| Peak sun hours per day | 5.0 – 6.0 |
|---|---|
| Annual kWh per kW installed | 1,450 – 1,750 |
| Typical system size | 6 – 9 kW |
| Electricity rates | Among the highest in the country |
| Export credit regime | Net billing (NEM 3.0) |
How California credits the power you export
California moved from full retail net metering to a net billing tariff in
April 2023. Exported power is credited at avoided-cost values that vary by hour
and season, and those values are typically well below the retail
rate you pay to import. Systems interconnected under the older NEM 2.0 rules were
grandfathered for a defined period.
The practical consequence: self-consumption is worth far more than export. That
is why battery attachment rates in California climbed sharply after the change,
and why a design optimised for the old rules can disappoint under the new ones.
Ask any installer which tariff their savings estimate assumes.
The general mechanics are in net metering explained; this is how they land in California.
What a system costs here
California pricing sits broadly within the national band of $2.50–$3.50 per watt before incentives, so a typical 6 – 9 kW system lands somewhere around $15,000–$32,000 before credits. Local labour rates, permitting fees and whether you need an electrical panel upgrade move that more than the panel brand does. Full breakdown in what solar panels cost.
Incentives that stack in California
| Layer | What it does |
|---|---|
| Property tax | An active exclusion has meant the value solar adds is not assessed for property tax. Check its current status and expiry. |
| Storage | The Self-Generation Incentive Program (SGIP) has offered rebates for battery storage, with higher tiers for equity and fire-risk categories. |
| Low income | Programmes such as DAC-SASH have targeted disadvantaged communities and low-income single-family homes. |
When solar is a poor fit in California
- Coastal fog belts can knock a meaningful slice off production versus inland areas in the same county.
- If your usage is already low and mostly daytime, net billing leaves less room for a battery to pay.
- Under time-of-use rates, an unshaded west-facing roof can beat a partly shaded south-facing one — get the modelling, not the rule of thumb.
The universal disqualifiers apply here too — renting, a roof near end of life, or moving within a few years. See roof age and solar and what happens when you sell.
California solar questions
Is solar still worth it in California after NEM 3.0?
For most households with high bills, yes — but the shape of the return changed. Exported power earns much less than it did, so the value now comes from using your own generation. That pushes many California homeowners toward a battery, and makes the sizing and time-of-use analysis matter more than the panel brand.
How much do solar panels cost in California?
Broadly in line with the national range of $2.50–$3.50 per watt before incentives, so a typical 7 kW system lands around $18,000–$25,000. Labour and permitting costs vary noticeably between jurisdictions within the state.
Do I need a battery in California?
Not required, but the economics favour one more than in most states because the gap between what you pay to import and what you earn to export is wide. Whether it pays for you depends on your usage pattern — see our battery guide.
General information for California homeowners, not financial, tax or engineering advice. Figures are planning ranges; your own quote depends on your roof, your consumption and your utility.