Home · 2026
What home solar costs and saves in California this year — built on the state's real 32.74¢/kWh rate and net billing rules.
Avg electricity rate
32.74¢/kWh
Net metering
Net billing
Federal status
25D ended (2025)
Verified 2026-06-26 · source
In California, the average residential electricity rate is about 32.74¢/kWh — above the U.S. average of roughly 17.6¢. Because a solar system's payback is driven mostly by the utility rate it offsets, California's high rates make home solar a strong bet in 2026.
California uses net billing — exports are credited below the retail rate. That lengthens payback versus full net metering and makes pairing solar with a battery (to use more of your own production) materially more attractive.
The federal 30% residential tax credit (Section 25D) ended for systems installed after December 31, 2025. In 2026, home-solar value comes from offsetting your utility bill, net metering, and battery backup — not a federal credit.
For a typical California home spending about $150/month on electricity, our model estimates a 3.93 kW system costing roughly $11,790 after incentives, paying back in about 6.5 years, with on the order of $33,244 in 25-year savings. These are estimates built from California's real electricity rate — get a quote to confirm your numbers.
With California's net-metering rules, 2026 home solar is increasingly about energy independence — pairing panels with a battery to ride through outages and shift usage — not just shaving the monthly bill.
California's NEM 3.0 net-billing rules mean a battery is now almost essential for solar to pencil out — design around self-consumption, not export.
Estimates only — not tax, financial, or legal advice. Verify all incentives and savings with a qualified professional before acting.
No — the federal residential credit (Section 25D) ended for systems installed after December 31, 2025. California home solar now pays through your electricity rate (about 32.74¢/kWh), net metering, and battery backup rather than a federal credit.
California uses net billing (exports below retail). That affects how the power you export is credited and, in turn, your payback — full retail-rate crediting is most favorable, while net billing makes pairing solar with a battery more attractive.
At about 32.74¢/kWh, California's residential electricity rate strongly favors solar economics in 2026. Run your address through the calculator above for a source-backed estimate of system size, net cost, and payback.
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