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2.5-year payback, $0.234/kWh avg rate, and 3,400 sun hours/year make California one of the best states for commercial solar.
Avg Rate
$0.234/kWh
Sun Hours/Year
3,400
Net Cost (100kW)
$65K
Payback
2.5 yrs
Commercial solar in California offers strong returns with an average commercial electricity rate of $0.234/kWh and 3,400 annual sun hours. A typical 100kW system costs $175K before incentives, with a net cost of $65K after the 30% federal ITC, achieving payback in 2.5 years.
Available up to 1 MW - NEM 3.0 time-of-use export
Net billing tariff with time-varying export rates
Self-Generation Incentive Program for battery storage
Commercial PACE financing available statewide
Total Cost
$175K
Net Cost
$65K
Annual Savings
$39K
Payback
2.5 yrs
PG&E
SCE
SDG&E
LADWP
SMUD
100 kW
System Cost
$162K
Federal ITC
-$65K
Net Cost
$59K
Payback
1.6 yrs
Annual Savings
$37,110/yr
25-Year ROI
2227%
CO2 Offset
1555 tons
NEM 3.0 reduces export credits but commercial solar remains highly profitable due to California's high electricity rates ($0.23+/kWh). Pairing solar with battery storage maximizes self-consumption and avoids demand charges.
Site-specific pricing with exact incentive calculations. No obligation.