How Solar Financing Makes Going Solar Affordable in California (No Upfront Cost Required)

Electricity rates in California keep climbing — and with PG&E raising rates by 13% in January 2025 and Southern California Edison (SCE) customers facing an 8% increase, more homeowners are asking: “I want solar, but how do I afford it?”

Here’s the good news: you don’t need to pay tens of thousands upfront to go solar anymore.

Thanks to flexible financing options, you can install panels with little to no money down, start saving on your energy bills immediately, and pay for your system over time.

California is blessed with sunshine almost year-round, but it also has some of the highest utility rates in the U.S. In fact, California residential electricity prices are around 33 cents per kilowatt-hour, which is nearly 80% higher than the national average of 18.5 cents/kWh (EIA, 2025).

When you add in PG&E and SCE’s 2025 rate hikes, many households are seeing their bills jump by $30–$50 or more per month, making solar not just environmentally smart — but financially necessary.

Solar financing lets you avoid the big upfront cost. Here are the main options:

1. Solar Loans – You borrow money to pay for the system, then repay monthly (similar to a car loan). The panels belong to you, and you still qualify for tax credits.

2. Solar Leases – You rent the panels from a solar company. They install and maintain everything, and you pay a fixed monthly fee (usually less than your utility bill).

3. Power Purchase Agreements (PPAs) – Instead of buying the panels, you agree to purchase the electricity they generate at a locked-in rate that’s cheaper than your utility.

With each of these, you can get started with little or no upfront cost, and immediately lower your PG&E or SCE bill.

Federal Solar Tax Credit (ITC): The U.S. government offers a 30% tax credit for solar installations through 2032. That means if your system costs $15,000, you can get $4,500 back at tax time.

California Solar Programs: Depending on where you live, you may also qualify for rebates or local incentives that reduce your out-of-pocket costs even further.

When you combine these incentives with solar financing, many homeowners find that their monthly solar payment + reduced energy bill is less than their old utility bill.

Let’s say your PG&E bill is currently $250/month after the January 2025 rate hike.

With solar financing:

Your loan payment might be $180/month, while your new PG&E bill drops to around $40/month (for grid connection fees and backup usage).

Net savings: $30/month immediately, and potentially $20,000+ over 10 years.

1. Net Energy Metering (NEM 3.0) – Get credits for extra power you send to the grid.

2. Self-Generation Incentive Program (SGIP) – Rebates for adding battery storage to your solar system.

3. Property Tax Exemption – Solar panels won’t increase your property taxes.

4. California Solar Initiative (CSI) – Rebates for eligible low-income households.

1. Get a Free Quote – Find out your savings and system size.

2. Choose a Financing Option – Loan, lease, or PPA (Power Purchase Agreement).

3. Install Solar – No upfront payment required.

4. Start Saving – Your solar bill replaces (and usually beats) your electric bill.

Does California still offer solar incentives in 2025

Yes. California homeowners can still take advantage of the Federal Solar Investment Tax Credit (ITC), which gives you 30% off your total solar system cost as a tax credit.

On top of that, many local utilities (PG&E, SCE, SDG&E, LADWP) have financing options and rebates for low-income households.

What are the average electricity rates in California right now?

According to the U.S. Energy Information Administration (EIA), as of 2025, California households pay an average of 29–32¢ per kWh — nearly double the U.S. national average (15¢/kWh). Rate hikes from PG&E and SCE have pushed bills even higher in 2024–2025.

How much can I save with solar financing in California?

With financing (loan or lease), most families save between $60–$120 per month starting from month one. Over the lifetime of your panels, savings can reach $30,000–$80,000, depending on system size and your utility provider.

What’s the difference between a solar loan and a solar lease?

Solar Loan: You own the panels, qualify for the 30% Federal ITC, and build long-term home equity.

Solar Lease/PPA: The solar company owns the panels, and you pay a lower fixed monthly rate for power. No tax credit, but little to no upfront cost.

Do PG&E and SCE customers get special solar programs?

Yes. Both utilities are part of California’s Net Energy Metering (NEM 3.0) policy, where you get credits for excess solar power you send to the grid. While credits are lower under NEM 3.0 compared to older plans, solar + battery storage still provides major bill relief.

How quickly can I get solar installed with financing in California?

Most financing-approved homeowners can get solar installed in 4–8 weeks, depending on permit approvals and installer availability in your city.

Solar financing in California means you don’t need a big savings account to start saving.

With $0 upfront, locked-in rates, and massive long-term benefits, switching to solar is one of the smartest financial moves for California homeowners in 2025.

Thinking of going solar and want help quantifying your savings? Get our free eBook on "How to Slash Your Energy Bills with a Solar Generator (Even If You Rent)". Here!