Solar Panel Cost Guide in San Luis Obispo, CA (2024 Update)
- San Luis Obispo Solar Installation Cost: $6,986
- 25-Year Savings: $20,835
- Payback Period: 6.6 Years
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Updated February 03, 2024
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Average Cost of Solar Panels in San Luis Obispo
We break down average solar pricing in San Luis Obispo.
The national average cost of solar panels is $2.66 per watt, but in San Luis Obispo it’s 3 per watt.To cover the typical energy usage of the average home in San Luis Obispo, most homeowners require a 2.9-kilowatt system. Using the figure above, a solar installation costs about $6,986, or $9,990 before the federal solar tax credit of 0 is applied.
Remember that the numbers above are only averages. The price you’ll end up paying for solar may vary based on your household energy use, the type of equipment you want, your solar contractor and more.Many homeowners find installing a solar panel system is a rewarding investment. The average homeowner in San Luis Obispo can save about $35,000 on their energy bills over 20 years.
You can click the button below to get connected with a top solar installer in San Luis Obispo for a quote for your home.
Solar savings over time in San Luis Obispo
Year | Return on Investment |
---|---|
1 years | $-5,448 |
3 years | $-2,372 |
5 years | $704 |
7 years | $3,780 |
9 years | $6,855 |
11 years | $9,931 |
13 years | $13,007 |
15 years | $16,083 |
17 years | $19,159 |
19 years | $22,234 |
21 years | $25,310 |
23 years | $28,386 |
25 years | $31,462 |
Top Solar Installers in San Luis Obispo
Installing solar panels on your own can be a stressful undertaking, which is why using a solar installation company is a good option for many homeowners. The payback period on a solar system will vary based on factors like your roof configuration and energy usage, but going with a solar company can help you reach a break-even point sooner. Your provider will be able to help you apply for incentives available in your area.
Working with a licensed solar installer can make going solar easier. Here are our recommendations:
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
See all of the solar companies in San Luis Obispo
Factors that Affect Solar Panel Costs in San Luis Obispo
While the average cost of a solar system in San Luis Obispo is $6,986, your actual cost may be above or below the average. There are many factors that can have a major impact on the cost of a solar panel installation. Below are some of the more crucial things to consider.
Solar Equipment
The size of the solar system you need for your home, which is measured in kilowatts, is the most significant cost factor to consider. For every additional kilowatt you need, your total will most likely increase by around $3,470. There are many different solar panel brands and the one you pick also changes the cost. Generally, the brands that have better efficiency tend to also be more expensive. Plus, the type of equipment you’re looking to install can affect your total cost. If you just need panels, your system will be far less expensive than if you also need solar batteries or an electric vehicle charger.
Solar Financing Terms
If paying for solar panels in cash is difficult, solar loans are a popular option because they lower your upfront costs and let you pay for your system over a term of, on average, between five and seven years.You’ll have to consider the long-term cost of financing options, including the total interest you’ll pay over the length of the loan. If you’re only able to get a high-interest loan, then your total can be hundreds or even thousands of dollars above the equipment and labor cost. Making a larger down payment or finding a solar loan with a low APR could reduce your costs considerably.
Solar Panel Installation Company
The solar company you opt for to handle your switch to renewable energy can have an effect on your total costs. There are about 3 solar installation companies in San Luis Obispo, and each can charge varying amounts for labor and equipment.Some companies only sell high-efficiency and high-priced products — like Maxeon solar panels from SunPower or Tesla Powerwall batteries — so choosing those installers will generally come at a higher cost. It’s best to do some research and go with the company that has the products, warranties and services you’re looking for and also is within your budget.
Solar Panel Cost Data by System Size
System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
---|---|---|---|---|
6 kW | $3.61 | $15,157 | $39,777 | 6.9 years |
8 kW | $3.54 | $19,821 | $53,424 | 6.8 years |
10 kW | $3.47 | $24,290 | $67,266 | 6.6 years |
12 kW | $3.40 | $28,565 | $81,302 | 6.5 years |
14 kW | $3.33 | $32,646 | $95,533 | 6.4 years |
16 kW | $3.26 | $36,532 | $109,957 | 6.2 years |
18 kW | $3.19 | $40,224 | $124,576 | 6.1 years |
20 kW | $3.12 | $43,722 | $139,390 | 6.0 years |
How to Save on Solar Panels
The solar installer you go with will be a major factor in determining not only your total costs, but also the kinds of solar panel brands, warranties, and other equipment you have access to. When choosing a solar company, there are several important things you should keep in mind, such as:
- Warranty: Each company may offer different kinds of warranties that cover different things. A 25-year, all-inclusive warranty is the gold standard.
- Contract: It’s important to look over your solar installer’s contract closely to understand what services they will provide, what the warranty covers and what you can expect about the cost.
- Solar Panel Brands: Different companies have different brands and types of panels. If you know you want a specific brand, make sure the solar installer you’re considering has it.
- Reputation: Companies that have been in business for many years likely have a high reputation. This is important because it ensures that it will not only see your solar project through, but will also provide quality aftercare and customer service, such as part repairs and replacements.
Best National Provider
SunPower
- Most efficient panels on the market
- National coverage
- Cradle to Cradle sustainability certification
- Great warranty coverage
- Expensive
- Customer service varies by local dealer
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best for Leasing
Sunrun
- Expansive service area
- Many financing options
- Some reported issues with customer service
- Some reported issues with door-to-door sales
EcoWatch's San Luis Obispo, CA Solar Cost FAQs
What is the average cost of installing solar panels in San Luis Obispo?
The average cost of solar panels in San Luis Obispo is about $17,350 for a 5-kW system and $34,700 for a 10-kW system before the ITC, but the real cost will depend on certain factors such as the type of solar panels you want, what size system you need and how much energy you consume.
Is it better to lease or buy solar panels in San Luis Obispo?
Leasing solar panels can be an option if you are unable to pay upfront or secure a solar loan, but since you don’t own the system, you can’t take advantage of many solar incentives. Also your property value won’t increase, so you’ll have less savings over time. If you can afford to buy a solar system upfront, then buying is the better option if you want the most financial benefits from going solar.
Can solar panels significantly reduce my energy bills?
It is possible to eliminate your electricity bills with solar panels, but for most homeowners in San Luis Obispo, that will require at least a 10-kW system. Not all homes can accommodate that size system, so you’ll want to check with a local solar installer to see how many panels can fit on your roof.
How long do solar panels last in San Luis Obispo?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a larger amount of energy production.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert's opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.