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Installing home solar in San Luis Obispo County costs $20,080 on average. This is before rebates and tax credits, though, meaning homeowners could install solar for a net cost of around $14,000!
San Luis Obispo isn’t an especially large county, but homeowners here sure keep solar installers busy! There were more than 300 home solar installations completed and interconnected in the first three quarters of 2022 alone, adding to the thousands of systems already hooked into the grid.
How much does home solar cost in San Luis Obispo, though? Most homeowners are looking at a gross cost of between $18,000 and $34,000, with an average cost of around $20,000.
See also: What are California’s solar incentives?
Below, we break down the cost of home solar in San Luis Obispo, looking at the price per Watt for systems with and without storage. We also work out the likely solar payback period for these systems, accounting for different rates of inflation and the cost of electricity in San Luis Obispo.
The cost of home solar in San Luis Obispo
One of the best ways to estimate the cost of going solar is to look at the cost of systems actually installed and connected to the power grid. To do this, we use data from California Distributed Generation Statistics.
Specifically, I ran the numbers for residential rooftop solar installations in San Luis Obispo County in the first three quarters of 2022, omitting systems combining solar with wind power or other power sources. I also removed the data for systems that included electric vehicle charging, and systems that were installed by homeowners or third-party owned.
All of the systems were interconnected with PGE (Pacific Gas and Electric), which is the main electricity provider in San Luis Obispo. So, while these calculations don’t include every installation in the county, they offer a fairly decent snapshot of the cost of going solar in San Luis Obispo.
Caveats over; what does the data say?
In 2022, the average system size for a home solar energy system in San Luis Obispo County was 4.95 kW AC and the average cost was $20,080. This gives us a cost of $4.04 per Watt, which is lower than in Sacramento, San Francisco, and Los Angeles. The data includes 39 home solar installations with battery storage and 252 without.
Systems with storage had an average system size of 6.41 kW AC and a gross average cost of $34,083. This works out to a cost per Watt of $5.32.
For systems without storage, the average cost was about $16,000 less, at $18,677. This was for systems of 473 kW AC. That means the cost of solar without storage in San Luis Obispo in 2022 broke the $4 mark, coming in at just $3.95 per Watt!
Here’s the summary of the average cost and size of rooftop residential solar installations in San Luis Obispo County in 2022.
| USD | average system size DC (kW) | average system size AC (kW) | Cost per Watt (AC) installed USD | |
| Average cost of residential rooftop solar energy systems installed and interconnected in 2022 | 20,080 | 5.08 | 4.95 | 4.06 |
| Average cost of residential rooftop solar energy systems without storage installed and interconnected in 2022 | 18,677 | 4.85 | 4.73 | 3.95 |
| Average cost of residential rooftop solar energy systems with storage installed and interconnected in 2022 | 34,083 | 6.55 | 6.41 | 5.32 |
The average cost of home solar as seen in these calculations is a little different to estimates given on many online solar marketplaces.
EnergySage, for instance, suggests a cost of just $2.88/W, for a total gross system cost of $14,400 for a 5 kW rooftop array. This is about one dollar per Watt off from our calculations based on many more systems actually interconnected by PGE.
Getting really granular
The cost of installing home solar in San Luis Obispo depends greatly on factors including:
- The size of the system
- The complexity of the installation
- Which installer does the job
- Which solar panels and other equipment you choose
- Whether you add solar battery storage
- The rebates and tax credits available to you.
Unsurprisingly, the cost of home solar is higher if you choose the most efficient, top quality equipment and add a good amount of battery storage.
Getting really granular with the data available from CDGS, we can see that there were 21 solar installations carried out by Tesla that included Tesla Powerwall storage batteries. The average cost for these installations was $35,651, for an average system size of 7.7 kW (AC). That works out to a cost per Watt of $4.63.
Some of the most expensive installations, though, were those carried out by Sunrun. The average cost of those six installations in 2022 was just over $27,000, but the systems installed were relatively small, at less than 4 kW. These systems did all include storage, but overall, the cost per Watt installed by Sunrun in San Luis Obispo worked out to $7.40, which is considerably higher than for other installers.
Interestingly, some of the least expensive installations were those carried out by SunPower, using SunPower panels, which remain the most efficient solar panels for residential use. Shouldn’t these installations be the most expensive, then? Not necessarily. And in the case of San Luis Obispo, the average cost of the 57 SunPower installations was just $13,075. That’s because with more efficient panels, you can install a smaller system and generate the same electricity as from a larger system with less efficient panels. This is borne out by a smaller average system size for SunPower installations (just 2.86 kW), working out to $4.57 per Watt installed.
At the other end of the scale are installations using Hanwha Q Cells, which are much less expensive than SunPower panels and offer middling efficiency. There were 79 such installations in the data set for 2022, with an average cost of $17,716. This works out to a cost per Watt of just $3.92 as the average system size was 4.5 kW.
Honestly, I could keep going all day with examples of how different factors affect the cost of home solar wherever you live. Suffice it to say that the final cost of your installation will be unique to you, and averages can only be a rough guide.
The takeaway
The great news for anyone considering going solar at home in San Luis Obispo is that the real-life costs are almost as low as the online solar marketplaces promise. The solar market in this county is very robust, with plenty of installers to choose from, meaning no single installer has a monopoly and controls prices.
That means homeowners would do well to get several quotes and haggle over price.
In general, if you’re installing rooftop residential solar in San Luis Obispo, you’re looking at a cost of at least $7,000 and more likely closer to $20,000. This means an upfront cost in that amount, unless you take out a solar loan or opt for a solar lease. For larger systems with storage and the best solar panels, the cost may be as high as $40,000.
San Luis Obispo residents stand to recoup the cost of home solar fairly quickly though, given the high cost of electricity here.
Find a Solar Energy partner near you.
How much energy do San Luis Obispo homeowners use and how much does it cost?
Data from the California Energy Board, it appears that the total residential electricity consumption for 2021 for San Luis Obispo County was 697.19-gigawatt hours. Census data tells us that there were 106,244 households in the county between 2016 and 2020. Running the numbers gets us an estimate, then, of approximately 6562.17 kWh per household each year.
The census also puts the average number of persons per household at 2.51, meaning a per capita (person) energy consumption of 2614.4 kWh in San Luis Obispo. To figure out your likely household energy use, multiply that per capita number by the number of persons living in your home.
Most homeowners in San Luis Obispo get their electricity from Pacific Gas and Electric (PGE). The cost of this electricity varies, with peak and off-peak rates and a California Alternative Rates for Energy (CARE) Customers discount available for some customers.
PGE’s tariff for December 2022 gives a baseline rate of 32 c per kilowatt hour, rising to 39 c/kWh and then 49 c/kWh for residential users using more electricity. Some online estimates put the cost at 38 c/kWh.
For our calculations, we assume most homeowners will pay at least the lowest PGE rate of 32 c/kWh. On that basis, the average annual household energy bill in San Luis Obispo would be around $2,100. Factor in the CARES discount and it could around $1365 each year.
How much can you save by going solar in San Luis Obispo?
How much you stand to save by installing rooftop solar on your home in San Luis Obispo depends on a whole heap of things, but let’s assume your array meets 100% of your electricity needs and your energy use and its cost are average for households in this area. On that basis, you stand to save around $2,100 in that first year alone.
This doesn’t mean you’ll simply save 25 times $2,100, though, over the likely productive lifetime of the panels. After all, electricity costs increase year on year and your energy use may change too.
Our best estimates of savings will always be a little off the actual amount you save, but the following examples should offer a general idea of potential savings.
Let’s say the inflation rate drops back down to just 1.2% and stays that way for many years (which is very unlikely!). Based on that, and assuming average annual electricity usage of 6562.17 kWh, you could save:
- $10,754 over five years
- $22,169 over 10 years
- $34,286 over 15 years
- $66,492 over 25 years.
The current inflation rate in the U.S., as of December 2022, is actually 7.7% though. Based on that, homeowners in San Luis Obispo are looking at savings more in the realm of:
- $12,245 after five years
- $29,990 after 10 years
- $55,701 after 15 years
- $174,808 after 25 years.
The actual amount you save will depend on all those factors we’ve discussed, and how much you save will also determine your solar payback period.
Putting it all together – Your solar payback period in San Luis Obispo
The solar payback period is the time it takes for your solar panels to pay for themselves in cost savings. The lower the initial cost of installation, and the more you save each month by producing electricity yourself, the shorter your solar payback period.
To put it all together, then, you need to figure out your likely cost to install solar at home in San Luis Obispo and your likely savings over the productive lifetime of the panels.
Even a quick look at the figures above shows that most homeowners will quickly pay off the cost of their panels in savings on their electricity bill. The average installation costs $20,080 in San Luis Obispo and annual savings are likely to be at least $2,100. This means that even without rebates and tax credits, the panels will probably pay for themselves in less than 10 years, leaving another 15 years for you to enjoy free electricity!
This math is too simple though, so let’s look at some more likely scenarios.
- Assuming a 1.2% inflation rate and average energy use and costs
Gross cost of a 6 kW solar array = $4.06/Watt x 6000 = $24,360
Federal tax credit of 30% = $7,308
Net cost of solar = $17,052
Cost of electricity in San Luis Obispo = $0.32/kWh
Average electricity use in San Luis Obispo = 6562.17 kWh per year
Estimated cost of electricity for first 8 years = $19,832
Eight-year savings (assuming 90% of energy bill offset by going solar) = $17,848
Solar payback period = under 8 years!
- Assuming a 7.7% increase in electricity costs each year and average electricity use
Gross cost of a 6 kW solar array = $4.06/Watt x 6000 = $24,360
Federal tax credit of 30% = $7,308
Net cost of solar = $17,052
Cost of electricity in San Luis Obispo = $0.32/kWh
Average electricity use in San Luis Obispo = 6562.17 kWh per year
Estimated cost of electricity for first 7 years = $18,565
Seven-year savings (assuming 90% of energy bill offset by going solar) = $16,709
Solar payback period = just over 7 years!
What if you get the CARES discount on electricity, though? Is it worth going solar in San Luis Obispo? For most homeowners, the answer is still yes!
- Assuming a 1.2% increase in electricity costs each year and a 35% discount on electricity costs
Gross cost of a 6 kW solar array = $4.06/Watt x 6000 = $24,360
Federal tax credit of 30% = $7,308
Net cost of solar = $17,052
Cost of electricity in San Luis Obispo = $0.32/kWh
Cost of electricity with 35% discount = $20.8/kWh
Average electricity use in San Luis Obispo = 6562.17 kWh per year
Estimated cost of electricity for first 13 years = $19,079
Thirteen-year savings (assuming 90% of energy bill offset by going solar) = $17,171
Solar payback period = under 13 years!
- Assuming a 7.7% increase in electricity costs each year and a 35% discount on electricity costs
Gross cost of a 6 kW solar array = $4.06/Watt x 6000 = $24,360
Federal tax credit of 30% = $7,308
Net cost of solar = $17,052
Cost of electricity in San Luis Obispo = $0.32/kWh
Cost of electricity with 35% discount = $20.8/kWh
Average electricity use in San Luis Obispo = 6562.17 kWh per year
Estimated cost of electricity for first 10 years = $19,493
Ten-year savings (assuming 90% of energy bill offset by going solar) = $17,544
Solar payback period = under 10 years!
All in all, the cost of going solar in San Luis Obispo is quite a bit lower than elsewhere in the U.S., while the cost of electricity is a lot higher. This means almost all homeowners, even those getting a discount on the electric bill, stand to save money over the lifetime of their solar installation.
In addition to a short solar payback period, meaning free electricity for well over a decade for most homeowners, installing solar means you’re producing green, clean electricity right on your roof. That translates to direct cost savings for you on your monthly bill and indirect savings by helping everyone have cleaner air and a healthier environment.