With the main federal solar tax credit gone, is rooftop solar still a smart investment for South Yuba City homeowners in 2026?
For many households facing high Pacific Gas & Electric Co rates, the answer is yes—but the strategy has changed. With electricity costing around $0.32/kWh, the intense Central Valley sun hitting your roof is a valuable asset. The key is no longer just about producing power, but about using as much of that power as possible yourself to offset PG&E's expensive grid energy, especially during long, hot summers that keep air conditioners running.
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Open calculatorBenchmark Cost Analysis
2026 Solar Panel Costs in South Yuba City
Without the federal tax credit, the upfront cost is the net cost. For a typical 6.1 kW system sized for a local home, the price is straightforward. Adding a battery increases the initial investment but also significantly boosts your annual savings by helping you avoid sending low-value power to the grid.
- Solar-Only System (6.1 kW): The estimated cost is around $15,555.
- Solar + Battery System (6.1 kW panels, 10 kWh battery): The estimated cost is around $30,555.
These figures represent the full installed price before any local rebates, which may vary.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal incentive for systems placed in service has ended, California homeowners still benefit from important state-level policies that support the economics of going solar.
- Property Tax Exclusion: This is a major benefit. In California, adding a solar system does not increase your property's assessed value for tax purposes. You get the benefits of solar without a higher tax bill.
- High Retail Electricity Rates: PG&E's high rates are, in effect, an incentive. Every kilowatt-hour of solar energy you produce and use at home is a kilowatt-hour you don't have to buy at a premium price.
- Local Rebates: Occasionally, local utilities or air districts may offer smaller rebates for solar or battery storage. These programs change frequently and are not guaranteed, but are worth checking at the time of installation.
Net Metering: Pacific Gas & Electric Co
Net Billing (low export)
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Understanding Export Rates vs. What You Pay PG&E
Under California's net billing system, the electricity you send to the grid is worth significantly less than the electricity you buy from it. This is the single most important factor in deciding whether to add a battery.
- Retail Rate (what you pay): You buy electricity from Pacific Gas & Electric Co for approximately $0.323 per kWh.
- Export Rate (what you're paid): When your solar panels produce more energy than you're using, that excess power is sent to the grid. PG&E credits you only around $0.113 per kWh for it.
Because your exported energy is worth less than a third of what you pay for grid energy, storing it in a battery for later use provides far more value than selling it back to the utility.
Projected Savings
How Solar Creates Value with PG&E's Current Rules
A solar system's value now comes from maximizing what you use in-house, a concept called self-consumption. A solar and battery combination is designed specifically for this. By storing your excess solar energy from the daytime, you can power your home through the evening instead of buying expensive electricity from PG&E. This strategy leads to much higher savings over the year.
- A 6.1 kW solar-only system is estimated to save a South Yuba City homeowner around $1,773 annually, with a payback period of about 8.0 years.
- Pairing that same system with a 10 kWh battery increases the estimated annual savings to $2,611. While the payback period extends to 9.4 years, the long-term savings are substantially higher.
If grid electricity from PG&E becomes more expensive over time, rooftop generation can offset costlier power in future years, making the system an even better hedge against inflation.