Solar Quotes in California: How Net Billing Works and What to Ask

How California pays for exported solar

• If you apply to interconnect with PG&E, SCE or SDG&E on or after April 15, 2023, your service is under the CPUC's Net Billing Tariff (which the utilities call the "Solar Billing Plan"). Source: cpuc.ca.gov (accessed 2026-10-20)
• Under net billing, exports are credited at values that are "usually lower than the retail rate." Customers have to take a specific electrification time-of-use rate, and billing is monthly. Source: cpuc.ca.gov (accessed 2026-10-20)
• The CPUC notes that pairing batteries with solar lets customers use or export stored energy during higher-value hours. Source: same page (accessed 2026-10-20)
• Residential PG&E and SCE customers who apply before the end of 2027 get a modest export-credit adder for nine years. SDG&E customers are excluded. Source: same page (accessed 2026-10-20)
• Utility-specific starting points are listed on the CPUC's Resources for Solar Customers page: cpuc.ca.gov (accessed 2026-10-20)

Is solar worth it in California?

It depends on your bill, roof and utility rules. Here is an estimate for a home with a $150 monthly electric bill and a south-facing, unshaded roof, before any incentives:

• Residential electricity averaged an estimated 33.25¢/kWh in California (January–July 2026), above the U.S. average of 18.19¢ (2 of 51, highest first). Source: EIA Electric Power Monthly, Table 5.6.B (accessed 2026-10-20)
• Small rooftop systems in California produced an estimated 1,822 kWh per kW of panels in 2024 (2024 small-scale solar generation divided by average 2023–2024 small-scale capacity). Source: EIA Electric Power Annual 2024, Tables 3.21 and 4.7.B (accessed 2026-10-20)
• Estimated system size: 2.1–2.9 kW, producing about 4,555 kWh a year (estimated).
• Estimated installed cost: $7,500–$13,000 before incentives, using $3.00–$5.20 per watt. Source: Lawrence Berkeley National Laboratory (2024 installed prices, 20th–80th percentile; accessed 2026-10-20)
• Estimated simple payback: 4–10 years. Savings depend on how your utility credits exported energy (see above).

Estimates only, based on public data and simple assumptions. Actual production, cost, and savings vary by home, utility, rate plan, and installer. Not a quote, and not a guarantee of savings. Ask your installer about any state, local, or utility incentives that apply. State and local programs: DSIRE.

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A note on the federal tax credit

The federal residential clean energy credit (25D) doesn't apply to expenditures made after December 31, 2025. The IRS treats an expenditure as made when installation is completed, so most systems installed in 2026 don't qualify. If a quote assumes a 30% federal credit, ask the installer to explain it. Source: IRS OBBB FAQ, irs.gov (accessed 2026-10-20). This page isn't tax advice.

Questions to ask an installer

1. Which tariff and TOU rate does your estimate assume?
2. What export-credit values did you use?
3. Does the quote include a battery, and why or why not?

Get one quote from one installer

Request a free quote. SolarMatchup sends your request to exactly one local installer and never resells it. Any savings depend on your home, your usage, your utility rates and your financing. We don't guarantee savings or incentive eligibility.

City guides

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• Solar quotes in San Diego

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