State Guide
California Solar Calculator
Model California solar ROI with high utility rates, NEM 3.0 export values, battery storage, and federal incentives.
Last updated: 2026-06-09· Source label: EIA residential electricity rates, IRS federal clean energy credit, NREL/PVWatts solar assumptions
California has the highest residential electricity rates in the contiguous US at roughly $0.33/kWh, but NEM 3.0 fundamentally changed the math. Under net billing, midday export credits drop to $0.05-0.08/kWh — a fraction of the retail rate — which means sending surplus solar back to the grid no longer drives payback. The winning play is now self-consumption: sizing a system around evening load, leveraging time-of-use rates, and pairing solar with battery storage. PG&E dominates Northern California, SCE covers much of Southern California, and SDG&E serves the San Diego area. A 6-8 kW solar-plus-storage system can pay back in 5-8 years for high-bill households that minimize midday export and maximize stored self-consumption. The SGIP battery rebate, DAC-SASH for low-income households, and the property tax exclusion for active solar systems remain key state-level incentives in 2026.
Texas Solar Calculator
Estimates based on california state averages. Your actual cost depends on roof, equipment, installer, and financing.
Incentives & Rebates
Federal Residential Credit Caveat
The federal residential credit (Section 25D expired Dec 31, 2025) can reduce a $18,000 solar project by about $5,400 if the homeowner has enough tax liability.
SGIP, DAC-SASH, and Property Tax Exclusion
SGIP is most relevant for battery storage and income-qualified customers. California also excludes qualifying active solar systems from property tax reassessment, preserving tax basis while adding home energy value.
Net Metering
New interconnections generally receive export credits based on avoided-cost values rather than full retail net metering. Credits can be low during midday oversupply and higher during grid-stressed evening windows, so batteries and load shifting materially change ROI.
Top Electric Utilities
- 1. Pacific Gas & Electric
- 2. Southern California Edison
- 3. San Diego Gas & Electric
Source: EIA-861, by customer count
Recommended next steps
Calculate your ROI
Use Solar Panel Cost in California (2026) defaults with pre-filled state data.
Review an installer quote
Validate price per watt, system size, and financing terms.
Compare ownership models
Buy vs Lease vs PPA — see which fits your situation.
Refine your estimate
Run the Solar ROI Calculator with your California TOU rate, expected export share, and battery option.
Frequently Asked Questions
Know the numbers before the sales call.
No PDF upload. No account. No sales calls.
Show my solar path →Overview
California has the highest residential electricity rates in the contiguous US at roughly $0.33/kWh, but NEM 3.0 fundamentally changed the math. Under net billing, midday export credits drop to $0.05-0.08/kWh — a fraction of the retail rate — which means sending surplus solar back to the grid no longer drives payback. The winning play is now self-consumption: sizing a system around evening load, leveraging time-of-use rates, and pairing solar with battery storage. PG&E dominates Northern California, SCE covers much of Southern California, and SDG&E serves the San Diego area. A 6-8 kW solar-plus-storage system can pay back in 5-8 years for high-bill households that minimize midday export and maximize stored self-consumption. The SGIP battery rebate, DAC-SASH for low-income households, and the property tax exclusion for active solar systems remain key state-level incentives in 2026.
Use this result
Use the calculator inputs first, then compare the result against local rates, incentives, roof conditions, and utility export rules.
Method, assumptions, and sourcesOpen this section when you want to audit the calculation behind the estimate.ShowHide
Calculation Method
California solar payback = net installed cost after incentives / annual avoided electricity cost plus export credits
Key Assumptions
- Policy last reviewed: 2026-06-09. Federal residential credit assumptions are project-year dependent and not applied by default for 2026+ projects.
- Residential rate and installed-cost figures are planning benchmarks, not a final utility bill audit or installer quote.
- The model assumes a roof with usable sun exposure; shading, roof age, electrical upgrades, permitting, and financing can materially change cost.
- California economics should be checked against high TOU rates, NEM 3.0 avoided-cost export credits, and battery and self-consumption strategy.
- The federal tax credit only helps households with sufficient tax liability and qualifying project documentation.
Data Sources
Electricity rates
EIA Electric Power Monthly
California residential electricity rate benchmarks and high-rate context for utility bill savings.
Solar production
NREL PVWatts
Used for 6-8 kW system output assumptions across coastal, valley, and inland climates.
Federal incentive
IRS Residential Clean Energy Credit
Supports 2026 Section 25D expiration (residential ITC no longer available by default); 2026+ residential projects are not credited by default.
State policy
California Public Utilities Commission NEM 3.0 and SGIP
Supports export-credit, net billing, and storage incentive program details.
Result Summary
Net cost before federal credit
$16,800-$20,400
Estimated for a 6 kW system at $2.80-$3.40/W before any federal residential credit, before optional battery incentives.
Annual bill offset
$1,800-$3,800
Depends heavily on TOU plan, evening consumption, air-conditioning load, and export-credit timing.
Battery relevance
High
NEM 3.0 makes stored self-consumption more valuable than midday export for many homes.
Formula Assumptions Data Sources FAQ Related Links
Compare Solar Costs With Neighboring States
Solar economics vary by state. Compare California with nearby states to see how electricity rates, incentives, and payback periods differ in your region.