CALIFORNIA SOLAR GUIDE · 2026

Best Solar Companies in California (2026)

Californians pay some of the most expensive residential power in America — and under NEM 3.0, the grid pays pennies for what you send back. That combination didn't kill solar here. It rewrote how a good system is designed.

This guide is built on the CPUC's own rate data — not installer marketing — and covers the battery-first math, what's left of state incentives, and who we'd actually get quotes from.

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34.5¢
SCE average rate per kWh, Mar 2026
+101%
SCE rate growth over the last 10 years
$255/mo
Avg. hot-zone SCE bill (~700 kWh)
363,196
SCE customers de-energized, Jan 2025 shutoffs

Sources: Public Advocates Office (CPUC), Q1 2026 Electric Rates Report; CPUC PSPS post-event reporting, Jan 2025.

The bill is the sales pitch

Ten years ago a kilowatt-hour from Southern California Edison cost about 17 cents. In March 2026 the average residential rate hit 34.5 cents — up 57% in just the last five years. Since 2014, SCE rates have climbed 97% while general inflation rose 39%. San Diego households have it worse: SDG&E's average rate is now 45.7¢/kWh after an 11.4% jump on a single day in January 2026.

The strain shows: CPUC filings report 17% of SCE customers are behind on their bills, owing an average of $833. When people ask whether solar still "pencils out" in California, this chart is most of the answer — every rate increase shortens the payback on power you generate yourself.

What a kilowatt-hour costs SCE customers
10¢20¢30¢2016: 17.2¢ per kWh17.2¢20162021: 22¢ per kWh22¢20212023: 31.7¢ per kWh31.7¢20232026: 34.5¢ per kWh34.5¢2026

Average residential rate, ¢/kWh. 2026 is the reported average; earlier years are derived from the report's 3-, 5-, and 10-year growth figures. Source: Public Advocates Office (CPUC), Q1 2026 Electric Rates Report.

NEM 3.0

Sell low, buy high — unless you store it

Since April 2023, new California solar customers are credited at the grid's "avoided cost" for exported power — around 8¢/kWh on average, roughly 75% less than the old near-retail credit. Meanwhile SCE's summer peak rate between 4 and 9pm runs about 58¢/kWh. Export your surplus at 2pm and buy it back at 7pm, and you're trading a dollar for about 14 cents.

The NEM 3.0 gap, ¢ per kWh
Grid pays you (export credit): 8¢ per kWhGrid pays you (export credit)8¢You pay at summer peak (4–9pm): 58¢ per kWhYou pay at summer peak (4–9pm)58¢

Avg. NEM 3.0 export credit vs. SCE TOU-D-4-9PM summer peak rate.

The battery-first rule

Store your midday surplus and spend it on the evening peak instead of selling it for pennies. This is why battery attachment on new California installs has gone from about 10% to roughly 60% since the rules changed — and why a California quote without a storage option (or a clear reason to skip it) is a yellow flag.

A battery earns its keep twice here: it arbitrages the rate gap daily, and during a Public Safety Power Shutoff — 363,196 SCE customers were de-energized in January 2025 alone — it can keep essentials running while the lines are down.

Who we'd get quotes from in California

Every company below is active in California. Given NEM 3.0, weight their storage lineup and TOU-aware system design as heavily as price — and verify any bidder's C-46 or C-10 license on the CSLB site before signing.

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How we rank: Rankings reflect equipment quality, warranty terms, pricing transparency, and verified customer satisfaction. Updated monthly. Not influenced by paid placements.

Advertiser Disclosure: SolarRatings.org earns referral fees from featured installers. Compensation may influence rankings and placement.

InstallerRating & ReviewsEquipment & TechWarrantyKey Pros & ConsGet Rates
#1 RatedSunrunEditor's Pick
4.6
4,200 reviews
Tier-1 Monocrystalline (Q-Cells, Costco partnerships)
Efficiency: 20.6% – 21.4%
10-year roof penetration, 25-year panel warranty
  • Industry-leading leases/PPAs
  • Excellent battery selection (Tesla, LG)
  • Higher purchase pricing
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#2 RatedTesla SolarBest Value
4.4
3,100 reviews
Tesla proprietary low-profile panels & Powerwall 3
Efficiency: 20.0% – 21.0%
25-year panel warranty, 10-year Powerwall warranty
  • Lowest price per watt
  • Beautiful aesthetic integration
  • Customer support is heavily automated
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#3 RatedBlue Raven Solar
4.6
1,800 reviews
Tier-1 High-Efficiency panels
Efficiency: 20.2% – 21.2%
25-year manufacturer, 10-year workmanship
  • BluePower 18-month free power program
  • In-house financing options
  • Leasing options are limited
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#4 RatedADT Solar
4.3
2,100 reviews
Tier-1 Enphase microinverters & premium panels
Efficiency: 19.8% – 20.8%
25-year Enphase warranty, 25-year roof guarantee
  • Backed by trusted ADT security name
  • High-quality Enphase components
  • Premium pricing tier
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What's still on the table

California incentives in 2026

The incentive landscape thinned out after 2025, but two programs still materially change California solar economics — both, fittingly, reward storage and ownership rather than exports.

SGIP battery rebate — the Self-Generation Incentive Program pays up to $200 per kWh of installed battery capacity for eligible households, with larger equity and resiliency budgets for qualifying customers and high-fire-threat areas.
Property tax exclusion — an active solar energy system is excluded from your assessed value, so the improvement doesn't raise your California property tax bill.

* The federal residential solar tax credit (Section 25D) expired December 31, 2025 — be wary of any quote that still includes it. Program rules and budgets change; confirm current eligibility with a certified tax professional before you sign a contract.

FAQ

California solar, answered

Yes — but the winning system design changed. Exported power now earns roughly 8¢/kWh instead of near-retail credit, so the value comes from using your own solar power instead of buying SCE or PG&E power at 30–58¢. In practice that means sizing the system to your actual usage and pairing it with a battery so evening consumption is covered. Homes that do this still cut utility spend dramatically; homes that export most of their production see much weaker returns than they would have before April 2023.

See the NEM 3.0 math for your address

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