Solar Companies in California

California is the undisputed leader in residential solar adoption, with over 1.9 million rooftop solar installations as of 2025. The state's combination of abundant sunshine (5.8 peak sun hours statewide, higher in the south) and the nation's highest electricity rates creates a compelling economic case. Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E) all charge tiered rates that can exceed $0.40-0.50/kWh for heavy users, making solar a financial necessity for many households.

The transition from NEM 2.0 to NEM 3.0 (Net Billing Tariff) in April 2023 was a major shift for California solar. Under NEM 3.0, excess solar electricity is credited at roughly $0.05-0.08/kWh rather than the retail rate, dramatically changing the economics. The result has been a surge in solar-plus-battery installations, as homeowners seek to store daytime generation for evening use rather than exporting to the grid. The Self-Generation Incentive Program (SGIP) offers substantial rebates for battery storage, partially offsetting this change.

Despite NEM 3.0, solar remains cost-effective for most California homeowners simply because electricity rates are so high. A 6kW system at around $13,440 after the federal credit typically pays for itself in 5-7 years. Los Angeles, San Diego, San Jose, Sacramento, and the Bay Area remain the largest residential solar markets in the country. Municipal utilities like LADWP and SMUD operate under their own net metering programs, which are often more favorable than the IOUs.