Is Solar Worth It in California? The 2025 Homeowner’s Guide

California Home saving with solar power!

If you’re a California homeowner, chances are you’ve asked yourself: “Is solar still worth it?” With all the headlines about utility rate hikes, changes to net metering, and new programs popping up left and right, it’s a fair question. Spoiler alert: the answer is still YES—solar is worth it in California. Let’s break it down.

Why California Is Still the #1 State for Solar

California isn’t just the Sunshine State’s rival—it’s the Solar State. Here’s why:

• Soaring Utility Rates: Pacific Gas & Electric (P.G.&E.), Southern California Edison (SCE), and SDG&E have all pushed through record rate increases over the past few years. And they’re not stopping anytime soon. Homeowners are paying 40–80% more for electricity than they were just a few years ago.

• Year-Round Sunshine: More than 250 days of sunshine means your solar system isn’t sitting idle. Even during winter, your panels keep working.

• Energy Independence: Pair solar panels with a backup home battery, and you’re no longer chained to the utility company. You control your energy, your bill, and your future.

What About Net Billing 2.0?

A lot of homeowners have heard about NEM 3.0 (Net Billing Tariff) and worried that solar savings are gone. Here’s the truth:

• Under NEM 3.0, exporting power to the grid pays less than it used to.

• BUT—homeowners with solar plus storage (aka a solar system with a backup battery) can store excess energy and use it when rates are highest.

• That means you’re playing the utility company’s game smarter, not harder.

So yes, the rules changed. But with the right setup, you can still slash your bill and shield yourself from future rate hikes.

Power Purchase Agreements (PPAs) Explained

Not every homeowner wants to buy a solar system outright—and that’s where Power Purchase Agreements (PPAs) come in.

• With a PPA, a solar provider installs the system at no cost to you.

• You agree to purchase the power the system produces at a rate lower than your utility’s rates.

• No big upfront investment, just lower monthly bills from day one.

For homeowners who want the benefits of solar without the hassle of ownership, PPAs are an easy win.

The Case for Backup Home Batteries

If the last few wildfire seasons and rolling blackouts taught us anything, it’s this: California homeowners need backup power.

• A home battery like the Tesla Powerwall, SolarEdge or Enphase IQ Battery stores extra energy from your solar panels.

• When the grid goes down, your lights, fridge, Wi-Fi, and AC can keep running.

• With time-of-use rates, batteries also let you shift usage to avoid expensive peak-hour pricing.

Think of it as your energy insurance policy—one that pays for itself in savings and peace of mind.

The Bottom Line: Is Solar Worth It in California?

Let’s put it plainly:

• Electric rates are climbing (again).

• Solar plus batteries = control and savings.

• PPAs keep solar accessible for homeowners who don’t want upfront costs.

Even with policy changes, solar remains one of the smartest financial decisions for California homeowners. Whether you’re looking to save money, gain energy independence, or protect your family during blackouts, solar is still worth it—and then some.

Ready to See Your Savings?

At Watts Home Services LLC, we design solar and storage systems tailored to your home, your needs, and your budget. Whether you’re interested in ownership, financing, or a no-cost PPA, we’ll walk you through your options honestly—no gimmicks, no false promises.

👉 Schedule your free solar consultation today and find out just how much you can save.