Is solar worth it in California?
Yes, with a battery. Under California's net billing (NEM 3.0), exported solar earns about 4.7 cents per kWh with PG&E and SCE and 6.2 cents with SDG&E, while those utilities averaged 33.7 to 45.5 cents per kWh in mid-2026, so using your own solar in the evening matters most. The state's solar property-tax exclusion ends January 1, 2027.
The facts
- Average residential rates in mid-2026: PG&E 33.7 cents, SCE 34.4 cents and SDG&E 45.5 cents per kWh. Source: Cal Advocates, Q2 2026 Electric Rates Report
- SCE raised rates 1.5% on October 1, 2026. Source: SCE rate advisory
- Under net billing (NEM 3.0), exports earn about 4.7 cents per kWh on average with PG&E and SCE and 6.2 cents with SDG&E, and fixed charges can't be offset by solar. Source: SolarReviews, California net metering
- SGIP's equity budget pays $1,100 per kWh for batteries. Source: CPUC, Self-Generation Incentive Program
- California's solar property-tax exclusion ends January 1, 2027. Source: Solar.com, California's solar property tax break
Sources
Written by Energy Company team
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