What it costs, what's permitted, and what to ask before you hire.
Last verified: 2026-05-31 · Well-sourced
Likely first step
Get itemized quotes from 2–3 licensed contractors
Panel / electrical
Verify your panel capacity with an electrician
Complexity
Verify locally
Permit likelihood
Confirm with your building department
Rebate sensitivity
Verify current programs
Best first call
A licensed contractor for an itemized quote
Utility impact
Electric & gas: PG&E
Pacific Gas & Electric
As of 2026-05-30, PG&E's default residential electric plan is E-TOU-C, a time-of-use plan with a 4-9 PM peak window. Alternatives include E-TOU-D (5-8 PM peak), EV2-A (whole-home TOU optimized for EV charging, lowest rates 12 AM-3 PM daily), and E-ELEC (a newer flat-rate-style plan for fully-electric and NEM 3.0 solar households, and the default plan when registering new residential solar under NEM 3.0). In March 2026, PG&E restructured residential rates under AB 205's income-graduated fixed charge framework, adding a flat Base Services Charge (~$24/month for non-CARE households; CARE/FERA pay a reduced fixed fee) paired with a per-kWh price cut. Households planning heat-pump HVAC, EV charging, or whole-home electrification may want to compare E-TOU-C, EV2-A, and E-ELEC; verify current rates and plan rules at the provider site.
$18,000–$32,000 — Installed cost for a 6–8 kW DC, single-family Bay Area residential rooftop solar PV system on a typical asphalt-shingle or composition roof, mid-range monocrystalline modules and string or microinverter, pre-incentive. Range corresponds to roughly $3.00–$4.00 per watt installed at the system sizes most common in coastal CA. Excludes battery storage (see bay-area-cost-battery-storage), roof replacement, structural reinforcement, and electrical service upgrades.
Section 25D Residential Clean Energy Credit (solar PV)
Expired Dec 31, 2025. For 2023–2025: 30% of total installed cost, no cap. EXPIRED: This federal credit ended Dec 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Expenditures made after Dec 31, 2025 do not qualify — for §25D, the IRS treats the expenditure date as the date the installation is placed in service (completed), not the date of payment. A homeowner who paid a deposit in 2025 but whose system was placed in service in 2026 does not qualify. For installations placed in service during 2023–2025, the credit applied to solar PV systems supplying electricity to a U.S. residential dwelling used by the taxpayer as a residence (principal residence not required; second homes qualified; rentals not occupied by the taxpayer did not qualify), satisfying applicable fire and electrical codes, with installation costs included in the credit basis. The credit was nonrefundable with carryforward. Homeowners with eligible 2025 placed-in-service installations may still claim the credit on their 2025 federal tax return. Verify with a qualified tax professional.
California Net Billing Tariff (NEM 3.0) — solar export compensation framework
Policy framework, not a direct rebate. Excess solar generation exported to the grid is compensated at a rate reflecting the time-varying grid value of that generation (Avoided Cost Calculator methodology), rather than at the retail electricity rate that NEM 2.0 used. Net export compensation under the Net Billing Tariff is typically materially lower than under NEM 2.0; pairing solar with battery storage may materially affect project economics under this framework. POLICY IN EFFECT — NOT A REBATE: The Net Billing Tariff (NBT), commonly called 'NEM 3.0,' is the current Net Energy Metering framework for new residential solar interconnections in California, adopted by CPUC Decision 22-12-056 and effective for applications submitted on or after 2023-04-15. It applies to new customer-generator interconnections in the three large investor-owned utility territories: Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). LADWP and other publicly owned utilities operate their own net-metering tariffs and are not covered by NBT. Under NBT, onsite solar generation first offsets the customer's own consumption; excess generation exported to the grid is compensated at a time-varying export rate based on the grid's avoided cost rather than the retail rate. Existing NEM 1.0 / NEM 2.0 customers are generally grandfathered under the legacy tariff for a defined period from their original interconnection date — verify against the customer's utility for the legacy term. Homeowners considering new residential solar in PG&E / SCE / SDG&E territory should model project economics specifically under NBT, with and without paired battery storage, before signing a contract.
As of 2026-05-31, residential solar PV installations in San José require an electrical permit and a building permit (for structural roof attachment). San José participates in SolarAPP+ (an automated plan-review platform) which can issue instant approvals for standard residential rooftop PV systems up to 38.4 kW installed by a licensed contractor. SolarAPP+ defaults to traditional plan review for PV-plus-storage systems, older homes with unusual roof structures, or systems outside the standardized scope. Permits are submitted via the SJPermits.org online portal; contractor registration and SolarAPP+ training may be required for the licensed contractor to use the instant-approval path. Verify the system meets SolarAPP+ eligibility criteria with the Building Division and contractor before relying on the instant-approval timeline.