For homeowners in San Carlos dealing with high PG&E electricity rates, going solar in 2026 is about maximizing self-consumption. With the major federal tax credit no longer available for new systems, the financial strategy has shifted. The goal is now to generate your own power and use it directly, especially by storing it in a battery, rather than selling it back to the grid for a low credit. This approach helps insulate your budget from rising utility costs and provides a more predictable path to energy savings.
See payback and NEM impact with your inputs in the calculator.
Open calculatorBenchmark Cost Analysis
Estimated Solar System Costs in San Carlos (2026)
The cost of a solar installation depends on system size and whether you include battery storage. Based on local electricity usage, here are two common scenarios for a San Carlos home:
- Solar-Only System (4.5 kW): The estimated gross cost is around $11,475. This system is sized to offset a significant portion of a typical local electricity bill.
- Solar + Battery System (4.5 kW panels with a 10 kWh battery): The estimated gross cost is approximately $26,475. This package is recommended to maximize your savings under current PG&E rules by storing daytime solar energy for use during expensive evening peak hours.
These figures are modeled estimates before any local incentives. The final price can vary based on your specific roof, equipment choices, and installer.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal solar tax credit is no longer available for systems placed in service in 2026, California homeowners still benefit from key state-level policies that make solar a practical investment.
The most significant financial benefit is the California Property Tax Exclusion for Active Solar Energy Systems. This state rule means that adding a solar panel system will not increase your property taxes. An owned solar system can also support resale appeal, making it a valuable long-term home improvement that pays for itself through energy savings without adding to your tax burden.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
Recommended 🔋
Understanding Export Compensation with PG&E
Under California's current Net Billing Tariff (NBT), the value of solar energy you send back to the grid has changed. When your panels produce more electricity than your home is using, that excess power is exported to PG&E.
However, the credit you receive for that exported power (modeled here at around 11.3 cents per kWh) is much lower than the retail price you pay to buy electricity from the grid (around 32.3 cents per kWh). This difference is why using your own solar power directly—or storing it in a battery for later—provides the most value. A battery allows you to keep your valuable solar energy for yourself instead of selling it to the utility for a fraction of its retail worth.
Projected Savings
How Solar Can Reduce Your PG&E Bills
Installing solar panels is a direct way to lower your monthly electricity expenses. By generating your own power, you purchase less from PG&E, especially during sunny afternoons. However, adding a battery significantly enhances these savings.
- With a solar-only system, you could see an estimated annual savings of $1,354, leading to a payback period of about 7.7 years.
- Adding a battery storage system increases the estimated annual savings to $1,952. While the initial investment is higher, the payback period is still a reasonable 10.5 years, and it provides backup power during outages.
The battery increases savings by allowing you to avoid buying expensive grid power in the evening. If grid electricity from PG&E becomes more expensive over time, rooftop generation can offset costlier power in future years, making the investment even more valuable.