Solar power in Morgan Hill, California
PG&E offer an excellent net metering program in Morgan Hill.
There is also the federal solar tax credit allowing for a large portion of the system cost — 26% in 2020, and 22% in 2021 — to be claimed as a deduction to federal taxes. This incentive can be used in increments over many years and doesn't impose any size restrictions, it'll always cover the set percentage no matter the size.
With major Investor Owned Utilities such as PG&E fighting to end net metering, incentives certainly won't get any better, so don't wait too long!
Net Metering Broken Down
Net metering credits each kWh of unused solar generation exported to the grid at the same value as a kWh drawn from the grid making it easier to pay off your power bill.
In Northern California, solar production is excellent, and usually more power is exported than drawn from the grid. The excess kWhs are valued at the retail power price. Credit can be used on future bills up to one year later or at the end of the 12 month billing cycle PG&E can put the money in your account.
Sadly, with NEM-2 rules net metering returns are about 10% lower since new solar customers must switch to time of use billing. Thankfully, the decline in equipment costs and great sun exposure still mean that solar is a great investment in Morgan Hill.
The average cost of installing residential solar panels in Morgan Hill,
California in 2025 is
$2.72 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Morgan Hill, CA
is $13,600.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in California is only 573kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Morgan Hill solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our California solar savings calculator can do this because it contains a database of the electric rates charged by City of Palo Alto, Pacific Gas & Electric Co, City of Santa Clara (Silicon Valley Power)
How much can solar panels save you in Morgan Hill
What does the cost of a real solar system look like?
Facts about installing a 10.73kW solar system in Morgan Hill, CA
This system would offset 100% of your energy usage if your typical monthly bill is $232, however your situation may vary so try our Morgan Hill solar calculator to get a result tailored to you.
$19,851
Net cost of system
6 Years 3 Months
Average payback time
15,296 kWh
Annual power production
5¢/kWh
Levelized cost of solar energy
32¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 10.73kW system
Life-time savings on this system over the next 25 years
$95,216
(Prices shown after repayments of capital)
133
Solar companies in Morgan Hill, CA that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Morgan Hill
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
Find out what system size you need for your home
Going solar in California
Check out all of the ways energy providers of California can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Property Tax Exclusion for Solar Energy Systems | State | Property Tax Incentive |
| Sonoma County - Energy Independence Program | Local | PACE Financing |
| NEM 2.0 | State | Net Metering |
| Silicon Valley Power - Solar Electric Buy Down Program | Utility | Rebate Program |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
