Better Homes And Gardens El Cerrito Ca

Solar panel cost California: Prices & data November 2021

Updated: November 22, 2021

As of Nov 2021, the average cost of solar panels in California is $2.68 per watt making a typical 6000 watt (6 kW) solar system $11,877 after claiming the 26% federal solar tax credit now available.

This is lower than the average price of residential solar power systems across the United States which is currently $3.00 per watt.

Installed California solar system cost by:

Solar panel installation cost in CA by system size in 2021

The size of a solar panel system also plays a role in how much the installation will cost.

Larger solar installations will typically have a lower cost per watt, because the panels can be purchased at a 'bulk price'. However, these larger solar systems will still have a higher total cost, because they are made up of more individual panels.

Table 2: Average cost of residential solar systems by system size

System size*	Avg cost per watt	Avg system cost (After tax credit) show before tax
4kW	$2.91	$8,602
5kW	$2.81	$10,390
6kW	$2.68	$11,877
7kW	$2.66	$13,763
8kW	$2.68	$15,883
9kW	$2.60	$17,289
10kW	$2.58	$19,077

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Current solar panel cost near you in CA

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Prices based on a 7.332 system, after 26% federal tax credit

Net profit (savings less system cost)

91352

Recommended size for the selected utility bill

7.332 Solar panel cost calculator

Calculating the cost of solar panels for your specific home in CA

Installation costs for solar will vary with your location and the size of your homes electricity bill. To be meaningful solar cost information needs to be tailored to the individual situation. If you enter your details into the solar calculator below you will get a solar cost and savings estimate and find out how much solar panels will cost for your home based on current offers from your local solar installation companies.

Who are the best solar panel installation companies in California that offer the best deals on quality solar systems?

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Use our solar cost calculator to get an online solar estimate and gather solar system quotes for your home in CA

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What other factors affect the cost of solar panels for your home?

The cost of solar doesn't just include the equipment and installation costs - it's also made up of permitting costs, inspection costs, and installer profit margins.

These different components are what make the price of solar fluctuate between installations. Some of the factors that affect solar power system installation costs for specific homes include:

The amount of electricity your home uses

Homes that use more electricity will need more solar panels to cover their energy needs.

Although solar panels do get cheaper on a per-watt basis, the overall cost of the system will increase as more panels are added.

But, the higher a home's energy usage, the more solar panels can save the homeowners on their energy bills.

The type of solar panels you buy

The price of solar panels can vary depending on the type of solar panels you choose.

There are two main types of solar panels for residential solar installations: monocrystalline and polycrystalline. Monocrystalline solar panels tend to be more efficient and more expensive than other solar panels. Polycrystalline panels have a lower efficiency rating and come at a lower price point.

The type of inverter you buy will also influence the cost of your solar system.

The quality of your solar installation

You may see some solar quotes with prices that seem too good to be true.

If you get quoted for a ridiculously cheap price, the installer might be using low-quality equipment or an unsustainable pricing model. You want to use a solar installer that is charging enough so that they can stay in business - as you'll be relying on them for the next 25 years!

It's important to make sure that your installer is giving you the best quality at the best price possible. This is why getting multiple solar quotes is so important.

Federal, state, and local solar incentives

The overall cost of solar can be influenced by the solar incentives available.

Across the U.S., homeowners can apply for the federal solar tax credit, also called the ITC. The solar tax credit makes installing solar more cost-effective by providing homeowners with a tax credit equal to 26% of the cost of their installed solar panel system.

Local solar tax incentives and rebates can end up saving homeowners thousands on a solar installation, especially when they're used with the federal solar tax credit.

See what solar incentives are available in your area by using our solar panel calculator.

How is the cost of solar panels for homes in California offset by solar tax credits?

The cost of installation of renewable energy systems in California is supported by the federal solar investment tax credit.

The amount of this tax credit is currently 26% of the value of the solar system and it is claimed on your taxes in the year after installation.

Many people mistakenly refer to this tax credit as the California solar tax credit but it is actually a federal tax credit.

California itself does not offer a solar tax credit.

Solar panel cost calculator

How does the cost of solar power compare to the electricity rates charged by PG&E? (per kWh)

Levelized cost of power from this typical solar system installed on a home in California over 25 years is 6.0 cents/kWh.

Average cost of utility power over 25 years (if you don't get solar) is 44.0 cents/kWh. This shows that solar is a far cheaper way to power your home in California over the long term. The way we calculate the average cost of utility power is by assuming the current PG&E electric rates will grow each year at a compound rate of 3.5%. Actual inflation may be higher or lower than this but either way this analysis shows that solar is a clearly better choice.

Are solar panels worth it in California in 2021

The table below shows the data extracted from a real life quote delivered through the SolarReviews marketplace recently for a fairly typical home in California.

As you can see the payback period is relatively short and equates to a much better return on investment than he historical returns that have been available from investing in things like shares or property.

Table 2: Cost, savings and payback period for an average residential solar system in California

System information	Value
System Size (for 100% usage offset)	7.33 kW
Annual power generation	11,326 kWh
Pay-back time (assuming Cash purchase)	5 Years
Internal rate of return (IRR) on investment	17.6%
Gross cost	$20,970
Total Upfront Incentives and Rebates	-$5,452
Net Cost of System after rebated and incentives	$15,518
Total Cost of Utility Power Avoided over 25 years	$106,870

Please note that the investment return figures do not include the possible increase in property value

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Installed solar system cost for the best brands of solar panels in 2021

Below are the solar panel system costs for the 20 most frequently-installed residential solar panels.

Many of the solar modules on this list are from trusted manufacturers with great efficiency ratings and warranties, which is likely the reason they are so popular.

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Why solar panel cost should not be your only consideration when buying solar panels for your home

The most important difference between buying solar panels and any other purchase is that solar panels last 25-30 years. This is a long, long time and you will need customer service over all that time. The reviews below of the two largest corporate solar installation companies indicate larger corporate solar companies are not delivering this support to their customers.

We recommend you find a small or mid-size, local, family-owned solar company. These companies tend to care more about you and your specific job. You don't want to be on hold to a corporation's call center for the next 25 years!

Related solar news

Guide to going solar in PG&E territory

Our guide to getting solar panels for your home if you're a Pacific Gas & Electric customer. PG&E solar programs can ensure you save a lot for years to come.