California homes, net billing tariff
What do solar panels cost in California?
A $250 monthly bill at California's average residential rate of 33.25 cents a kWh means about 9,023 kWh a year, which a south-facing roof covers with roughly 5.6 kW. At $3.30 a watt that is $18,480 for the panels, and $32,480 with a $14,000 home battery. Two things have changed: exports are paid at grid value rather than retail, and the IRS states the 30% federal credit is not available for property placed in service after December 31, 2025.
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
Behind the numbers
- The federal residential clean energy credit (Internal Revenue Code Section 25D) is not applied. The IRS page for the credit states that it "equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through December 31, 2025" and that "the credit is not available for any property placed in service after December 31, 2025" (irs.gov, page last reviewed July 4, 2026, read 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, scaled by 0.85 for an east or west roof and 0.7 for a shaded or north-facing one. These are working estimates rather than a figure from an official source we can cite today, so 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, under which "compensation for excess generation exported to the electric grid is applied to a customer's bill at a rate reflecting the value of this generation to the grid" rather than 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 independent information site operated by Ellul Solutions Ltd. 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.
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 a panel price of $3.30 a watt. The last column adds a $14,000 home battery, which under net billing 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 2026-08-14). 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.
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Questions, answered directly
How much does solar cost in California in 2026?
It depends on how much electricity you buy and what you are quoted per watt. As a worked example, a $250 monthly bill at the state's May 2026 average of 33.25 cents per kWh points at roughly 5.6 kW, which is $18,480 at $3.30 a watt, or $32,480 with a $14,000 battery. Enter your own bill, rate and quoted price in the calculator.
Is the 30% federal solar tax credit available in California in 2026?
The IRS page for the residential clean energy credit states the 30% credit applies to property installed from 2022 through December 31, 2025, and that the credit 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, is the successor to net energy metering. The CPUC states that customers applying for interconnection since April 15, 2023 take service on it, and that exports are credited at a rate reflecting their value to the grid rather than at retail rates. 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, because no official source we can cite publishes one. What is documented is the electricity price: California residential electricity averaged 33.25 cents per kWh in May 2026 against 15.23 in Arizona and 15.17 in Florida, so the value of avoided consumption is much higher here.
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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