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Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy-efficiency and solar consulting experience covers sectors including banking, textile manufacturing, plastics processing, pharmaceutics, education, food processing, real estate and retail. He has also been writing articles about energy and engineering topics since 2015. Off Grid Solar System Price
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
San Diego has some of the nation’s highest electricity prices. But the city also gets plenty of sunshine, which presents a money-saving opportunity if you use solar panels. According to our research, solar panels have an average cost of $2.51 per watt in San Diego or around $12,550 for a 5 kilowatt (kW) system.
We at the MarketWatch Guides team have reviewed the best solar companies nationwide based on cost, services and customer satisfaction. We then narrowed our list to the top providers in San Diego to help you find an installer for your home solar project.
According to our solar cost research, home solar systems have an average price of $2.51 per watt in California. This is lower than the national average of $2.85 per watt.
Here are the estimated prices of solar panel systems sized 5 kW to 10 kW. The table also gives the net cost after the 30% solar federal tax credit.
*Average solar prices are based on our research into state solar costs. Actual costs depend on your installer, roof complexity and other site conditions.
If you cannot afford the upfront cost of a solar energy system, look for an installation company with financing options such as solar loans, solar leases or power purchase agreements (PPAs).
You can use our solar cost calculator to estimate system costs by your exact ZIP code.
As you can see in the table above, the main factor that determines solar installation costs is the system size. However, solar costs vary depending on your home’s roof complexity and other site conditions. Depending on your location, you may also qualify for financial incentives that reduce photovoltaic (PV) system costs.
We discuss the main factors that influence the cost of a solar panel installation in San Diego below.
Based on our research, San Diego offers no local solar panel system incentives, but residents have access to nationwide and statewide incentives.
The SGIP offers cash incentives for energy storage systems, which vary based on the market segment and storage capacity. The Center for Sustainable Energy manages the program in the San Diego Gas & Electric (SDG&E) service territory. Residential SDG&E customers qualify for an incentive of $150 per kWh of storage capacity, and low-income households can get up to $850 per kWh. Buying a 10 kWh solar battery in San Diego can result in a total incentive of $1,500.
Renewable Energy Investment Tax Credit (ITC)
The ITC is a federal incentive for solar panels, battery systems and other renewable energy technologies. You can claim 30% of system costs as a federal tax deduction on your next annual IRS return after you install solar technology.
Disadvantaged Communities: Single-family Affordable Solar Homes (DC-SASH)
The DC-SASH program is only available for low-income homes in disadvantaged communities. Qualifying households get an incentive of $3 per watt, higher than the average cost of solar panels. As a result, homeowners who qualify for the DC-SASH program receive nearly free solar panels.
These solar incentives are available in San Diego, but you may qualify for more incentives if you’re considering other energy-saving measures for your home. The Database of State Incentives for Renewables and Efficiency (DSIRE) has a detailed list of California’s energy incentive programs and regulatory policies.
As part of our solar industry research and analysis, we keep an updated list of the top solar installers in California and the U.S. The following companies top our list of the best solar companies in San Diego.
We recommend getting solar offers from multiple installers to ensure you get the best price.
With the city’s high electricity prices and abundant sunshine, we think solar panels are worth the cost in San Diego.
As of September 2023, average electricity prices in San Diego were approaching 50 cents per kWh. During the summer, SDG&E charges peak electrical rates of 80 cents or more per kWh. Comparatively, the average U.S. electricity rate is 16.11 cents per kWh. Considering the high energy prices in San Diego, a homeowner who uses 8,000 kWh of energy per year could pay more than $3,200 in power bills. With high electricity prices and abundant solar resources, San Diego provides an opportunity to use solar panels to lower your energy costs.
As mentioned above, NEM 3.0 drastically reduced the compensation rate for excess solar energy sent to the grid. Standalone solar panels make sense financially if you use most of the electricity output directly, but otherwise, consider installing a home battery to maximize your savings.
A 6 kW solar system has a typical cost of $15,060 in California, which decreases to $10,542 after the federal solar tax credit. In this case, the payback period is around 7.5 years. Considering high-quality solar panels last for two to three decades and include 25-year warranty coverage, your panels will continue to perform for years after you pay off your system.
According to the Energy Information Administration’s Residential Energy Consumption Survey, homes with a size of 2,000 to 2,499 square feet have an average energy consumption of 10,697 kWh per year in the West. You need a solar system size of around 7 kW to generate 10,697 kWh of energy in California. Considering the state cost of $2.51 per watt, a 7 kW solar installation costs around $17,570, which drops to $12,299 after the 30% federal tax credit.
How much your electric bill decreases if you install solar depends on several factors, including your energy consumption habits and the solar system size. Considering the high electricity prices and the abundant sunshine in San Diego, a 6 kW solar system can save around $2,000 per year on energy bills.
Yes. California is one of the sunniest states but also has some of the highest electricity rates in the U.S. Solar panels can achieve a payback period of around seven years in California, depending on your system size and energy consumption. The best solar panels last two to three decades and include 25-year-or-more warranties to address performance issues over time. For this reason, solar panels pay for themselves and continue to generate energy beyond your payback period.
We conducted in-depth research and analyzed several factors to determine our solar cost data, which is based on the following resources:
We closely evaluate solar installation companies with a focus on the factors most important to homeowners like you. We based our solar company methodology on input from multiple homeowner surveys, discussions with industry experts and research into the renewable energy market. Our review process involves assessing each company on the following criteria, which we then use to calculate a rating out of 5 stars. Cost and payment options (20 points): Cost is one of the most important factors when installing a solar energy system. Solar providers that offer cash purchases and in-house loan financing earn full points in this category. Companies also receive bonus points for offering solar panel leasing or power purchase agreements (PPAs). Services (20 points): In addition to solar installations, companies offering backup battery and electric vehicle charger installations, energy efficiency audits and system monitoring earn the most points in this category. Companies can also receive points for completing installations in-house, as opposed to using third-party contractors. Reputation (20 points): To assess the reputation of each company, we consider Google star ratings, Better Business Bureau (BBB) scores and reviews, and NABCEP certification status . We also look at customer complaint rates on sites like the BBB and weigh how the company responds. Warranty (15 points): We verify that each company offers workmanship, product and performance warranties on all of its solar installs. A provider earns more points for extending warranties that meet or exceed industry standards, including 10 years for system workmanship and products and 25 years for panel performance. Customer Support (10 points): Solar companies that offer virtual consultations, a mobile app, 24/7 customer support and high customer satisfaction with backend support earn the most points in this category. Industry Experience (10 points): Providers with 10 or more years of experience in the solar installation industry earn a perfect score in this category. Sustainability (5 points):To measure sustainability, we assess each company based on whether it shares a detailed sustainability statement or ESG disclosures on its website. We also conduct research to see if companies offer end-of-life panel disposal programs or have eco-friendly community partnerships.
Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy-efficiency and solar consulting experience covers sectors including banking, textile manufacturing, plastics processing, pharmaceutics, education, food processing, real estate and retail. He has also been writing articles about energy and engineering topics since 2015.
Tori Addison is an editor who has worked in the digital marketing industry for over five years. Her experience includes communications and marketing work in the nonprofit, governmental and academic sectors. A journalist by trade, she started her career covering politics and news in New York’s Hudson Valley. Her work included coverage of local and state budgets, federal financial regulations and health care legislation.
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