Solar Savings in San Francisco: What It Actually Costs and What You'll Save in 2026

San Francisco is a compact, densely built city of about 808,000 people on PG&E territory. While the city gets less sun than inland California, PG&E's high rates at 41.5¢/kWh mean even smaller solar systems produce strong returns. The city's older housing stock and fog patterns create unique considerations for solar.

What San Francisco Residents Actually Pay for Electricity

The average San Francisco household pays approximately $220 per month for electricity, or about $2,640 per year. Bills are lower than inland cities mainly because of the mild climate — most homes don't have AC. But PG&E's rate of 41.46¢/kWh is among the highest in the nation.

PG&E's $24 Base Services Charge (March 2026) applies to all customers. Peak TOU rates reach 55-67¢/kWh during evening hours.

Step 1: Check Your PG&E Rate Plan (Free, 10 Minutes)

Before anything else, log into your PG&E account and check which rate plan you're on. PG&E offers multiple TOU plans including EV-specific plans. Log into your account and use the rate comparison tool to see which plan saves you the most based on your actual usage patterns.

If you can shift heavy electricity use (laundry, dishwasher, EV charging, pool pump) to off-peak hours (before 4 PM or after 9 PM), you can save 10-15% just by being on the right TOU plan.

Step 2: Check If You Qualify for Discounts

PG&E offers income-based discount programs that many qualifying San Francisco households haven't applied for. CARE provides a 30-35% discount on your entire bill if your household income is below certain thresholds. FERA offers an 18% discount for families of 3+ with slightly higher income limits. Check eligibility and apply at PG&E's assistance page.

If anyone in your household relies on electricity-dependent medical equipment (CPAP, home dialysis, powered wheelchair, etc.), you may qualify for Medical Baseline, which gives you additional electricity at the lowest rate tier.

San Francisco's Solar Potential

San Francisco averages approximately 2,600 hours of sunshine per year with 4.5 peak sun hours per day. While this is below the state average due to fog, the city's south-facing hillsides and sunnier neighborhoods (the Mission, Bernal Heights, Bayview) get significantly more production. You can check your specific home's solar potential for free at Google Project Sunroof.

What Solar Costs in San Francisco (2026 Numbers)

The average San Francisco household needs a 5.5 kW solar system to cover their electricity usage. Here's what that looks like across different options.

Costs are approximate based on 2026 EnergySage data for San Francisco. Actual costs vary by roof, system size, and provider. PPA monthly costs include remaining utility charges ($24 fixed charge + any grid usage).

To compare quotes from local installers for a purchased system, EnergySage's San Francisco page lets you get multiple quotes side by side. Always get at least 3 quotes before committing to any option.

HOA Rules for Solar in San Francisco

Many San Francisco neighborhoods have HOAs, and homeowners often worry about getting approval for solar panels. Here's what you need to know: under California's Solar Rights Act (Civil Code § 714), your HOA cannot prohibit you from installing solar panels. They can impose reasonable aesthetic restrictions (like panel placement preferences), but any restriction that increases your system cost by more than $1,000 or reduces efficiency by more than 10% is legally unenforceable.

In practice, most San Francisco HOAs have streamlined their solar approval process because so many homeowners are going solar. You typically submit an architectural review application, and if the HOA doesn't respond with a written denial within 45 days, your application is deemed approved by default. If your HOA gives you pushback, the law is clearly on your side — and they can be liable for damages plus your attorney's fees if they unreasonably block your installation.

NEM 3.0 (Net Billing) and Battery Storage in San Francisco

San Francisco is on PG&E's NEM 3.0 (Net Billing) tariff, which means the excess solar energy you send back to the grid earns only 5-8¢/kWh — far less than the 41.5¢+ you pay to buy it back during peak hours. This is why battery storage has become essential for maximizing savings.

With a battery, you store excess daytime solar and use it during peak evening hours (4-9 PM) when PG&E rates are highest. A solar + battery system typically offsets 70-90% of your grid usage, compared to 40-60% with solar alone. For more detail on how this works, see our NEM 3.0 guide.

California's Self-Generation Incentive Program (SGIP) may still offer rebates for battery storage — check current availability at selfgenca.com. SGIP funds are limited and allocated first-come, first-served.

When Solar Doesn't Make Sense in San Francisco

If your roof is heavily shaded or north-facing, you are in a high-fog neighborhood, your roof needs replacement soon, or your bill is under $80/month. SF's mild climate means some households have genuinely low bills.

San Francisco-Specific Tips

Fog zone awareness: Solar production varies dramatically by neighborhood in SF. The Sunset and Richmond districts get more fog than the Mission, Potrero Hill, or Noe Valley. Always check Google Project Sunroof for your specific address.

Older roofs: Many SF homes have older roofs. If your roof needs replacement in the next 3-5 years, handle that first. Some solar installers offer combined roof + solar packages.

Frequently Asked Questions

Is the federal solar tax credit still available?

The residential tax credit (Section 25D) expired at the end of 2025. If you buy a system outright, there is no federal credit. However, the commercial credit (Section 48E) is still available, which is how PPA providers can offer $0-down solar at rates below utility prices. See our full guide on post-tax-credit options.

The Bottom Line for San Francisco

Despite the fog reputation, San Francisco's high PG&E rates make solar financially compelling in many neighborhoods. The key is checking your specific roof exposure.