How Much Does Solar Installation Cost in California?
Knowing how much a solar energy system will cost is important when deciding whether to go solar and how to finance the solar installation. The average California solar installation cost for a residential system ranges from $12,000 to $18,000 for a 5kW solar system, before incentives. After applying the 30% federal tax credit, homeowners typically pay between $8,400 and $12,600. Costs vary depending on system size, equipment quality, roof complexity, and the solar installation company you choose.
Here’s a breakdown of the typical costs that make up the total:
Cost Breakdown for a 5kW Solar System
| Component | Cost Range | % of Total Cost |
|---|---|---|
| Solar Panels | $5,000 – $8,000 | 30–40% |
| Inverter | $1,000 – $2,500 | 10–15% |
| Battery Storage | $8,000 – $12,000 | 20–30% (optional) |
| Mounting Equipment | $500 – $2,000 | 5–10% |
| Labor & Installation | $3,000 – $7,000 | 20–30% |
| Permits & Inspections | $100 – $500 | 3–5% |
To lower the total cost of installing solar, you can apply available federal solar incentives. Additional savings may come from California’s Self-Generation Incentive Program (SGIP), local rebates, and time-of-use rate optimization. Your solar installer can help you identify and apply for all available incentives.
Finding the Right Solar Installer in California
Selecting a qualified solar installer is one of the most important decisions in your solar journey. California’s solar market is competitive, with hundreds of solar installation companies offering varying levels of service, pricing, and expertise. Finding the right installer is essential because a poorly installed system can lead to electrical hazards, roof damage, and underperformance. A reputable solar panel installer ensures your system is safe, efficient, and eligible for incentives.
Key Qualities to Look For in California Solar Installers
- Licensing: California requires solar installers to hold a valid contractor license. Most residential solar systems fall under the C-46 (Solar Contractor) or C-10 (Electrical Contractor) license issued by the Contractors State License Board (CSLB)
- NABCEP Certification: The North American Board of Certified Energy Practitioners (NABCEP) offers voluntary certification that signals advanced training and ethical standards. NABCEP-certified installers have passed rigorous exams and maintain continuing education
- Experience & Portfolio: Ask how many installations they’ve completed in your area. Request photos, case studies, and/or references
- Warranty Coverage: The ideal installers should offer the following coverage for their solar installations:
- 25-year panel warranties
- 10–15 years for inverters
- 5–10 years for workmanship
- Transparent Pricing: A trustworthy solar installation company will provide a detailed quote with no hidden fees
- Customer Reviews: Use reputable websites that aggregate user reviews to read verified homeowner experiences
- After-Sales Support: Ensure the installer offers system monitoring, maintenance, and troubleshooting
What Permits Do You Need to Install Solar Panels in California?
In order to encourage a rapid transition to renewable energy in the state, California tries to streamline solar permitting. However, requirements still vary by city and county. While your solar installer should handle all necessary applications, it is helpful to understand what’s involved.
Required Permits
- Building Permit: Confirms your roof can structurally support the solar panels
- Electrical Permit: Ensures compliance with California Electrical Code and Title 24
- Fire Safety Review: Required in wildfire-prone zones to meet access and spacing rules
- Zoning Approval: May be needed for ground-mounted systems or installations in historic districts
- HOA Approval: If you live in a location with a homeowners’ association, you may need to submit your solar installation proposal for review
Streamlined Permitting with SolarAPP+
SolarAPP+ (Solar Automated Permit Processing) is a web-based platform developed by the U.S. Department of Energy and adopted by many California jurisdictions. It automates code compliance checks and allows for same-day permit issuance for eligible residential rooftop systems.
SolarAPP+ supports:
- Roof-mounted PV systems
- Systems with or without battery storage
- Projects up to 400A main service rating
Note that not all cities use SolarAPP+, so check with your local building department or ask your solar installer.
How to Evaluate a California Solar Proposal
A solar installation proposal is a non-binding document that outlines the design, components, pricing, and projected savings of a proposed solar energy system. It is your first look at what a solar installation company is offering. When studying this proposal, make sure that it is clear, detailed, and tailored to your home. This document is different from a solar installation contract. A solar contract is a legally binding document that outlines the finalized terms of an approved solar installation and lays out the responsibilities of the parties involved in the contract.
While you can solicit multiple solar proposals from different installers when comparing available options, a signed solar contract is an agreement made with the installer you select for your installation.
A complete solar proposal should include the following details:
- System size (kW) and estimated annual output (kWh)
- Panel and inverter specifications
- Battery storage details (if applicable)
- Installation timeline and milestones
- Total cost and available financing options
- Estimated savings and payback period
- Warranty coverage (equipment and workmanship)
- Net Energy metering assumptions and export rates
- Maintenance and monitoring services
By requesting multiple solar proposals, you can closely compare pricing, equipment quality, and service terms from different solar power system installers.
What to Look for in California Solar Installation Contracts
A solar installation contract formalizes your agreement with the solar installer. In California, contracts must comply with Assembly Bill 1070, which requires a Solar Energy System Disclosure Document printed in bold 16-point font on the cover page. Below are the terms included in a typical solar contract
Scope of Work
Outlines what the installer will do including design, permitting, installation, inspection, and interconnection tasks. It should also specify who handles utility paperwork and incentive applications.
Timeline & Milestones
The contract should clearly spell out:
- Estimated start and completion dates
- Permit submission and approval timelines
- Inspection and utility interconnection schedule
Warranties & Guarantees
Look for the following details when reviewing warrantee and guarantee terms
- Panels: 25-year performance warranty
- Inverters: 10–15 years
- Workmanship: 5–10 years
- Production Guarantee: Some contracts include a minimum energy output guarantee for the first 10 years
Payment Terms
- Down payment capped at $1,000 or 10% of contract price (whichever is less)
- Progress payments tied to milestones such as permit approval, installation, inspection
- Final payment due upon system activation
Support & Maintenance
This section of the contract should clarify:
- Who provides system monitoring
- How to request repairs
- What’s covered under warranty
- Emergency contact procedures
Contracts must be written in the same language used during the sales presentation and include all financing terms if applicable. By law, you have up to 3 days after signing to cancel a California solar contract. Simply submit or send a written notice of cancellation to the solar provider’s business address by email, fax, or regular mail. You may report the provider to the CSLB if they refuse to cancel the contract as long as you communicated the cancellation latest by the midnight of the third business day after you received a signed and dated copy of the solar contract.
How to Read California Solar Leases
A solar lease (or power purchase agreement) is a binding document that allows you to use solar energy without owning the system. With this lease, you pay a monthly fee to the solar equipment provider for the electricity it generates.
When reviewing a solar lease, you should look for the following terms and details:
- Contract Length: Typically 20–25 years
- Monthly Payment: Fixed or based on energy usage
- Escalator Clause: Annual increase in payments, usually 2.9–3.9%. This can erode savings if utility rates don’t rise as expected
- Buyout Option: Some leases allow you to purchase the system after a set period, usually 5 – 10 years.
- Maintenance Responsibility: Usually handled by the leasing company, including repairs and monitoring
- Transferability: Important if you plan to sell your home. Some leases are assumable by the buyer; others require payoff
- Performance Guarantee: Ensures the system produces a minimum amount of energy annually
California law requires solar providers to give you a copy of the lease or power purchase agreement in the same language used during the sales pitch. Always read the CPUC’s Solar Consumer Protection Guide before signing.