California Solar Data and Statistics: 2026 Rates, Costs, and Incentives

Rooftop solar panels on California homes under a bright clear sky

Quick answer

California is the number one solar state in the country, with about 55 gigawatts of installed solar capacity, more than any other state (SEIA, 2026). Homeowners here pay about 33.3 cents per kWh (EIA, May 2026), and a typical 6 kW rooftop system produces roughly 10,029 kWh a year (NREL PVWatts v8). Since April 15, 2023, the three big utilities (PG&E, SCE, and SDG&E) credit exported solar at lower avoided-cost rates under NEM 3.0, while the municipal utilities LADWP and SMUD keep their own net metering.

California homeowners weighing solar want real numbers, not a sales pitch, so this page gathers the ones that matter in one place, each dated and sourced. The average residential electricity rate here is about 33.3 cents per kWh (EIA, as of May 2026), and a typical 6 kW rooftop system produces about 10,029 kWh a year. Below you will find installed cost, simple payback, per-city production, how each utility handles net metering, and the current state incentives, updated for 2026.

Updated for 2026.

Key statistics: California solar at a glance (2026)

Key numbers (California, 2026)

  • Average residential rate: 33.3 cents per kWh
  • Typical system size: 6 kW
  • Typical annual production: 10,029 kWh per year
  • Typical installed cost: $2.70 to $3.50 per watt
  • Estimated system cost: $16,200 to $21,000
  • Simple payback: about 8 years

According to MySolarFY’s analysis (August 2026), a typical 6 kW system in California produces about 10,029 kWh a year, offsetting power that costs about 33.3 cents per kWh. These are our own compiled figures for California; see Methodology below for exactly how each was produced. For the statewide rules behind these numbers, see our California solar guide.

Metric Value Source (dated)
Average residential rate 33.3 cents per kWh EIA, as of May 2026
Typical system size 6 kW MySolarFY, typical residential array
Typical annual production 10,029 kWh per year NREL PVWatts v8, as of August 2026
Typical installed cost $2.70 to $3.50 per watt MySolarFY cost range, as of August 2026
Estimated system cost $16,200 to $21,000 MySolarFY, 6 kW, as of August 2026
Simple payback about 8 years MySolarFY analysis, as of August 2026

Every figure is dated and attributed. Rate is the EIA residential average for California; production is a modeled NREL PVWatts v8 run for a 6 kW array; cost and payback are MySolarFY estimates for planning, not a quote. Confirm current terms before you decide.

Solar cost and payback by city in California

Production and payback vary within a state because the solar resource and the local rate shift by location. The table below models a 6 kW system for representative California cities using NREL PVWatts v8.

City System size Annual production Est. system cost Simple payback
Los Angeles 6 kW 10,029 kWh per year $18,600 about 7.6 years
San Diego 6 kW 10,053 kWh per year $18,600 about 7.5 years
San Jose 6 kW 9,834 kWh per year $18,600 about 7.8 years
Fresno 6 kW 9,836 kWh per year $18,600 about 7.8 years
Sacramento 6 kW 9,706 kWh per year $18,600 about 8.2 years
San Francisco 6 kW 9,368 kWh per year $18,600 about 8.4 years

Production is a modeled NREL PVWatts v8 run per city ZIP; cost and payback are MySolarFY estimates that hold today’s rate flat and ignore financing. A written quote for your roof beats any table.

Utility rate and net metering comparison

Your utility sets the delivery rate and administers net metering, which is the credit you earn for the power your roof sends back to the grid. See how net metering credits your solar exports for the mechanics.

Utility Residential rate Net metering treatment
Pacific Gas & Electric (PG&E) Among the highest residential rates in the US, tiered and time-of-use NEM 3.0 Net Billing Tariff since April 15, 2023; exported solar is credited at avoided-cost rates, well below retail
Southern California Edison (SCE) Among the highest residential rates in the US, tiered and time-of-use NEM 3.0 Net Billing Tariff since April 15, 2023; exports credited at avoided-cost rates, not retail
San Diego Gas & Electric (SDG&E) Some of the highest residential rates in the country NEM 3.0 Net Billing Tariff since April 15, 2023; exports credited at avoided-cost rates, not retail
Los Angeles Dept. of Water and Power (LADWP) Municipal utility; generally lower residential rates than the IOUs Municipal utility, not under NEM 3.0; runs its own net metering program
Sacramento Municipal Utility District (SMUD) Municipal utility; generally lower residential rates than the IOUs Municipal utility, not under NEM 3.0; runs its own net metering and Solar programs

Net metering rules are set by state law and the utility commission, not the installer. Confirm your utility’s current tariff before you size a system.

California solar incentive stack (2026)

State programs, net metering, and any rebates or SREC market make up the California incentive stack. These go to the system owner, so on a lease or PPA the company that owns the panels keeps the incentive while the net-metering bill credit follows your account.

Property tax exclusion (Active Solar Energy System)

Adding solar does not increase your assessed property value, so it does not raise your property tax bill (California Revenue and Taxation Code Section 73). Active in 2026 (active) (California R&T Code Section 73, as of August 2026)

Net Billing Tariff (NEM 3.0)

PG&E, SCE, and SDG&E customers earn bill credits for exported solar at avoided-cost rates since April 15, 2023. LADWP and SMUD keep their own separate net metering (active) (CPUC Decision D.22-12-056, as of August 2026)

Self-Generation Incentive Program (SGIP)

Rebate for home battery storage. In 2026 the general-market budget is closed; only the income-qualified Residential Solar and Storage Equity (RSSE) tier still accepts new applications (limited) (CPUC SGIP, as of August 2026)

DAC-SASH

Up to about $3 per watt upfront for income-qualified homeowners in disadvantaged communities served by PG&E, SCE, or SDG&E. Does not apply to LADWP (active) (CPUC DAC-SASH, as of August 2026)

The federal homeowner credit has ended, but California’s programs have not. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a California homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). State net metering and the incentives listed above were not affected by that change. For the full timeline, see what the federal solar tax credit change means and our state solar incentives overview.

Methodology and sources

  • Electricity rate: the latest EIA Form residential retail price for California (EIA retail sales, as of May 2026).
  • Production: modeled with NREL PVWatts v8 for a 6 kW south-facing array at the city ZIP (NREL PVWatts v8 documentation, as of August 2026).
  • Cost and payback: MySolarFY estimates built from installed cost per watt (informed by the DataForSEO cost SERP for California) and the EIA rate, holding today’s rate flat and ignoring financing.
  • Incentives and net metering: the California public utility commission and the DSIRE incentive database (DSIRE, as of August 2026).
  • Assumptions: a 6 kW system, standard losses, and a south-facing array. Your roof, usage, and financing change the result, so treat these as planning figures, not a quote.

Citing this data

Citing this data?

Cite as: “MySolarFY, California Solar Data & Statistics 2026, accessed August 22, 2026.” Data compiled by MySolarFY from EIA (residential electricity rate), NREL PVWatts v8 (modeled production), DSIRE and the California public utility commission (incentives and net metering), and DataForSEO (cost SERP). Figures are dated in each table above.

Journalists and researchers may quote these statistics with attribution to MySolarFY and a link to https://mysolarfy.com/california-solar-data-statistics-2026/.

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How to choose a solar installer in California

Rather than chasing a “best installer” list, screen any company against objective criteria: NABCEP certification, a valid state license, a written workmanship and equipment warranty, real experience with your utility’s interconnection, and a transparent quote that uses today’s incentive values. For a checklist, see the right questions to ask a solar installer. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.

Frequently asked questions

What is the average solar cost in California in 2026? A typical residential system in California runs about $2.70 to $3.50 per watt installed before any incentives (MySolarFY cost range, as of August 2026). A 6 kW system is a common size for a single-family home. Cost varies with roof, equipment, and installer, so use a written quote for your own numbers.

How much electricity does a solar system produce in California? A modeled 6 kW array produces about 10,029 kWh a year in California (NREL PVWatts v8, as of August 2026). Production drives both your net-metering credits and your payback, so estimate your specific roof rather than a generic number.

Did the federal solar tax credit end? Yes for homeowners. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a California homeowner who buys solar in 2026 cannot claim it (IRS, as of 2026). State programs and net metering were not affected by that change.

Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NREL, DSIRE, and California PUC sources as of August 2026; rates, incentive values, and net-metering terms can change, so confirm current terms before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional. Learn more about the MySolarFY team and how we work.

MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. Solar panels are not free and any monthly payments apply. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation; lease and PPA terms may include an annual escalator and total payments may exceed a cash purchase, and on a lease or PPA the incentives go to the company that owns the system. Homeowners do not get the federal residential credit that ended after December 31, 2025. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.

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