Solar Panel Cost Guide in Palo Alto, CA (2024 Update)
- Palo Alto Solar Installation Cost: $7,249
- 25-Year Savings: $18,517
- Payback Period: 7.5 Years
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Average Cost of Solar Panels in Palo Alto
Find out what the average cost of installing solar panels is in Palo Alto.
In Palo Alto, solar panels cost about 3 per watt on average.To account for the typical energy usage of the average home in Palo Alto, most homeowners require a 3.0-kilowatt system. Using the figure above, a solar installation costs around $7,249, or $10,366 before the federal solar tax credit of 0 is applied.
The prices above are just estimates to give you an idea of the cost of a solar energy system. The exact cost of making the switch to solar can vary depending on several factors, such as what size system you need, your energy usage and what solar installer you go with.But, once you've paid the upfront cost of installation, the payback for most homeowners is typically rewarding, with a net average savings of about $31,000 over 20 years on electricity bills.
To get a free quote from a vetted solar company in Palo Alto, you can click the button below.
Solar savings over time in Palo Alto
| Year | Return on Investment |
|---|---|
| 1 years | $-5,770 |
| 3 years | $-2,813 |
| 5 years | $145 |
| 7 years | $3,102 |
| 9 years | $6,060 |
| 11 years | $9,017 |
| 13 years | $11,975 |
| 15 years | $14,932 |
| 17 years | $17,889 |
| 19 years | $20,847 |
| 21 years | $23,804 |
| 23 years | $26,762 |
| 25 years | $29,719 |
Top Solar Installers in Palo Alto
Many homeowners choose to hire a solar installation company since trying to put up solar panels on your own can be a labor-intensive endeavor. Also, companies with a good reputation that are more expensive upfront could actually save you money in the long term because of their warranties, repair services and expert design.
Working with a licensed solar installer can help you make the most of your investment in solar. Here are our recommendations:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
See all of the solar companies in Palo Alto
Factors that Affect Solar Panel Costs in Palo Alto
There are many factors that can influence your total installation cost, such as the size of your system, the equipment you choose, your financing options and the specific company that does the installation.
Solar Equipment
One of the most significant factors to consider when it comes to the cost of installing solar panels is the size of the solar system, which is measured in kilowatts (kW). The more energy your household consumes, the larger your system will likely need to be. You can expect to pay about $3,470 per kilowatt in Palo Alto.The kind of solar panels and equipment you want is another factor that will largely affect costs. Solar panels that are more efficient, like monocrystalline panels, tend to be more costly. Furthermore, solar equipment consists of more than just the solar panels themselves. You’ll also need to make decisions about the kind of racks used to mount the panels, inverters, solar batteries, etc. It’s important to take all of this into consideration when searching for a solar system that’s in your budget.
Solar Financing Terms
Most solar companies in Palo Alto offer solar loans, which reduce the initial cost of installing solar panels.It’s wise to add the interest you’ll pay in your final cost estimate. If you can afford to pay a larger down payment, you can reduce your total costs and the amount of time it’ll take to pay off the loan.
Solar Panel Installation Company
The solar installation company you select will influence your total cost to adopt solar energy. Different companies will charge different amounts for the equipment and labor.The company’s size can sometimes play the most considerable role in your costs. Larger national companies, like SunPro and Sunrun, often have lower prices because they have more resources and better pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or promotion can bring their pricing lower to compete with bigger companies.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $3.61 | $15,157 | $33,539 | 7.8 years |
| 8 kW | $3.54 | $19,821 | $45,107 | 7.6 years |
| 10 kW | $3.47 | $24,290 | $56,870 | 7.5 years |
| 12 kW | $3.40 | $28,565 | $68,826 | 7.3 years |
| 14 kW | $3.33 | $32,646 | $80,978 | 7.2 years |
| 16 kW | $3.26 | $36,532 | $93,323 | 7.0 years |
| 18 kW | $3.19 | $40,224 | $105,863 | 6.9 years |
| 20 kW | $3.12 | $43,722 | $118,597 | 6.7 years |
How to Save on Solar Panels
The company that does your system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Because picking a company can be difficult, we have some tips to help you, such as:
- Contract: Read the contract terms closely to make sure you understand the cost breakdown, project completion timeline incentives and warranties.
- Solar Panel Brands: Each solar panel brand and kind has varying levels of quality, longevity and efficiency. They will come at different costs as well. The company you choose plays a role in which solar panel brands you have access to.
- Installation Process: Get detailed information from your solar company about the installation process and what to expect, such as when the site survey will be completed and how long it will take.
- Warranty: A high-quality company rises above other companies by providing the gold standard warranty — a 25-year, all-inclusive warranty covering parts, labor and performance.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
Best Social Impact
Palmetto Solar
- Expansive service area
- Makes charitable contributions
- Certified B Corp
- No leases or PPAs
- Quality of installation may vary by location
EcoWatch's Palo Alto, CA Solar Cost FAQs
What is the average cost of installing solar panels in Palo Alto?
This is a difficult question to answer precisely, because the cost depends on many factors. Broadly speaking, it costs about $17,350 for a 5-kW system and $34,700 for a 10-kW system after the ITC is applied. It will be more expensive if you want other solar equipment or higher quality panels, or if you have higher-than-average energy needs. Conversely, you can spend less if you want a smaller solar panel system or cheaper solar panels.
Is cost the most important consideration when buying solar panels?
The initial cost is a key factor to consider, but whether it’s the most important for you depends on your reasons for going solar. In cities where rooftop space is limited, efficiency can trump the cost. Other factors that are important to keep in mind are the quality and durability of your solar panels.
How much can I save on electricity bills after switching to solar?
Solar panels can potentially eliminate your electricity bills depending on where you’re located and the efficiency of your system. Even if it doesn’t get rid of them completely, you can save a lot of money on your bills, about $1,623.19 per year.
How many solar panels do I need to power my home?
The exact number of solar panels you need depends on your household energy needs and how much sunlight your roof gets. You can look at your energy bills for the past year to get an idea of the solar system size you'll need. The average household has to install between 20 and 35 panels to cover their typical energy usage.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.