High electricity bills from PG&E are a familiar problem in Marin County. While rooftop solar is a powerful way to offset these costs, the rules have changed. In 2026, the value of solar depends heavily on using the energy you generate yourself. Sending surplus power back to the grid no longer provides the 1-for-1 credit it once did, making home battery storage a critical part of the financial equation for many homeowners.
From rates to ROI—continue in the savings calculator.
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Estimated Solar & Battery Costs in San Rafael (2026)
For a typical San Rafael home, a 4.5 kW solar system is sized to offset the average electricity bill. The estimated gross cost for this system is around $11,475.
Adding a home battery to maximize your savings increases the total investment. A combined 4.5 kW solar system with a 10 kWh battery has an estimated gross cost of $26,475. This setup not only increases your energy independence but also provides valuable backup power during outages.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal tax credit for homeowners is no longer available for systems installed in 2026, California still offers a key financial benefit:
- Property Tax Exclusion: Installing a solar system will not increase your property taxes. The value added to your home by the solar installation is excluded from your property's assessed value, a benefit currently available for systems installed through at least mid-2026.
The primary financial driver remains the direct offset of PG&E's high electricity rates. A battery system enhances this by maximizing self-consumption, which is now the most effective way to save money with solar in California.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
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Understanding Export Rates with PG&E
Under California's current Net Billing Tariff (NBT), the electricity you send back to the grid is credited at a rate much lower than what you pay for electricity. We've modeled the export value at approximately $0.113 per kWh, while the retail rate is over $0.32 per kWh. This difference is why storing and using your own solar power with a battery is so effective. It allows you to avoid selling your valuable solar energy for pennies on the dollar and instead use it to power your home in the evening, displacing the most expensive grid power.
Projected Savings
How Solar Creates Value with High PG&E Rates
With PG&E's retail electricity rate around $0.323 per kWh, every kilowatt-hour of solar energy you use at home delivers significant savings. A solar-only system is modeled to save approximately $1,354 annually, leading to a payback period of about 7.7 years.
Pairing solar with a battery dramatically improves these savings. By storing excess solar energy from the day to use at night, you avoid selling it to the grid for a low price and buying it back later at the high retail rate. This strategy boosts annual savings to an estimated $1,952. While the initial investment is higher, the long-term value is greater, especially if utility rates continue to climb. An owned solar system may also support resale appeal for your home down the line.