Solar · 7 min read

Is Solar Worth It in California in 2026?

An honest look at solar economics in California after NEM 3.0 — and why batteries are now part of the answer.

The short answer

Yes — but the math has changed. Under NEM 3.0, exporting solar production back to the grid pays roughly 75% less than NEM 2.0 did. The systems that pencil out today are sized to self-consume production through battery storage rather than exporting to the utility.

Who solar still works for

Solar still pays back well for California homeowners on SDG&E, PG&E, and SCE who use significant electricity in the evening (EV charging, AC, pool pumps) and pair the system with battery storage. SMUD customers in Sacramento also see strong economics.

Who should think twice

Homeowners planning to move within 3–4 years, those with low electricity usage, or those with heavily shaded roofs may not see attractive payback periods. SOLITO models your actual utility bill before recommending a system.

Frequently asked

What's the payback period for solar in California?

With battery storage and current rates, most California homeowners see payback in 7–11 years, depending on utility, usage pattern, and incentives.

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