California homes, net billing tariff
Solar panel cost calculator for California homes
A $250 monthly bill at California's average 33.25 cents a kWh needs roughly 5.6 kW of south-facing panels: $18,480 at $3.30 a watt, $32,480 with a $14,000 battery. Exports earn grid value, not retail, and the 30% federal credit ended.
33.25c
average California residential electricity price per kWh, May 2026
0%
federal residential clean energy credit for property placed in service after December 31, 2025
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Behind the numbers
- The federal residential clean energy credit (Internal Revenue Code Section 25D) is not applied. Per the IRS page, it "equals 30% of the costs of new, qualified clean energy property" installed "anytime from 2022 through December 31, 2025".
- It also states "the credit is not available for any property placed in service after December 31, 2025" (irs.gov). The page was last reviewed July 4, 2026; we read it again on our updated date. Confirm your own position with a tax professional, not with a salesperson.
- The default electricity rate of 33.25 cents per kWh is the California residential average for May 2026 (EIA, Electric Power Monthly, Table 5.6.A). Californian tariffs are tiered and time-of-use, so your marginal rate at 6pm can be far above that average. It is an input: change it.
- Sizing assumes roughly 1,600 kWh per kW per year for an unshaded south-facing California roof. It is scaled by 0.85 for an east or west roof and 0.7 for a shaded or north-facing one.
- These are working estimates, not a figure from an official source we can cite today. Treat the suggested size as a starting point, and ask your installer for a modeled production figure for your address.
- Price per watt is your input. The $3.30 default is a typical 2026 California quote and moves with roof type, panel and inverter tier, main panel upgrades, permitting jurisdiction and financing. We publish no California market average because no official source we can cite publishes one.
- Battery storage at a default $14,000 installed is a typical 2026 quote for a home battery in the 10-15 kWh class, again an input rather than a published rate.
- Nothing here estimates savings. Since April 15, 2023, new California interconnection applicants take service on the net billing tariff. Exports are credited "at a rate reflecting the value of this generation to the grid", not at retail rates (CPUC). See how net billing works.
- California has no state income tax credit for residential solar. The property tax treatment under Revenue and Taxation Code section 73 is time-limited and is covered in our incentives guide.
California Solar Cost Calculator is an information site. It is not affiliated with the IRS, the California Public Utilities Commission, the Franchise Tax Board, any utility or any installer, and nothing here is tax or financial advice. Confirm credit and incentive eligibility with a tax professional and prices with licensed installers before buying.
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California solar cost by monthly bill, 2026
Last updated
System size and installed cost for a range of California electricity bills, at the state's May 2026 average rate of 33.25 cents per kWh and $3.30 a watt. The last column adds a $14,000 home battery. Under net billing, that is what turns midday generation into evening value.
Every row comes from the calculator's own formulas. Annual kWh is monthly bill x 12 divided by the rate in dollars per kWh (33.25 cents, the California residential average for May 2026 from the EIA). System size is annual kWh divided by 1,600 kWh per kW per year for an unshaded south-facing roof, rounded to one decimal and clamped to 2-20 kW. Panel cost is size x 1,000 x $3.30 a watt, and the battery column adds a flat $14,000. The rate is official; the price per watt, the battery price and the production figure are editable inputs with typical 2026 defaults, not published market rates. No federal credit is applied.
| Monthly bill | Electricity bought per year | System size | Panels at $3.30 a watt | With a $14,000 battery |
|---|---|---|---|---|
| $100 | 3,609 kWh | 2.3 kW | $7,590 | $21,590 |
| $150 | 5,414 kWh | 3.4 kW | $11,220 | $25,220 |
| $200 | 7,218 kWh | 4.5 kW | $14,850 | $28,850 |
| $250 | 9,023 kWh | 5.6 kW | $18,480 | $32,480 |
| $300 | 10,827 kWh | 6.8 kW | $22,440 | $36,440 |
| $400 | 14,436 kWh | 9 kW | $29,700 | $43,700 |
- A $250 monthly California electricity bill at the state's May 2026 average rate of 33.25 cents per kWh implies about 9,023 kWh a year, which a south-facing roof covers with roughly 5.6 kW of solar.
- At $3.30 a watt that 5.6 kW system is $18,480 installed, or $32,480 with a $14,000 home battery.
- California residential electricity averaged 33.25 cents per kWh in May 2026, more than twice the Arizona, Florida and Texas averages in the same month, which is why California payback math is unlike anywhere else.
Cite this page
“California solar cost by monthly bill, 2026”, California Solar Cost Calculator, https://californiasolarcostcalculator.com/ (updated 2026-09-05). Every row comes from the calculator's own formulas. Annual kWh is monthly bill x 12 divided by the rate in dollars per kWh (33.25 cents, the California residential average for May 2026 from the EIA). System size is annual kWh divided by 1,600 kWh per kW per year for an unshaded south-facing roof, rounded to one decimal and clamped to 2-20 kW. Panel cost is size x 1,000 x $3.30 a watt, and the battery column adds a flat $14,000. The rate is official; the price per watt, the battery price and the production figure are editable inputs with typical 2026 defaults, not published market rates. No federal credit is applied.
Published solar prices from licensed California installers
Three California installers publish their own price per watt and system ranges; the figures below are theirs, read on the date shown, with the page each came from. Under NEM 3.0 most California quotes now pair a battery, which is why the installers' system totals sit above a panels-only figure.
| Provider | What | Published figure | Source |
|---|---|---|---|
| NRG Clean Power (California licence #1026168; Sacramento, Los Angeles, San Diego, San Jose) | Installed cost per watt, California, 2026 | $2.40 to $3.25 per watt | NRG Clean Power, how much solar panels cost in California (July 28, 2026) read 2026-09-05 |
| NRG Clean Power | 5 kW system and 10 kW system, installed | $12,000 – $16,250 and $24,000 – $32,500 | NRG Clean Power, how much solar panels cost in California (July 28, 2026) read 2026-09-05 |
| Ecobill Solar (Glendale) | Standard tier, 8–12 kW, per watt | $2.40–$2.95/W | Ecobill Solar, solar panel cost California 2026 (updated July 2026) read 2026-09-05 |
| Ecobill Solar | Battery system, 10–15 kWh, added to the job | $10,000-$18,000 | Ecobill Solar, solar panel cost California 2026 (updated July 2026) read 2026-09-05 |
| Helios Energy Global (Santa Monica) | Installed cost per watt | $2.50–$3.50 per watt | Helios Energy Global, solar panel cost in California (updated August 20, 2026) read 2026-09-05 |
| Helios Energy Global | Tesla Powerwall 3, added under NEM 3.0 | $13,500 – $17,500 | Helios Energy Global, solar panel cost in California (updated August 20, 2026) read 2026-09-05 |
Related guides
Each one cites where its numbers come from.
Questions, answered directly
What is the average cost for solar in California in 2026?
It depends on how much electricity you buy and your quoted price per watt. For example, a $250 monthly bill at the state's May 2026 average of 33.25 cents per kWh points to roughly 5.6 kW. That is $18,480 at $3.30 a watt, or $32,480 with a $14,000 battery. Enter your own bill, rate and quote in the calculator.
How much are solar panels in California per watt?
Of the 42 California installers we read on 11 October 2026, 8 publish an installed price per watt: $2.40 to $3.14, median about $2.52. Most of the rest ask you to request a quote. A 6 kW system at $2.52 a watt is about $15,100 before any incentive. Every source is on our California installer price index.
Is the 30% federal solar tax credit available in California in 2026?
The IRS page says the 30% credit applies to property installed from 2022 through December 31, 2025. It is not available for any property placed in service after December 31, 2025. That is what we read on irs.gov on this page's updated date. Confirm your own case with a tax professional.
What is the net billing tariff and does it apply to me?
The net billing tariff, widely called NEM 3.0, succeeds net energy metering. The CPUC states that interconnection applicants since April 15, 2023 take service on it. Exports are credited at a rate reflecting their grid value, not retail. The older net energy metering tariffs are closed to new enrollments.
Do I need a battery to make California solar worth it?
Not to make it work, but net billing shifts value toward electricity you use yourself rather than export. A battery moves midday generation to the evening, when avoided imports are most expensive. Price the panels and the battery separately, and ask any installer to show the panel-only case alongside the storage case.
How big a solar system do I need in California?
Divide your annual kilowatt-hours by roughly 1,600 for an unshaded south-facing roof to get a size in kW, then reduce it for shading or an east or west roof. Under net billing there is little reward for oversizing beyond your own usage, so size to consumption rather than to available roof space.
Are California solar prices higher than other states?
We publish no state comparison of installed prices: no official source we can cite publishes one. The electricity price is documented. California residential electricity averaged 33.25 cents per kWh in May 2026, against 15.23 in Arizona and 15.17 in Florida. So avoided consumption is worth much more here.
Sources
This site's own dataset, every figure quoted from its source and dated:
- The CA Installer Price Index carries 17 published figures read from 10 sources' own pages; the 9 published figures given by system size run from 12,000 to 28,800 USD, read 11 November 2026.
- IRS, Residential Clean Energy Credit (Internal Revenue Code Section 25D)
- CPUC, Net Energy Metering and the Net Billing Tariff (D.22-12-056)
- CPUC, Self-Generation Incentive Program
- California Revenue and Taxation Code section 73, active solar energy systems
- EIA, Electric Power Monthly, Table 5.6.A, average retail price of electricity by state
Size it from your bill, not from your roof
Your bill, your rate, your quoted price per watt, with storage priced separately.
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