Solar payback in California
A 7.7 kW home solar system in California pays for itself in about 12.4 years at 2026 prices, with no federal tax credit. That ranks #11 of 51 states, where 1 is the fastest.
- Installed price
- $3.30/W
- California median, 2025
- Solar output
- 1,677 kWh
- per kW a year, Los Angeles weather
- Electricity rate
- 33.61¢/kWh
- average home rate, EIA
- Value of a solar kWh
- 15.9¢
- net billing
Pays back in year 13
- Cost up front
- $25,410
- Saved per year
- $2,054
- Ahead after 25 years
- $25,932
Payback by quoted price and roof direction
Find your installer's price per watt (total price divided by system watts) to read your payback in California. Nationally, cash buyers paid a median of $3.00 per watt in 2025 and loan buyers $4.50, because loan fees are often built into the price. East and west roofs make 16% and 12% less power than south here.
| Price per watt | 7.7 kW costs | South roof | East roof | West roof |
|---|---|---|---|---|
| $2.50 | $19,250 | 9.4 years | 11.1 years | 10.6 years |
| $3.00 | $23,100 | 11.2 years | 13.4 years | 12.7 years |
| $3.30 (California median) | $25,410 | 12.4 years | 14.7 years | 14.0 years |
| $4.00 | $30,800 | 15.0 years | 17.8 years | 16.9 years |
| $4.50 | $34,650 | 16.9 years | 20.1 years | 19.1 years |
System size barely changes payback here: a bigger system costs more and saves more in about the same proportion.
Questions about solar in California
How does California pay for solar power I send to the grid?
California's Net Billing Tariff (often called NEM 3.0) has applied to new systems since April 15, 2023. Exports earn the utility's avoided cost, about 3.7 to 4.6 cents per kWh on average for 2025 and 2026 applicants. We assume you use 40% of your solar power at home, which makes the average solar kWh worth 15.9¢. Source.
How much did the end of the federal tax credit change payback in California?
With the 30% credit that ended in 2025, the same system would have paid back in about 8.7 years instead of 12.4. The credit ended for systems installed after December 31, 2025. Leased systems and power purchase agreements can still pass on a business credit, but then you do not own the panels.
Is 1,677 kWh per kW a lot?
The range across states runs from about 922 kWh in Alaska to about 1,779 in the Southwest. Sunshine matters less than people expect: the electricity rate and how your utility credits exports move payback more.
States near California in the ranking
- New Hampshire 11.1 years
- New Jersey 11.3 years
- Pennsylvania 12.2 years
- Vermont 12.4 years
- Colorado 13.3 years
- Maryland 13.4 years