over its history, the upfront cost or the prospect of securing a loan may turn some people off of the idea. In these cases, a solar lease or power purchase agreement may be an option.
Under both agreements, collectively known as third-party ownership, you don’t own the panels on your roof. Instead you pay a monthly fee for the equipment or energy it produces but get to skip the expense of purchasing the system.
For example, with a LightReach Energy Plan directly from Palmetto, installation, service, and maintenance are included for monthly payment designed to save you money. You also get a 90% production guarantee.
Discuss your options with a reputable solar company.
Solar Panel Maintenance in Oakland
Solar panels are often low-maintenance equipment, but issues can arise. Problems caused by faulty equipment or installation can be covered by manufacturers’ and installers’ warranties, so it’s important to clearly understand those guarantees from the outset.
Some solar companies offer service and maintenance plans that help catch issues before they develop into bigger ones and extend warranties. Palmetto Protect offers proactive monitoring and issue detection, access to a vetted network of service technicians, and a production guarantee, depending on your chosen plan.
See how much you can save by going solar with Palmetto
Finding the Best Solar Companies in Oakland
One of the most important decisions you’ll make in going solar is who to work with. Working with a capable and honest solar company that performs a quality installation can set you up for decades of solar savings. Here are some tips for finding the best solar company in Oakland.
- Choose the company that gives you time to ask questions and make your decision
- Consider the company’s warranties, price, and after installation support
- Read reviews to get a balanced view of the company
- Check ratings from third parties, like the Better Business Bureau
Palmetto Reviews
“My account rep was very well informed and explained the process from proposal to installation thoroughly. He also helped me to connect with financing and was very good with communication. My installation was complete in half a day and I have now used my system for 21 months. It works beautifully and the app is an excellent way to track production.” Claudia M. 1/8/2025 Google Review
“Palmetto handled every detail and kept in close contact with me so I was always up to date on the process. Installation was quick. The installation crew was wonderful. They cleaned everything up and made sure I was satisfied before leaving. The entire experience was extremely pleasant and simple. I would recommend them 110%.” Denise M., Google Review
“I didn't know much about solar before initially meeting with a Palmetto rep. The process from the first meeting to the system being active was very efficient and required minimal involvement from me. All reps that I interfaced with were very knowledgeable and completely transparent. This helped with gaining knowledge on how solar energy works and increased my comfort with moving into the solar world.” Bryant K., Google Review
“After the system was installed we saw a huge decrease in our electric bills, and a huge decrease in our winter bills even with the lack of sunlight during the winter.” Jim F. Google Review
If you’re interested in solar panels at your home, estimate your savings or contact a Palmetto solar advisor today.
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Frequently Asked Questions
Are solar panels worth it in Oakland?
Even with recent changes to California’s solar policies, solar panels can certainly be worth it in Oakland, though they might not be for every homeowner. To find out how solar panels might work for you, estimate your savings with Palmetto now.
Does Oakland have net metering?
Pacific Gas & Electric, which supplies electricity to Oakland, offers net billing. The credits you earn by sending electricity back to the grid are worth less than the cost to you of grid electricity. That makes battery storage more valuable since it lets you avoid buying more electricity from the grid.
How does the solar tax credit work in Oakland?
California doesn’t have a state tax credit for solar, but people in Oakland can claim the federal solar tax credit if they and their solar panels qualify. It allows for a tax credit of 30% the cost of installing solar and storage.
Should you get solar panels under NEM 3.0?
Whether you should get solar panels depends on a number of personal factors, but solar can still make sense under NEM 3.0, especially with a battery. Solar payback periods are estimated to be eight to 10 years.
Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
