For homeowners in Millbrae, high Pacific Gas & Electric (PG&E) bills are a constant pressure. With average monthly costs around $178, many are looking for ways to reduce that expense. In 2026, rooftop solar remains a powerful tool, but the financial strategy has shifted. Since the 30% federal tax credit for homeowners is no longer available for new systems, the focus is now on maximizing the value of the energy you produce right at home.
This means understanding how to best use your solar power to offset PG&E's expensive electricity, especially during peak evening hours. The key is self-consumption.
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2026 Solar Panel Costs in Millbrae
The estimated cost for a professionally installed rooftop solar system in Millbrae depends on whether you include a home battery. These figures are based on a system designed to offset the typical local electricity bill.
- Solar-Only System (4.7 kW): The estimated gross cost is around $11,985. This system is designed to generate power during the day to cover your home's immediate needs.
- Solar + Battery System (4.7 kW solar with 10 kWh battery): The estimated gross cost is $26,985. Adding a battery allows you to store excess solar energy generated during the day and use it at night, which is critical for maximizing savings under PG&E's current rules.
Note: These costs are estimates before any local incentives. Since the federal solar tax credit for homeowners has expired, this gross cost is also the net cost.
Incentives & Tax Credits
California Solar Incentives for 2026
While the well-known 30% federal tax credit for homeowners is no longer available for systems installed in 2026, California residents still have access to a significant state-level benefit:
- Property Tax Exclusion: In California, installing a solar system will not increase your property taxes. The added value of the solar installation is excluded from your home's valuation for tax purposes, a benefit currently scheduled to last for systems installed through mid-2026.
Beyond direct incentives, an owned solar system can be a strong asset. It may support your home's resale appeal, as future buyers can benefit from the locked-in energy costs and reduced utility bills.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
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Understanding Export Rates with PG&E
Under California's Net Billing Tariff (NBT), the value of solar energy has two parts. The most valuable energy is the power you generate and use at home, which allows you to avoid buying electricity from PG&E at their high retail rate of around $0.32 per kWh.
Any excess power your system generates is sent to the grid. However, you are compensated for this exported energy at a much lower rate, modeled here at approximately $0.11 per kWh. This difference is why a battery is highly recommended. By storing your excess solar power instead of exporting it for a low credit, you can use it later and avoid paying PG&E's high evening rates.
Projected Savings
How Much Can You Save on Your PG&E Bill?
Your actual savings depend on how much of the solar energy you consume directly. With California's net billing tariff, the power you use yourself is far more valuable than the power you export to the grid.
- With a solar-only system, the modeled first-year savings are approximately $1,354, leading to a payback period of about 8.1 years.
- Adding a battery storage system significantly increases your ability to use your own solar power, boosting estimated first-year savings to $1,952. While the initial investment is higher, the enhanced savings help manage the payback period, estimated at 10.6 years, and provide backup power during outages.
Solar is not only about today's bill. If grid electricity from PG&E becomes more expensive over time, rooftop generation can offset costlier power in future years, making your investment more valuable.