Is solar worth it in California?

    Energy CostsNovember 5, 20263 min readEnergy Company team

    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.

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    Written by Energy Company team

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    Frequently asked questions

    Is solar still worth it in California under NEM 3.0?
    Exports now earn about 4.7 cents per kWh with PG&E and SCE and 6.2 cents with SDG&E, while retail rates averaged 33.7 cents (PG&E), 34.4 cents (SCE) and 45.5 cents (SDG&E) in mid-2026. The value is in using your own solar rather than exporting it.
    Do I need a battery with solar in California?
    Under net billing a kWh you export is worth far less than a kWh you buy, so a battery lets you use your solar after dark instead of exporting it. SGIP's equity budget pays $1,100 per kWh for batteries.
    Are California electricity rates still rising?
    SCE raised rates 1.5% on October 1, 2026.
    Is there a California solar deadline to know about?
    California's solar property-tax exclusion ends January 1, 2027.

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