Is Solar Worth It in California? 2026 Rates & Payback
Is solar worth it in California?
Strongly recommendedWith electricity at 33.6¢/kWh and a payback of just 5.6 years, solar is a strong deal in California.
Electricity here is 75% more expensive than the national average (~19.3¢/kWh).
Rates in California rose 59% from 2020 to 2025. If prices rise 3% a year, payback drops to about 5.2 years. Try other scenarios ↓
Get free quotes from local installersEstimates only. Actual results depend on your home, installer and local rules. Learn more: Is solar worth it in 2026? · What if electricity prices rise?
At 33.6¢/kWh, a home using 900 kWh a month pays about $302. A 6 kW rooftop system here produces roughly 9,600 kWh a year. At $3.00/W ($18,000, before incentives), the savings would pay off the system in about 5.6 years — faster than most states.
Estimate your savings
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Estimate based on average system size and current rates. Actual results vary.
What if electricity prices rise?
Many states have seen rates rise faster than 3% in recent years.
Do nothing: over 25 years you'd pay about $117,638 for the electricity a 6 kW system would otherwise produce — money that stays with the utility instead of paying off your panels.
Estimates only. Actual results depend on your home, installer and local rules.
Electricity rate trend
From 2020 to 2025, the average residential rate went from 20.4¢ to 32.5¢/kWh — +59% in 5 years.
If rates continue at a similar pace, solar payback shortens further.
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Electricity price trend
Electricity in California went up 92% since 2015 (about 6.7% per year).
Average residential price, ¢/kWh (EIA yearly data).
For a 6 kW system. Yearly price rise capped at 5% in this estimate. Future prices are not guaranteed.
Major utilities & net metering
- PG&E
- Southern California Edison
- SDG&E
NEM 3.0 net billing and mandatory time-of-use: peak 4–9 pm.
Net metering: Reduced export credit — exported power earns less than retail, so self-use and batteries matter more.
General guide — check your utility for current rates.
Solar installers in California
See all →SunWise Energy (example)
Featured PartnerSacramento, CA · 14 yrs in business · NABCEP certified
Solar · Batteries · EV chargers
Serves: CA, NV, AZ
Request a quoteGolden Roof Solar (example)
VerifiedSan Diego, CA · 8 yrs in business · NABCEP certified
Solar · Roofing
Serves: CA
Request a quoteFeatured Partners pay for placement. Listings are sample data. Are you an installer? Get listed.
Is your roof solar-ready?
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Data based on EIA and NREL PVWatts (rates for 2026-07). Some figures are sample estimates because a data service was unavailable.