The cost of solar panels in California
Updated Oct 26, 2023
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You'll pay an average of $14,896 to install a 5 kilowatt solar panel system in California, before incentives.
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The federal investment tax credit (ITC) lowers that price by 30% of all your solar equipment and installation costs.
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With EnergySage's competitive marketplace, you can expect to see prices up to 20% lower than if you work with a single company.
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Written by: Emily Walker
As of November 2023, the average solar panel system costs $2.98/W including installation in California. For a 5 kW installation, this comes out to about $14,896 before incentives, though prices range from $12,662 to $17,130. After the federal tax credit, the average price drops by 30%.
Average price of a 5 kW solar panel installation in California
You'll probably pay even less than what we show here. It doesn't include the federal ITC or California state incentives, which will lower this price by at least a few thousand dollars.
Your solar panel cost depends on your system's size
It may seem obvious but larger solar panel systems cost more money. We use cost per watt ($/W) so you can easily compare quotes, controlling for slight variations in system size.
While a 5 kW system will only cost you $14,896 in California, doubling the system size effectively doubles the price, so you'll pay about twice that for a 10 kW system. The higher the price tag, though, the more you'll get back as a credit towards your federal tax bill.
Average solar cost by system size in California
System Size | System Cost | System Cost (after ITC) |
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3 kW | $8,938 | $6,256 |
4 kW | $11,917 | $8,342 |
5 kW | $14,896 | $10,427 |
6 kW | $17,875 | $12,513 |
7 kW | $20,855 | $14,598 |
8 kW | $23,834 | $16,684 |
9 kW | $26,813 | $18,769 |
10 kW | $29,792 | $20,855 |
Are solar panels worth it in California?
Solar panels are worth it in most areas, including California. Certain factors, including the cost of electricity, incentives, climate, and the angle at which the sun hits your roof impact how quickly you break even on your investment relative to other areas around the U.S.
If you pay for your system with cash, you'll save about $55,684 over 20 years on electricity costs with a 5 kW system in California. We generate this estimate based on real solar quote data from our Marketplace. It considers your system's cost, the federal tax credit, and inflation rates.
If you don't have access to net metering, these estimates don't account for utility net billing rates.
If you can't shell out $14,896 in cash to pay for solar, don't sweat it. You can choose to finance your system with a loan instead. Some companies even offer $0-down loans so you can start saving on day one if your loan payments are less than your current electric bills. Just keep in mind that your long-term savings will be lower with a loan due to interest rates.
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The numbers we're showing are averages. The price you'll pay for solar depends on many factors unique to you and your home:
If you're looking for solar companies in CA, here are some popular suggestions:
- Elite+ InstallerScreened & Verified5.0 /5.0673 Reviews
- Elite+ InstallerScreened & Verified5.0 /5.090 Reviews
- Elite+ InstallerScreened & Verified5.0 /5.0110 Reviews
- Elite+ InstallerScreened & Verified5.0 /5.075 Reviews
- Elite+ InstallerScreened & Verified4.5 /5.0549 Reviews
Solar is a major purchase, but you can get the price tag to come down a bit by being an educated shopper. Taking advantage of incentives and rebates and shopping around for quotes can bring down your cost of solar in California.
Take advantage of federal and local solar incentives
As long as your federal tax bill is high enough, you can take advantage of the federal tax credit in California. This incentive allows you to apply 30% of your solar installation and equipment costs toward your federal tax bill. If the amount exceeds your tax bill, you can roll over the remaining credit to the following year. Many states also offer great local incentives and rebates.
Get quotes from multiple installers
Comparing multiple solar quotes can save you money through competition and transparency. Each additional quote you receive for solar will help you find the right solar panel system at the right price.
This is where EnergySage can help. With funding from the Department of Energy’s SunShot Prize, EnergySage opened the country’s first (and now the largest) marketplace for home solar panel installations. We gather custom solar quotes from local installers on your behalf and put them in an easy-to-compare format. When you compare quotes for solar panels on the EnergySage Marketplace, you can expect to see prices up to 20% lower than if you work with a single solar company.
See what solar costs in CA counties
Choose a county below to see the solar costs in that area.
How much do solar panels cost in California?
As of November 2023, the average solar panel cost in California is $2.98/W. If you install a 5 kW system it will cost you between $12,662 to $17,130, with an average cost of $14,896.
What incentives are available for solar in California?
What solar financing options are available to me?
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