Are you considering solar panels for your home in El Dorado Hills? With Pacific Gas & Electric (PG&E) rates around $0.323 per kWh, finding ways to reduce monthly energy bills is a priority for many. For systems installed in 2026, the financial benefits are strong, but the rules have changed. Understanding the real costs and how to maximize savings under PG&E's current structure is the key to a smart investment.
From rates to ROI—continue in the savings calculator.
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2026 Solar Panel Costs in El Dorado Hills
Here’s a look at the estimated costs for a typical solar installation in 2026. It's important to remember that the 30% federal tax credit for homeowners is no longer available for systems placed in service this year.
- Solar-Only System (6.7 kW): The upfront cost for a system of this size is approximately $17,085. This is designed to cover a large portion of your home's electricity needs during sunny hours.
- Solar + Battery System (6.7 kW panels & 10 kWh battery): To add energy storage, the combined system cost is estimated at $32,085. This setup provides both bill savings and backup power, a valuable feature during grid outages.
Solar is not only about today's bill. An owned system can be an attractive asset to potential buyers, supporting your home's long-term resale appeal.
Incentives & Tax Credits
Available Solar Incentives in 2026
Even without the federal tax credit, California homeowners have access to powerful incentives that support the switch to solar.
- Property Tax Exclusion: In California, the value that a solar system adds to your home is exempt from property taxes. This means you benefit from the increased home value without a corresponding tax hike.
- High Self-Consumption Value: With PG&E's high rates, the most powerful financial incentive is simply using the energy you generate. Every kWh of solar power you use at home is a kWh you don't have to buy from the utility at a premium price.
- Home Resale Value: Owned solar panels can be a significant selling point for a home, potentially increasing its market value and appeal to energy-conscious buyers.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
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How PG&E's Net Billing Program Works
It's crucial to understand that under PG&E's current net billing tariff, there's a big difference between the price of electricity you buy and the credit you get for electricity you sell. You might pay $0.323 per kWh to pull power from the grid, but when your panels produce extra power and send it to the grid, you may only receive a credit of around $0.113 per kWh.
This price gap makes it financially smart to store your excess solar energy in a battery. That way, you can use your own clean power in the evening instead of selling it for less and buying it back for more.
Projected Savings
Projected Annual Savings: Solar vs. Solar + Battery
The savings from solar in El Dorado Hills are directly tied to how much high-priced PG&E power you can avoid buying. This is where a battery makes a huge difference.
- A 6.7 kW solar-only system is estimated to save a homeowner around $1,970 annually, with a payback period of about 7.9 years.
- By adding a 10 kWh battery, you can store your excess solar power instead of selling it to PG&E for a low credit. Using that stored power at night boosts your annual savings to approximately $2,921. The payback period is about 8.9 years, but your yearly savings are significantly higher.
Beyond bill savings, a battery offers peace of mind with backup power during grid outages or Public Safety Power Shutoffs (PSPS), which can be a concern in the Sierra foothills.