High and unpredictable electricity bills from PG&E are a major concern for homeowners in Foster City. In 2026, rooftop solar offers a powerful way to reduce those costs, but the strategy has shifted. Under PG&E's current rules, maximizing the energy you use directly from your panels is the key to savings, which makes pairing solar with a battery a very popular and practical choice.
From rates to ROI—continue in the savings calculator.
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Estimated 2026 Solar Costs in Foster City
For an average home in the area, a 4.5 kW solar system is a common starting point. The costs below reflect the total price before any savings. It's important to remember that the 30% federal tax credit for homeowners expired at the end of 2025 and does not apply to systems installed now.
- 4.5 kW Solar-Only System: The estimated gross cost is $11,475.
- 4.5 kW Solar System + 10 kWh Battery: The estimated gross cost is $26,475.
The battery system provides significant additional savings by storing daytime solar energy for you to use in the evening, plus the added security of backup power.
Incentives & Tax Credits
Key California Solar Benefit for 2026
While major tax credits are no longer the primary driver, California still offers a crucial incentive: the Property Tax Exclusion for Active Solar Energy Systems. This state-level rule means that when you install a solar system, your home's assessed value won't increase for property tax purposes. In a high-value real estate market like San Mateo County, this prevents a significant tax hike.
Furthermore, an owned solar system can be a strong selling point for future buyers, potentially enhancing your home's resale appeal. It signals lower, more predictable utility costs, a feature many homebuyers value.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
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How PG&E's Net Billing Tariff Works
Under PG&E's Net Billing Tariff (NBT), the value of solar energy you export to the grid is much lower than the price you pay for electricity. When your panels generate surplus power during the day, PG&E credits you at a reduced, wholesale-based rate (modeled here at $0.11/kWh). But when you pull power from the grid at night, you pay the full retail rate.
This structure makes it financially smart to store your excess solar power in a battery. By doing so, you can use your own stored energy in the evening instead of selling it cheap and buying it back expensive. A battery helps you keep the full value of every kilowatt-hour your panels produce.
Projected Savings
Potential Savings with Solar in Foster City
Your savings come directly from avoiding PG&E's high retail electricity rates, which average around $0.32 per kWh. The more solar power you can use in your home, the more you save. This is not only about today's bill; if grid electricity from PG&E becomes more expensive over time, your rooftop generation will offset that inflation and become even more valuable.
- A solar-only system is estimated to save about $1,354 per year, with a payback period of approximately 7.7 years.
- By adding a battery, you can use more of your own clean energy, boosting annual savings to around $1,952. This extends the payback period to about 10.5 years but delivers greater long-term financial benefits and energy independence.