For homeowners in PG&E territory, rising electricity costs make solar worth considering, especially if your property receives plenty of sunlight. The reason is simple: the more you pay for utility electricity, the more valuable it can become to generate your own. Using a blended PG&E electricity cost of approximately $0.45 per kWh as a starting point, compared with an estimated effective cost of approximately $0.20 to $0.22 per kWh for a properly designed solar and battery system, the potential difference can be significant.
Actual costs will vary based on your utility rate, energy consumption, property, system design, financing, and other factors. So, is solar worth it in PG&E territory in 2026? The answer starts with understanding what you’re already paying for electricity.
Compare the Cost of Solar to the Cost of PG&E Electricity
When considering solar, homeowners often focus on one question: How much does solar cost? A better comparison is: How much am I already paying for electricity, and what could it cost to generate more of that electricity myself?
Electricity is an ongoing household expense. You need it for air conditioning, lighting, refrigeration, appliances, pools, electric vehicles, and other everyday needs. You’re already paying for this energy, the question is where it comes from and how much you pay for it.
PG&E offers multiple residential rate plans, so there isn’t one electricity rate that applies to every homeowner. Rates can vary based on your plan, season, Time-of-Use period, consumption, and eligibility for discounted programs such as CARE.
That’s why your actual PG&E bill and annual electricity consumption should always be the starting point for a solar analysis.
What Does Solar Electricity Cost?
To compare solar with utility electricity, you can look at the cost of a residential solar energy system relative to the amount of electricity it’s expected to provide. A modern California solar project may include solar panels, inverters, battery storage, electrical equipment, engineering, permits, installation, monitoring, and interconnection. For systems we’re designing in today’s market, the estimated effective cost of producing and managing electricity can often fall around $0.20 to $0.22 per kWh, depending on the project.
Compare that with a blended PG&E cost of roughly $0.45 per kWh, and the potential financial advantage becomes easier to understand. For example, a homeowner averaging $500 per month for electricity spends approximately $6,000 per year. A properly sized solar and battery system can redirect a portion of that ongoing expense toward equipment installed at the home that produces and stores electricity. Instead of simply comparing a solar payment with a utility bill, consider the effective cost of each kilowatt-hour under both options.
Why Battery Storage Matters in 2026
Today’s solar-versus-PG&E comparison isn’t only about solar panels. Battery storage has become an important part of the equation. Under California’s current Net Billing structure, electricity exported to the grid isn’t necessarily valued at the same rate you pay when purchasing electricity from the utility. As a result, modern solar systems often prioritize using more solar electricity at home rather than sending excess production to the grid. The strategy becomes: home first, battery second, grid third.
During daylight hours, solar panels power the home. Excess production can charge the battery, and that stored energy can then be used when solar production declines. The goal is to reduce how much electricity you need to purchase from PG&E, particularly during more expensive periods.
Your Home and System Design Matter
Not every home will see the same solar results. Sunlight, roof orientation, available installation space, shade, roof pitch, electricity consumption, and future energy needs all affect production and financial performance.
South-facing roof areas can offer excellent solar exposure, while east- and west-facing areas can also perform well. If rooftop installation isn’t ideal, ground-mounted systems or solar patio structures may provide alternatives for some properties.
Proper sizing is equally important. If your home consumes 15,000 kWh annually but your solar system only produces 8,000 kWh, you’ll still need to purchase a significant amount of electricity from PG&E.
A solar design should therefore consider both current and future consumption. Plans to purchase an EV, install a pool or spa, switch from gas to electric appliances, expand your home, or increase air-conditioning use can all affect how much electricity you’ll need.
What About CARE Customers?
Homeowners receiving discounted electricity through programs such as CARE require a different financial calculation. If you’re paying substantially less for utility electricity, the immediate savings available from replacing that electricity with solar may also be lower. Solar could still make sense, but the potential payback period and overall economics will differ. This is another reason generic utility rates shouldn’t determine whether solar is right for you. The analysis should be based on your actual electricity costs.
What Is the Payback Period for Solar?
Payback period is another useful way to evaluate solar. Rather than looking only at the monthly payment, consider how long it may take for avoided electricity costs to equal the amount invested in the system. For a properly designed system with strong solar exposure, we commonly target an estimated six- to six-and-a-half-year payback period, although every home and project is different. System price, financing, battery capacity, electricity consumption, shade, roof orientation, and utility rates can all affect that timeline. After reaching the payback point, the solar equipment can continue producing electricity for years, which is where the long-term value becomes especially important.
Is Residential Solar Worth It in PG&E Territory?
For homeowners with good solar exposure, adequate installation space, and standard PG&E electricity rates, solar can offer a compelling alternative to purchasing nearly all household electricity from the utility. However, the system needs to be designed correctly. Solar production, battery capacity, current and future consumption, utility rates, available sunlight, and financing should all be considered together.
At Supreme Solar and Electric, we start with the homeowner’s actual electricity consumption and utility costs. We then evaluate the property’s solar potential, future energy needs, and battery requirements to determine whether solar makes financial sense.
Ultimately, comparing solar with PG&E isn’t just about the cost of installing solar. It’s also about the cost of continuing to purchase electricity from the utility year after year.
You’re already paying for electricity. Solar gives you the opportunity to invest in producing and storing more of it at your own home.