Sky-high PG&E bills are a reality in the Mission District. With electricity rates soaring past $0.27/kWh and unpredictable Public Safety Power Shutoffs, homeowners are seeking control. Since California's Net Billing (NEM 3.0) policy was introduced, the strategy for saving money with solar has fundamentally changed. Going solar is no longer just about panels; it's about pairing them with a battery to achieve true energy independence and meaningful savings.
From rates to ROI—continue in the savings calculator.
Open calculatorBenchmark Cost Analysis
What Do Solar Panels Really Cost in the Mission District?
Focusing on the complete solution for NEM 3.0, a solar-plus-battery system is the standard for financial success. A typical system has a gross cost of around $23,500. After applying the 30% federal tax credit, the net cost drops to approximately $16,450. While a 'solar-only' setup might look cheaper upfront at $8,050 net, it fails to deliver significant savings under PG&E's current rules, making the battery an essential, non-negotiable part of the investment.
Incentives & Tax Credits
Key 2026 Solar Incentives for San Francisco
- 30% Federal Solar Tax Credit: The most significant incentive, this allows you to deduct 30% of your total system cost (panels and battery) directly from your federal taxes. For a $23,500 system, that's a $7,050 credit.
- Property Tax Exemption: Your property taxes will not increase, even though the solar and battery system adds significant value to your home.
Net Metering: Pacific Gas & Electric (PG&E)
NEM 3.0 (2023)
Critical 🔋
Understanding PG&E's Net Billing (NEM 3.0)
Under the NEM 3.0 tariff, PG&E pays you a dramatically reduced rate for any surplus electricity you export to the grid—often around $0.05-$0.08/kWh. However, you still buy electricity from them at the full retail rate of $0.27/kWh or more. This is why a battery is critical: it allows you to store your own solar energy produced during the day and use it yourself in the evening, avoiding the terrible export rates and the high cost of grid power entirely.
Projected Savings
Projected Monthly & Annual Savings
Installing a solar and battery system effectively severs your dependence on PG&E's punishing Time-of-Use rates. Instead of selling your excess solar power for pennies, you store it and use it during the expensive 4-9 PM peak. This strategy unlocks annual savings of about $1,594, with a system payback period of around 10 years. In contrast, a system without a battery would save significantly less, drastically extending its payback time and exposing you to future rate hikes.