The cost of solar panels in Palo Alto, CA (2024)

Updated Dec 17, 2024

  • You'll pay an average of $12,137 to install a 5 kilowatt solar panel system in Palo Alto, CA, before incentives.

  • The federal investment tax credit (ITC) lowers that price by 30% of all your solar equipment and installation costs.

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Written by: Emily Walker

As of December 2024, the average solar panel system costs $2.43/W including installation in Palo Alto, CA. For a 5 kW installation, this comes out to about $12,137 before incentives, though prices range from $10,316 to $13,958. After the federal tax credit, the average price drops by 30%.

Average price of a 5 kW solar panel installation in Palo Alto, CA

Good Price
$10,316 or less
Market Average
$12,137
High Price
$13,958 or more

You'll probably pay even less than what we show here. It doesn't include the federal ITC or Palo Alto, CA state incentives, which will lower this price by at least a few thousand dollars.

Your solar panel cost depends on your system's size

It may seem obvious but larger solar panel systems cost more money. We use cost per watt ($/W) so you can easily compare quotes, controlling for slight variations in system size.

While a 5 kW system will only cost you $12,137 in Palo Alto, CA, doubling the system size effectively doubles the price, so you'll pay about twice that for a 10 kW system. The higher the price tag, though, the more you'll get back as a credit towards your federal tax bill.

Average solar cost by system size in Palo Alto, CA

System Size
System Cost
System Cost (after ITC)
3 kW$7,282$5,098
4 kW$9,710$6,797
5 kW$12,137$8,496
6 kW$14,565$10,195
7 kW$16,992$11,894
8 kW$19,419$13,594
9 kW$21,847$15,293
10 kW$24,274$16,992

Are solar panels worth it in Palo Alto, CA?

Solar panels are worth it in most areas, including Palo Alto, CA. Certain factors, including the cost of electricity, incentives, climate, and the angle at which the sun hits your roof impact how quickly you break even on your investment relative to other areas around the U.S. 

If you pay for your system with cash, you'll save about $100,883 over 25 years (the warranty term of most solar panels) on electricity costs with a 5 kW system in Palo Alto, CA. We generate this estimate based on real solar quote data from our Marketplace. It considers your system's cost, the federal tax credit, and inflation rates.

If you don't have access to net metering, these estimates don't account for utility net billing rates.

Payback Period
5.13 Years
25-Year Savings
$100,883
Cost-per-Watt
$2.43

If you can't shell out $12,137 in cash to pay for solar, don't sweat it. You can choose to finance your system with a loan instead. Some companies even offer $0-down loans so you can start saving on day one if your loan payments are less than your current electric bills. Just keep in mind that your long-term savings will be lower with a loan due to interest rates.

Find out what solar panels cost in your area in 2024
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The numbers we're showing are averages. The price you'll pay for solar depends on many factors unique to you and your home:

If you're looking for solar companies in CA, here are some popular suggestions:

  • Sunergy
    Fremont, CA
    Established 2015
    Elite+ Installer
    Sunergy is the #1 Rated Enphase Platinum Installer in CA. We strive to give every customer a personal "Mom and ...
    Elite+ Installer
    Screened & Verified
    5.0 /5.0
    47 Reviews

    Sunergy is the #1 Rated Enphase Platinum Installer in CA. We strive to give every customer a personal "Mom and ...
  • NRG Clean Power
    San Jose, CA
    Established 1987
    Elite+ Installer
    As an award winning solar company, NRG Clean Power is driven by a bold mission to revolutionize the energy landsc...
    Elite+ Installer
    Screened & Verified

    As an award winning solar company, NRG Clean Power is driven by a bold mission to revolutionize the energy landsc...
  • IntegrateSun, LLC
    San Jose, CA
    Established 2010
    Elite+ Installer
    IntegrateSun is an Earth based company that is successfully navigating oily waters. We chose to be in the busines...
    Elite+ Installer
    Screened & Verified

    IntegrateSun is an Earth based company that is successfully navigating oily waters. We chose to be in the busines...
  • Demand Construction
    Fremont, CA
    Established 2019
    Elite+ Installer
    Join the green revolution with Demand Construction! We're the fastest-growing green energy construction company i...
    Elite+ Installer
    Screened & Verified
    5.0 /5.0
    94 Reviews

    Join the green revolution with Demand Construction! We're the fastest-growing green energy construction company i...
  • American Array Solar and Roofing
    Livermore, CA
    Established 2012
    Elite Installer
    With 80 years of combined experience at American Array Solar and Roofing, we put our customers first! We service ...
    Elite Installer
    Screened & Verified

    With 80 years of combined experience at American Array Solar and Roofing, we put our customers first! We service ...

Solar is a major purchase, but you can get the price tag to come down a bit by being an educated shopper. Taking advantage of incentives and rebates and shopping around for quotes can bring down your cost of solar in Palo Alto, CA.

Take advantage of federal and local solar incentives

As long as your federal tax bill is high enough, you can take advantage of the federal tax credit in Palo Alto, CA. This incentive allows you to apply 30% of your solar installation and equipment costs toward your federal tax bill. If the amount exceeds your tax bill, you can roll over the remaining credit to the following year. Many states also offer great local incentives and rebates.

Get quotes from multiple installers

Comparing multiple solar quotes can save you money through competition and transparency. Each additional quote you receive for solar will help you find the right solar panel system at the right price.

This is where EnergySage can help. With funding from the Department of Energy’s SunShot Prize, EnergySage opened the country’s first (and now the largest) marketplace for home solar panel installations. We gather custom solar quotes from local installers on your behalf and put them in an easy-to-compare format. When you compare quotes for solar panels on the EnergySage Marketplace, you can expect to see prices up to 20% lower than if you work with a single solar company.

Why shop with EnergySage?

Save time & money

Request free quotes from vetted installers in minutes

Unbiased support

Our expert Energy Advisors will help you make the right decision

Trusted, local installers

We pre-screen and monitor all of our partners

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