Solar Panel Savings in California
California gets 5.8 peak sun hours per day with electricity at 27.5¢/kWh. See how much you can save with solar panels.
Solar Panel Cost & Savings by System Size in California
| System Size | Gross Cost | After Credits | Payback | 25-Year Savings | Annual kWh |
|---|---|---|---|---|---|
| 6 kW | $16,800 | $11,760 | 5.5 yrs | $57,525 | 12,702 |
| 8 kW | $22,400 | $15,680 | 6.0 yrs | $71,822 | 16,936 |
| 10 kW | $28,000 | $19,600 | 7.4 yrs | $67,902 | 21,170 |
| 12 kW | $33,600 | $23,520 | 8.7 yrs | $63,982 | 25,404 |
Includes 30% federal ITC + 0% California state credit. Assumes 3% annual electricity rate increase and 0.5% panel degradation.
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Is Solar Worth It in California?
California averages 5.8 peak sun hours per day, which means an 8 kW solar system would produce approximately 16,936 kWh per year. At the state's average electricity rate of 27.5¢/kWh, that translates to significant annual savings on your electric bill.
With the federal 30% Investment Tax Credit and California's 0% state incentive, an 8 kW system costing $22,400 drops to just $15,680 after credits — with a payback period of approximately 6.0 years.
Over 25 years, homeowners in California can expect to save $71,822 with an 8 kW system, factoring in panel degradation and rising electricity costs. The combination of excellent sun exposure and federal incentives makes solar a very strong investment in California.