Solar power in San Jose, California
Pacific Gas & Electric provides full retail value for energy exported to their grid under net metering.
Under the federal ITC, part of your system costs (26% in 2020, or 22% in 2021) can be claimed as a deduction to your federal tax liability. The federal ITC can be spread over several years to better suit anyones financial situation.
With a chunk of costs covered by the ITC, and a great net metering plan, you'd be crazy not to go solar in San Jose. Even if you still aren't sure, it can never hurt to get a free estimate by entering your bill spend and address into our solar calculator.
Net Metering Broken Down
1kWh of energy sent to the grid takes 1kWh off your bill.
When more energy is produced than your electric costs credit is carried forward to future months. At the end of the yearly billing cycle remaining credit is deposited into your account at about 3-4 cents per kWh.
Under NEM-2 rules, customers of PG&E will have to switch to time of use billing reducing the returns however, only by about 10%; with the decline in equipment costs and great power production numbers in California, this slight change is more than compensated for.
The average cost of installing residential solar panels in San Jose,
California in 2024 is
$2.72 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in San Jose, CA
is $13,600.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in California is only 573kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The San Jose solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our California solar savings calculator can do this because it contains a database of the electric rates charged by City of Palo Alto, Pacific Gas & Electric Co, City of Santa Clara (Silicon Valley Power)
How much can solar panels save you in San Jose
What does the cost of a real solar system look like?
Facts about installing a 9.02kW solar system in San Jose, CA
This system would offset 100% of your energy usage if your typical monthly bill is $205, however your situation may vary so try our San Jose solar calculator to get a result tailored to you.
$17,021
Net cost of system
6 Years 1 Month
Average payback time
13,516 kWh
Annual power production
5¢/kWh
Levelized cost of solar energy
32¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 9.02kW system
Life-time savings on this system over the next 25 years
$84,891
(Prices shown after repayments of capital)
131
Solar companies in San Jose, CA that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in San Jose
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
Find out what system size you need for your home
Going solar in California
Check out all of the ways energy providers of California can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Property Tax Exclusion for Solar Energy Systems | State | Property Tax Incentive |
| Sonoma County - Energy Independence Program | Local | PACE Financing |
| NEM 2.0 | State | Net Metering |
| Silicon Valley Power - Solar Electric Buy Down Program | Utility | Rebate Program |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
