How Much Does it Cost to Go Solar in Oakland?

Homeowners who installed solar at home in Oakland in 2022 paid an average cost of $5.48 per Watt. The gross cost of going solar in Oakland in 2022 was $29,084 on average, for systems of around 5.31 kW in size. With the 30% federal tax credit reinstated, many homeowners will have paid just over $20,000 net to install residential rooftop solar!

More than 1,000 Oakland homeowners went solar in 2022, paying just under $30,000 on average. Systems without solar battery storage cost less than $25,000 gross, for a net cost of just over $17,000 after the federal tax credit.

Around a quarter of the systems interconnected to the electrical grid included battery storage, helping homeowners gain even greater energy independence in Oakland. The cost of those systems was, understandably, quite a bit higher, but how much folks paid for solar depended greatly on the size of the system, who installed it, and which equipment they chose.

Below, I offer an analysis of the cost of home solar in Oakland, based on real-life data from actual installations interconnected to Pacific Gas and Electric (PGE), one of the city’s main electricity providers. I also look at the likely solar payback period for homeowners in Oakland and ask if it makes sense, financially, to go solar at home in the bright side of the Bay.

The cost of home solar in Oakland

Online home solar estimates are typically based on optimistic quotes from solar installers. This can be a little deceptive as many home solar installations aren’t straightforward and end up costing more than initial standardized quotes.

This is why I favor estimates based on real-life data from home solar installations completed and interconnected to the grid. Thankfully, California offers a treasure trove of such data, in the form of California Distributed Generation Statistics.

I took a look at the data for Oakland and here’s the breakdown of the average cost and size of rooftop residential solar installations in Oakland City in 2022, with and without storage. I’ve also included figures for the federal solar investment tax credit and net cost with that credit applied.

The numbers above come from an analysis of 955 installations for residential rooftop solar installations in Oakland City up to October 31^st, 2022. I omitted systems that paired solar with wind power or another alternative fuel source, and also left out systems installed by homeowners themselves and systems with electric vehicle charging.

Storage versus no storage

Of the 955 home solar energy systems included in the data, 235 included at least some storage. The amount of storage varied widely, with some systems including more than 20 kWh of storage capacity but many others including less than 10 kWh.

Systems that did include at least some storage cost an average of $42,308. The average system size was 6.37 kW (AC), working out to a cost of $6.64 per Watt on average. While the average system size was around the same as for other places in California, the cost was quite a bit higher in Oakland. For instance, in San Luis Obispo, the average system with storage was sized at 6.41 kW but cost just $5.32 per Watt. In Sacramento, the cost per Watt was just $5.35 for systems sized 6.86 kW on average. The cost was fairly similar in Oakland San Francisco, though, with the latter seeing systems sized at 5.27 kW and costing $6.79 per Watt.

For systems without storage, the average cost was $24,792, for an average system size of 4.97 kW AC. This works out to a cost of $4.99 per Watt.

Getting really granular

The cost of going solar in Oakland depends on a range of factors. These include:

• How big a system you install
• How complicated your roof and system design are
• Which solar installer you use
• Which solar panels you choose
• Whether you add solar storage (and how much)
• Your eligibility for rebates and tax credits.

Larger, more complicated systems with storage, installed by more experienced solar installers, and that include the highest efficiency solar panels are likely to cost the most. The impact of all of these choices can be seen in the data from CDGS.

For instance, here are some of the most popular installers in Oakland for systems including storage, with a side by side comparison of average costs and cost per Watt.

As you can see, the cost per Watt is quite different between a Tesla installation and a Sunrun or SunPower installation. In fact, SunPower installations with storage cost nearly 44% more than a Tesla installation in Oakland in 2022! Tesla was also less expensive per Watt than Sunrun in Fresno and San Luis Obispo.

SunPower does offer the highest efficiency solar panels, though, with the X-22 series currently topping out at 22.2% efficient. At the other end of the price scale are Hanwha Q Cells, which are also good quality but a little less efficient. Here’s a comparison of installations using Q Cells and X-22 Series SunPower panels.

Note that there’s not a huge difference in the cost per Watt or the overall average system cost, with SunPower costing slightly more. Arguably, given the efficiency differences between these two types of solar panel, a SunPower installation that costs a few thousand more initially would more than pay for itself by producing more energy over the 25-year warranty period of both products.

The takeaway

The nice thing about having all this CDGS data available is that Oakland homeowners can get a really good sense of the potential cost of a specific kind of installation. That means you can gather quotes and negotiate pricing based on more than overly optimistic online estimates that don’t reflect real life.

Overall, the cost of solar in Oakland is a little less than in Fresno and San Francisco but higher than in San Luis Obispo and Sacramento.

Is it worth going solar in Oakland? The short answer is that it depends. If you’re eligible for the federal tax credit or other incentives, and you pay a high cost of electricity currently, chances are you’d quickly recoup the initial cost of a home solar installation. What if your monthly utility bill is lower, though, and you don’t qualify for the federal tax credit? Working out your solar payback period is a great way to see if a solar energy system makes sense for your household.

How much energy do Oakland homeowners use and how much does it cost?

Data from the Census tells us that there were 167,307 households in Oakland City in 2021 and 581,683 households in Alameda County overall. Data from the California Energy Board tells us that these households in Alameda County consumed 3308.26 gigawatt hours of electricity in 2021. This gives us an estimate, then, of approximately 5687.39 kWh per household each year.

Oakland has a number of electricity providers, meaning costs can be a little lower here than in some other areas of California where Pacific Gas and Electric (PGE) is the only or main electricity provider. The Bureau of Labor Statistics gives a rate of 25.9 cents per kilowatt hour for residential electricity in the Oakland area in November 2021.

PGE’s tariff for December 2022 gives a baseline rate of 32 c per kilowatt hour, though, which increases to 39 c/kWh and then 49 c/kWh for residential users using more electricity.

For our calculations, we’re going to assume that the average homeowner pays 27 c/kWh. On that basis, the average annual household energy bill in Oakland would be around $1,535.60. Energy costs rise each year, however, meaning that calculating potential utility bill savings over the typical 25-year warranty period of solar panels isn’t quite as straightforward as multiplying $1,500 by 25.

How much can you save by going solar in Oakland?

Based on average electricity use and costs in Oakland, most homeowners stand to save around $1,500 a year by going solar. This assumes your system is sized to meet most of your electricity needs, and also assumes no increase in electricity costs year on year. The latter is very unlikely, especially with an inflation rate of 7.1% at the time of writing (December 2022).

Let’s assume instead that Oakland electricity costs are subject to an annual inflation rate of 1.2%. How much would the average homeowner here stand to save over the 25-year warranty period of most solar panels? Here’s a general idea of potential savings:

• Over 5 years – $7,864
• Over 10 years – $16,212
• Over 15 years – $25,073
• Over 25 years – $48,625.

The actual inflation rate in the U.S., as of December 13, 2022, is 7.1%, though. Assuming that level of inflation sticks around for a while, homeowners in Oakland could save:

• Over 5 years – $8,848
• Over 10 years – $21,317
• Over 15 years – $38,887
• Over 25 years – $116,199.

Actual savings will depend on individual circumstances and the real-life energy production of the installed system. This is why it helps to go with an experienced solar installer that offers accurate predictions of likely energy output and a guarantee to compensate for performance that is substantially below that estimate.

Putting it all together – Your solar payback period in Oakland

The solar payback period is an important thing to consider when deciding to go solar at home. This calculation tells you when you’re likely to recoup the initial cost of your home solar installation and start enjoying genuinely free electricity.

Because electricity costs a little less in Oakland and folks here see, to use less on average than in other parts of California, the solar payback period is likely to be a little longer. Let’s run the numbers, though, using figures for a 5 kW array, which is a little smaller than the average size of array (5.31 kW) installed in Oakland in 2022.

1. Assuming a 1.2% inflation rate and average energy use and costs

Gross cost of a 5 kW solar array = $4.63/Watt x 7000 = $27,400

Federal tax credit of 30% = $8,220

Net cost of solar = $19,180

Cost of electricity in Oakland = $0.27/kWh

Average electricity use in Oakland = 5687.39 kWh per year

Estimated cost of electricity for first 12 years = $21,465

Six-year savings (assuming 90% of energy bill offset by going solar) = $19,319

Solar payback period = just under 12 years

• Assuming a 7.1% increase in electricity costs each year and average electricity use

Gross cost of a 5 kW solar array = $4.63/Watt x 7000 = $27,400

Federal tax credit of 30% = $8,220

Net cost of solar = $19,180

Cost of electricity in Oakland = $0.39/kWh

Average electricity use in Oakland = 10,205 kWh per year

Estimated cost of electricity for first 9 years = $21,317

Nine-year savings (assuming 90% of energy bill offset by going solar) = $19,185

Solar payback period = 9 years!

What if you get the CARES discount on electricity, though? Is it worth going solar in Oakland? For many homeowners, the answer may still be yes!

• Assuming a 1.2% increase in electricity costs each year and a 35% discount on electricity costs

Gross cost of a 5 kW solar array = $4.63/Watt x 7000 = $27,400

Federal tax credit of 30% = $8,220

Net cost of solar = $19,180

Cost of electricity in Oakland = $0.27/kWh

Cost of electricity with 35% discount = $17.55/kWh

Average electricity use in Oakland = 5687.39 kWh per year

Estimated cost of electricity for first 18 years = $21,159

Eighteen-year savings (assuming 90% of energy bill offset by going solar) = $19,043

Solar payback period = just over 18 years

• Assuming a 7.1% increase in electricity costs each year and a 35% discount on electricity costs

Gross cost of a 5 kW solar array = $4.63/Watt x 7000 = $27,400

Federal tax credit of 30% = $8,220

Net cost of solar = $19,180

Cost of electricity in Oakland = $0.27/kWh

Cost of electricity with 35% discount = $17.55/kWh

Average electricity use in Oakland = 5687.39 kWh per year

Estimated cost of electricity for first 13 years = $22,669

Thirteen-year savings (assuming 90% of energy bill offset by going solar) = $20,402

Solar payback period = under 13 years

• Assuming a 2.4% inflation rate and average energy use and costs but no federal tax credit

Gross cost of a 5 kW solar array = $4.63/Watt x 7000 = $27,400

Federal tax credit of 0% = $0

Net cost of solar = $27,400

Cost of electricity in Oakland = $0.27/kWh

Average electricity use in Oakland = 5687.39 kWh per year

Estimated cost of electricity for first 16 years = $31,773

Sixteen-year savings (assuming 90% of energy bill offset by going solar) = $28,595

Solar payback period = just under 16 years

Even without the federal tax credit, most homeowners can expect to pay back the cost of going solar in Oakland in less than 16 years. This would still allow for nearly a decade of free electricity, plus many more years of energy production outside of the typical warranty period.

Final thoughts on the cost of going solar in Oakland

When it comes to the average cost of a home solar installation, Oakland is similar to San Francisco. Dig a little deeper, though, and you can see that the cost per Watt is actually quite a bit higher overall in Oakland than in SF. Many Oakland residents also pay less for electricity than their neighbors in other parts of California. All of this can add up to a longer solar payback period in Oakland.

For Oakland homeowners considering solar, it’s a good idea to run the numbers based on real-life installations. Some online quote marketplaces would have you believe that home solar will pay for itself, even in Oakland, in under 8 years. By our calculations, this doesn’t ring true. All the scenarios we ran above resulted in a solar payback period of at least 9 years, with most coming in at more than 12 years.

Savings on your utility bill aren’t the only reason for going solar in Oakland, of course. Many homeowners are motivated more by the idea of independence from the electrical grid and by the overall benefits of generating clean, green electricity right on your rooftop. The real takeaway, then, is that the decision to go solar is very personal, and only you know if it makes sense, financially, or otherwise to install rooftop solar on your Oakland home.