High electricity bills from PG&E are a familiar challenge in East Palo Alto, with average costs around $178 per month. While rooftop solar is a powerful way to reduce that expense, the rules have changed. In 2026, the value of solar depends heavily on how you use the energy you generate, not just how much you produce. Sending excess power back to the grid no longer provides the bill-slashing credits it once did, making energy storage a central part of the conversation.
Compare bill offset and incentives—open the calculator next.
Open calculatorBenchmark Cost Analysis
2026 Solar & Battery Pricing in East Palo Alto
Based on local data, here are the estimated costs for a system designed to offset a typical home's electricity usage. Keep in mind these figures do not include any federal tax credits, which are no longer available for systems placed in service in 2026.
- A 4.5 kW solar-only system has an estimated gross cost of $11,475.
- A 4.5 kW solar system with a 10 kWh battery has an estimated gross cost of $26,475.
The addition of a battery increases the upfront cost, but it significantly improves the system's financial performance under current PG&E rules by maximizing the value of the solar energy you produce.
Incentives & Tax Credits
California Solar Incentives for 2026
With the primary federal tax credit for homeowners no longer in effect, the financial benefits of going solar in California now center on state-level policies and direct bill savings.
- Property Tax Exclusion: A key benefit is California's property tax exclusion for active solar systems. Installing a solar system will not increase your property taxes, ensuring the value it adds to your home doesn't come with an added tax burden.
- High Bill Offset: The most significant financial incentive is avoiding PG&E's high retail electricity rates, which are modeled here at over 32 cents per kWh. Every kilowatt-hour of solar energy you use at home is one you don't have to buy from the utility.
An owned solar system may also support resale appeal, as it offers future buyers protection against rising utility costs.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
Recommended 🔋
Understanding PG&E's Net Billing Rules
Under the current rules, the electricity you export to the grid is worth significantly less than the electricity you buy from PG&E. This is a shift from older net metering programs. Our model estimates the export compensation rate at around 11 cents per kWh, while the retail rate to purchase electricity is over 32 cents per kWh.
This difference is why self-consumption is so important. A solar battery allows you to store your excess daytime energy instead of selling it to the grid for a low price. You can then use that stored energy at night, avoiding the need to buy expensive power from PG&E. This strategy dramatically increases your bill savings and energy independence.
Projected Savings
How a Battery Maximizes Your Solar Savings
Installing solar panels changes the math on your PG&E bill. With today's net billing structure, using your own solar power is far more valuable than exporting it. A battery lets you store the solar energy your panels generate during the day and use it during the evening, when electricity from the grid is most expensive.
- The solar-only system is modeled to save about $1,354 annually, with a payback period of around 7.7 years.
- The solar and battery system increases those savings to $1,952 annually, with a payback period of about 10.5 years.
While the payback is longer, the battery system delivers greater long-term savings and provides valuable backup power during outages. If grid electricity from PG&E becomes more expensive over time, rooftop generation can offset costlier power in future years, making both systems more valuable.