Solar resource
Your solar production in San Francisco
4.96 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — San Francisco, CA. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
Pacific Gas and Electric (PG&E) electricity rate
$0.3/kWh residential
- Utility
- Pacific Gas and Electric (PG&E)
- Residential rate
- $0.3/kWh (blended)
PG&E residential customers are subject to CPUC NEM 3.0 (Net Billing Tariff, NBT) for solar installations after April 14, 2023. Under NEM 3.0, excess solar exported to the grid is credited at the Avoided Cost Calculator (ACC) rate — approximately $0.04–$0.08/kWh — far below the retail rate. Self-consumed solar is still valued at the full retail rate (~$0.30/kWh). The annual savings estimate above assumes approximately 75% self-consumption. Battery storage (paired with SGIP rebate) significantly improves economics under NEM 3.0 by enabling more self-consumption.
Affiliate slot
Ready to go solar?
Compare quotes from vetted San Francisco solar installers — no obligation, no sign-up required to see prices.
Incentives
Available solar incentives in San Francisco, CA
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| California Property Tax Exclusion for Solar (R&T §73) | Exemption | 100% of added assessed value from solar installation | State |
| PG&E Net Billing Tariff (NEM 3.0) | Net Metering | Export credits at ~$0.04–$0.08/kWh (Avoided Cost Calculator rate) | Utility |
| Self-Generation Incentive Program (SGIP) — Battery Storage | Rebate | $150–$1,000 per kWh of battery capacity (income-qualified tiers higher) | State |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $19200
- Federal ITC (30%)
- −$5760
- Net system cost
- $13,440
- Installed cost per watt
- $3.2/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — California median installed cost for systems 3–10 kW. SF Bay Area labor and permitting costs are above the CA state median.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $1,685
- Simple payback period
- 8.0 years
- 25-year net savings
- $28685
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
Affiliate slot
Shop solar equipment
Browse solar panels, inverters, and mounting hardware for DIY or installer supply purchases.
How it works
How solar savings work in San Francisco
- Your panels capture SF's sun — despite the fog San Francisco averages just under 5 peak sun hours per day — lower than LA but still viable for solar. The marine layer suppresses output in June–August, but clear fall and spring days are highly productive. A 6 kW system in SF produces roughly 7,476 kWh per year — about 80% of a typical SF household's annual electricity use.
- An inverter converts DC to AC A string inverter or microinverters convert DC power from the panels to AC electricity your home uses. Modern inverters achieve 96–99% conversion efficiency.
- You use solar power instead of buying from PG&E Every kWh your system produces during daylight offsets what you would otherwise buy from PG&E at approximately $0.30/kWh. Self-consumed solar is the highest-value use of your production under NEM 3.0 — the export credit rate (~$0.04–$0.08/kWh) is far below the retail rate.
- Excess power exports to PG&E at the NEM 3.0 rate Under CPUC NEM 3.0 (Net Billing Tariff), excess solar exported to PG&E is credited at the Avoided Cost Calculator (ACC) rate — approximately $0.04–$0.08/kWh. This is dramatically lower than the retail rate under legacy NEM 2.0. Battery storage allows you to store excess daytime solar for evening use, increasing self-consumption and improving payback.
- You claim the 30% federal tax credit In the installation tax year, claim a 30% federal Investment Tax Credit on the full installed cost. On a $19,200 system, that's $5,760 off federal income taxes — reducing your net cost to $13,440.
- Your savings grow as PG&E rates rise PG&E rates have been rising steeply — SF residents paying above the national average today face compounding savings as rates increase. A 6 kW system nets roughly $28,685 over 25 years after repaying the installation cost.
FAQ
Common solar savings questions for San Francisco, CA
How much can I save with solar in San Francisco?
A 6 kW system in SF produces roughly 7,476 kWh/year. At PG&E's current blended rate of ~$0.30/kWh, self-consumed solar saves approximately $1,685/year (assuming ~75% self-consumption under NEM 3.0). After the 30% federal tax credit, net system cost is about $13,440, with a payback period of ~8 years and estimated 25-year net savings of $28,685.
What is NEM 3.0 and how does it affect SF solar savings?
NEM 3.0 (Net Billing Tariff, NBT) is the California Public Utilities Commission's replacement for NEM 2.0, effective April 15, 2023 for new solar installations on PG&E, SCE, and SDG&E. Under NEM 3.0, excess solar exported to PG&E is credited at the Avoided Cost Calculator (ACC) rate — approximately $0.04–$0.08/kWh — versus the retail rate (~$0.30/kWh) under NEM 2.0. Self-consumed solar is still valued at the full retail rate. The economics favor higher self-consumption, making battery storage (like Tesla Powerwall) more attractive.
Does SF's summer fog affect solar production?
Yes, but less than you might expect. SF's marine layer suppresses solar output primarily in June–August (the 'June gloom' effect). Monthly production is lower in summer than fall and spring, which is the opposite of most US cities. However, fall and spring days are often clear and highly productive. Annually, SF averages ~4.96 peak sun hours/day — lower than LA's 5.6 but still sufficient for a viable installation.
Is SGIP available to San Francisco homeowners?
Yes. California's Self-Generation Incentive Program (SGIP) provides rebates for battery storage systems (e.g., Tesla Powerwall, LG RESU, Enphase IQ Battery) installed with solar. Standard residential rebate is approximately $150/kWh; income-qualified and equity tiers are significantly higher. SGIP is particularly valuable for PG&E NEM 3.0 customers in SF — battery storage increases self-consumption, improving payback. Check current budget availability at selfgenca.com.
Does California have a property tax exemption for solar?
Yes. California R&T Code §73 excludes the incremental assessed value from a solar installation from property tax reassessment, through at least January 1, 2027. SF's effective property tax rate is approximately 1.16%; a 6 kW system adding $16,000–$22,000 to home value saves roughly $185–$255/year in property taxes.
How many solar panels does an SF home need?
A typical SF home using 500–700 kWh/month needs a 5–8 kW system — roughly 13–21 standard panels at 380–400 W each. SF's lower sun hours and summer fog mean a larger system is needed to match the output you'd get from a smaller system in LA. Use the calculator above with your monthly PG&E bill to estimate.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://www.pge.com/en/account/rate-information/residential-rates.html
- https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/demand-side-management/net-energy-metering/nem-revisit
- https://www.selfgenca.com/
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=73
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
Related tools
More free homeowner tools
Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-18.