How Much Do Solar Panels Cost in California?
California has the highest residential solar adoption rate in the country, and for good reason. California suffers from high electricity costs and has a great climate for solar. The topic of this blog should be “how much does it cost to NOT go solar?”. However, one of the most frequently asked questions is, "How much do California Solar Panels cost?" The answer is a bit more nuanced than a simple figure, as it depends on many factors. Understanding these factors can help you make an informed decision.
Great. But I still hear you asking the question “How much does solar cost for my home in California?” And unfortunately the answer is (typically) “Anywhere between $10,000 and $100,000”. Most systems for residential households cost less than $50,000, maybe a little over that if you add batteries. But frankly, if this is the only answer I left you with, I would not be doing my job. There simply is not a “one size fits all” answer. The real answer is “it depends”. Further, many folks buy solar systems using a loan or a lease, in most cases these payments (even with today’s rates) are lower than the cost of the electricity you are paying for.
What does the cost depend on?
How much electricity do you use? The biggest factor is simply dependant on your electricity usage. A small house with few electrical appliances might need 10 or so panels, which (depending on lots of other factors listed below) might make 5,000 kWh of electricity a year. Meanwhile, the folks next door may have a bigger house with a pool, electric heat, a hot tub, an electric vehicle and the owners may work from home, this house might need 30 or even 40 panels to cover their 20,000 kWh of annual electricity usage.
Shade. This one is simple - the more sun you get the more electricity your panels will make. Let's take the small house example above that uses 5,000 kWh a year: if this house has trees shading it, it could easily need 20 panels compared to a house that has full solar access and only needs 10 panels.
Roof pitch and orientation. Basically have a similar impact to shade, the better the roof pitch and orientation the less panels you will need and the less your solar will cost.
Difficulty of installation. Projects have a huge variety of installation variables that will impact the cost of the installation: Ground mount or roof mount? Steep pitch or flatter roof? Metal, comp shingle or tile roof? How remote is the project? What is the snow load?
Quality of panels. This topic on its own could be a whole blog. Obviously, better quality panels will cost more. There are several factors to consider here. How efficient are the panels? What is their degradation rate (panels that degrade quicker will cost you more in the long run because you will end up buying more power from your provider in the long run). Perhaps most importantly - what is the panel warranty? Solar is reliable BUT not perfectly so. A panel with a 25 year bumper to bumper warranty - not only will it cost you nothing if it fails, it will be less likely to fail.
Scale of installation. Whether you're installing a small residential system or a large commercial setup, the scale of your project will significantly impact the cost. Commercial installations often benefit from economies of scale, reducing the cost per watt.
In conclusion, provided you have reasonable sun exposure, a typical household usage and a typical home design, it is highly likely that your solar system will cost you significantly less than the power you would pay your utility company over the life of the system. In most cases, the cost will be a fraction of the money you would be throwing away to your utility company. Further, in most cases, California solar systems are now paired with a storage system. So installing solar will save you money, be good for the environment and give you some independence from your utility.
