With high PG&E electricity rates, many San Lorenzo homeowners are looking for ways to reduce their monthly bills. Rooftop solar offers a direct path to generating your own power, but the financial equation has changed for systems installed in 2026. The key is understanding how to maximize the value of your solar production under California's current Net Billing Tariff, where using your own power is far more valuable than sending it back to the grid. For many, this makes pairing solar with a battery the most effective strategy.
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Open calculatorBenchmark Cost Analysis
Solar System Pricing in San Lorenzo (2026)
Without a federal tax credit, the upfront cost is the number to focus on. The price depends on whether you include battery storage. For a typical San Lorenzo home with a $178 monthly electric bill, here are the modeled estimates for a 4.6 kW system:
- Solar-Only System Cost: The estimated gross cost is $11,730.
- Solar + Battery System Cost: Adding a 10 kWh battery for energy storage brings the estimated gross cost to $26,730. The battery allows you to store solar energy generated during the day and use it in the evening, significantly reducing how much expensive power you need to buy from PG&E.
These figures are based on an average cost of $2.55 per watt. An owned solar system can also be a valuable long-term feature, potentially supporting your home's resale appeal.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal tax credit for residential solar is no longer available for systems installed in 2026, California homeowners still benefit from a significant state-level incentive:
- Property Tax Exclusion: In California, installing a solar system will not increase your property taxes. The added value of the solar installation is excluded from your home's valuation for tax purposes, a benefit that can save you thousands over the life of the system.
The primary financial driver for solar is now direct bill savings, achieved by generating and using your own clean energy rather than relying on tax credits.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
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Understanding Export Rates with PG&E
Under California's Net Billing Tariff (NBT), the value of solar energy you send back to the grid is much lower than the retail price you pay for electricity. You might pay PG&E over $0.32 per kWh for electricity in the evening, but the surplus solar you export during the day could be credited at a modeled rate of around $0.11 per kWh.
This structure strongly encourages 'self-consumption'—using the solar power you generate directly in your home. A battery is the most effective tool for this, as it stores your cheap, self-generated power for when you need it most, maximizing your savings and minimizing what you give back to the grid for a low credit.
Projected Savings
Estimated Annual Savings with Solar
Your savings are driven by how much expensive PG&E electricity you can avoid buying. Because exporting surplus solar power earns a low credit, using that power yourself provides the most value. This is where a battery makes a major difference.
- A solar-only system is modeled to save approximately $1,354 per year, with an estimated payback period of 7.9 years.
- A solar and battery system increases self-consumption, boosting modeled annual savings to $1,952. The higher upfront cost results in a slightly longer payback period of 10.6 years, but delivers greater long-term savings and provides backup power during outages.
If grid electricity from PG&E becomes more expensive over time, the power you generate on your roof will become even more valuable, potentially shortening your payback period.