Solar Panel Installation Cost in San Diego: What You Need to Know

Why San Diego is the Perfect Place for Solar

San Diego is one of the best cities in the U.S. to go solar. With abundant sunshine year-round and high electricity rates, switching to solar power can lead to significant energy savings. But how much does it cost to install a solar panel system in San Diego?

This guide breaks down solar panel costs, pricing factors, incentives, financing options, and return on investment (ROI).

Average Cost of Solar Panel Installation in San Diego

The price of solar varies based on system size, panel efficiency, and installation complexity. On average, San Diego homeowners can expect:

• $2.37 per watt, including installation
• $11,859 for a 5 kW solar panel system before incentives
• $8,301 after applying the 30% federal tax credit

A 7.2 kW system typically costs $17,064 upfront or $11,945 after incentives. The good news is that solar panel costs have been decreasing, making solar more accessible.

Factors Affecting Solar Installation Costs

1. System Size & Energy Use

Larger systems cost more but provide greater long-term energy savings. A home with higher electricity usage will require more panels, increasing the overall cost.

2. Type & Quality of Panels

• Monocrystalline Panels: High efficiency, slightly more expensive
• Polycrystalline Panels: Lower efficiency, more affordable
• Premium Brands (SunPower, LG, etc.): Higher cost but better performance

3. Roof Condition & Complexity

The shape, material, and slope of your roof impact installation costs. Spanish tile or steep roofs require additional labor and mounting hardware, raising the total price of solar installation.

4. Permitting & Regulatory Costs

California has a cap on residential solar permit fees (typically under $450), but additional costs like electrical panel upgrades may apply.

5. Installation Company & Labor Costs

Choosing a reputable installation company can impact the price of solar. Local and national providers offer different pricing, warranties, and financing options.

Solar Incentives & Rebates in San Diego

Federal Solar Tax Credit (ITC)

The Residential Clean Energy Tax Credit offers significant savings for homeowners. The credit amounts are:

• 30% for systems installed from 2021 to 2032
• 26% for systems installed in 2033
• 22% for systems installed in 2034

To claim the tax credit, homeowners must complete IRS Form 5695. Learn more on the Energy Star website.

California Solar Incentives

• California Solar Initiative (CSI): Rebates for low-income households
• Property Tax Exclusion: Solar installations do not increase property tax assessments

Net Energy Metering (NEM 3.0)

• Credits homeowners for excess solar energy sent to the grid
• Under NEM 3.0, exported energy earns lower credits, making battery storage more beneficial

Self-Generation Incentive Program (SGIP)

Homeowners adding battery storage (like Tesla Powerwall) can receive rebates to reduce costs.

Financing Options for Solar Panels in San Diego

Homeowners can choose from multiple financing options to make solar more affordable.

Cash Purchase

• Maximizes long-term savings
• Eliminates interest payments

Solar Loans

• Finance over 5 to 20 years with fixed monthly payments
• Homeowners can still qualify for tax credits

Solar Leases & Power Purchase Agreements (PPAs)

• No upfront costs
• Homeowner pays for the electricity generated, but does not own the system
• Leases and PPAs do not qualify for tax incentives

PACE Financing

• Allows repayment through property tax assessments
• No credit score requirement

ROI & Long-Term Savings of Going Solar

How Much Can You Save?

• San Diego homeowners can save $30,000 - $50,000 over 25 years
• A properly sized solar panel system can reduce 50-90% of monthly electricity bills

Payback Period

Most homeowners recoup their solar investment within 4-8 years.

Increased Home Value

Homes with solar panels sell for an average of $4,000 - $6,000 more per installed kilowatt.

Environmental Impact

A typical residential solar panel system in San Diego can offset over 140 tons of CO₂ emissions over its lifetime.

Is Solar Worth It in San Diego?

Want to see how much you could save? Use Google Sunroof to estimate your solar savings based on your home's location and roof exposure.

San Diego homeowners benefit from high energy rates, generous incentives, and year-round sunshine. Even with net metering changes, the ROI remains strong, and energy independence is within reach.

To find out how much you can save, get a free, no-obligation quote from Semper Solaris—a veteran-owned, American-made solar installation company dedicated to helping homeowners achieve energy independence. Learn more about solar installation in San Diego.

Switch to solar today! Contact Semper Solaris for a free consultation.