How Much Does it Cost to Go Solar in Santa Barbara County?

The average cost of a home solar energy system in Santa Barbara County in 2022 was just under $26,000. Throw in the federal tax credit and homeowners could have paid just over $20,000 to go solar at home! That means some Santa Barbarans could pay back the upfront cost of solar in less than 9 years!

Around 750 Santa Barbara homeowners installed solar and interconnected with the electrical grid in 2022. Those homeowners paid, on average, just under $26,000 for their home solar energy systems. This works out to a cost per Watt that’s quite a lot lower than elsewhere in California, making home solar a real bargain in Santa Barbara!

The cost of home solar with storage was also relatively low in Santa Barbara. Solar storage batteries are a great way to save more on energy bills as you can generate electricity during the day and then use it at night or on cloudier days. This means you draw less from the grid and send less to the grid for the paltry net metering compensation offered in California currently.

The true cost of home solar in Santa Barbara

The best way to figure out the cost of home solar in Santa Barbara County is to look at the data for actual installations completed and interconnected to the grid. While online solar quote generators offer a rough guide, these quotes are often overly optimistic and represent a low, baseline figure that many homeowners are unlikely to actually pay when all is said and done.

See also: What solar incentives does California offer?

Incredibly, homeowners in California can access a huge amount of useful data courtesy of California Distributed Generation Statistics. This data set details real-life installations, with information on the installer, the size of the system, and even the tilt of the solar panels! It also lists the total cost and how much, if any, solar battery storage was included in the installation.

Here’s a summary of what I found for 2022 residential rooftop solar installations in Santa Barbara County. I’ve also included figures for the federal tax credit and a possible net cost for these installations.

To get the figures above, I included 742 solar installations in Santa Barbara County, completed and with an approved interconnection by October 31^st, 2022. To avoid too many confounding factors, I left out data for systems where solar was installed alongside wind power or other fuel source. I also omitted self-installed systems and those with electric vehicle charging, as well as systems using a ground mount or mixed mount design (rather than just a fixed rooftop system).

What we end up with is an average cost of $25,922.80 for all residential solar systems installed in Santa Barbara County. The figure for systems with storage is quite a bit higher, at $36,965.29 and, unsurprisingly, the figure for systems without storage is a little lower, at $23,571.54.

Interestingly, the cost per Watt isn’t all that different between systems with and without storage. In some markets in California, this difference is well over a dollar per Watt. In Oakland, the difference is nearly two dollars per Watt between systems with and without storage.

Once again, the actual cost of real-life instllations looks quite different to online quotes. EnergySage, for instance, gives a likely cost of just $2.92/W for home solar in Santa Barbara. This amounts to a total gross system cost of $14,600 for a 5 kW rooftop array. By our estimates, the more likely cost is nearly double that amount.

Getting really granular

The beauty of the CDGS data is that interested homeowners (and analysts!) can play around with different variables to find the likely cost of different kinds of home solar energy systems. Wherever you live, though, the cost of installing rooftop solar will depend on factors including:

• System size and design
• The state of your roof
• Your chosen solar installer
• The make and model of solar panels, inverters, batteries, etc.
• How much, if any, storage you include
• Availability and eligibility for rebates, discounts, and tax credits.

In general, the bigger and more complicated the system, the more you’re likely to pay.

Homeowners may be surprised, however, to see that costs can vary quite a bit between systems installed by some of the major nationwide solar installers, including for systems using premium equipment.

In 2022, SunPower installations in Santa Barbara cost nearly half as much as the average system. Sure, these systems were smaller on average, but the cost per Watt was also $0.60 less! And the beauty of SunPower installations is that these premium solar panels offer the highest efficiency conversion of sunlight into electricity. That means homeowners could install smaller systems while still meeting their energy needs.

Tesla installations were also more cost-effective than average, with a per Watt cost $1.20 less than average. Most of these systems also included storage and were larger than average, giving a total cost around $26,000.

Looking specifically at installations using the highest efficiency brand of solar panels (SunPower), compared to less efficient (but still good quality) Hanwha Q.Cells, we get the following numbers.

Note that installations using SunPower panels actually cost slightly less per Watt than those using Hanwha Q.Cells. Note, too, the overall installation cost: SunPower installations cost nearly 50% less than those using Q.Cells. This is likely because homeowners could enjoy the same energy output from a smaller system, thanks to the panels’ greater efficiency.

The takeaway

Thanks to all the CDGS data, homeowners in Santa Barbara County can get a really good sense of how much a home solar energy system would cost in 2022/23. This kind of estimate is far more useful than the standardized, overly optimistic quotes available on solar marketplaces.

All in all, the cost of solar in Santa Barbara is lower than anywhere else we’ve looked at so far in California, including San Francisco, Oakland, and San Jose. Home solar in Santa Barbara County is also far cheaper than in Fresno (by nearly $2/Watt!) and in Sacramento.

The cost per Watt in Santa Barbara is very similar to that in San Luis Obispo, differing only by a few cents for all systems, systems with storage, and for systems without storage.

Given the low cost of solar in Santa Barbara, it seems obvious that it’s worth installing a rooftop array. Is that true, though? As always, it depends on individual circumstances. For homeowners looking to install a low-cost system, who pay high energy prices, and who qualify for the federal tax credit, chances are the solar payback period in Santa Barbara will be very short indeed. For homeowners getting a discount on electricity, though, and who pay more for a larger system, the calculus may look a little different.

How much energy do Santa Barbara households use and how much does it cost?

There were 147,446 households in Santa Barbara County in 2021, according to the latest U.S. Census. Using data from the California Energy Board, we can see that those households used a total of 811.23 gigawatt hours of electricity in 2021. Run the numbers and you get a figure of 5501.85 kWh for average household electricity use in Santa Barbara County in 2021.

How much do Santa Barbarans pay for that electricity? It depends. Many residents get their electricity from Pacific Gas & Electric (PG&E), while others get theirs from 3C Choice. In March 2022, the average cost per kWh for PG&E was $0.34458 and the average cost for 3C Choice was $0.32106 per kWh, according to the California Public Utilities Commission. This works out to $0.33282 per kWh for the average customer overall.

The CPUC also gives an average monthly usage of 388 kWh for customers in Santa Barbara. This works out to 4656 kWh each year. For our purposes, then, we’ll take an average of this number and our calculation from above, resulting in household energy usage of 5079 kWh per year.

Putting it all together, this means the average Santa Barbara household is likely to pay somewhere in the region of $1690.39 for electricity each year.

To get a super simple estimate of potential savings after going solar, we can multiply that annual figure by 25 (the typical warranty period for many solar panels). By that measure, Santa Barbarans may save at least $42,260 by going solar.

Why do I say at least? Because while many solar panels now come with a production warranty for up to 25 years, it’s not like they just stop producing electricity after that date. In fact, older installations that are 30 or more years old are still going strong in many parts of the U.S., meaning those savings also continue to rack up year on year.

That simple savings estimate also ignores the fact that inflation is high right now in the U.S., with electricity costs increasing every year. As such, most homeowners stand to save far more than $1690 in 2023 and beyond.

To work out a more likely estimate of savings for Santa Barbarans going solar in 2022, we’ve crunched the numbers below.

How much can you save by going solar in Santa Barbara?

At the time of writing (December 2022), the inflation rate in the U.S. is 7.1%. This is quite high compared to recent years, but some analysts expect this higher rate to stick around for the next few years. Historically, the U.S. has experienced an average rate of inflation of around 1.2%, though.

Using a 1.2% rate of inflation, we worked out that a Santa Barbara homeowner may save the following amounts by going solar at home in 2022/23:

• Over 5 years – $8,657
• Over 10 years – $17,847
• Over 15 years – $27,601
• Over 25 years – $53,527.

Let’s also look at potential savings based on a rate of inflation of 7.1%, though. At this rate, Santa Barbarans could be looking at savings to the tune of:

• Over 5 years – $9,740
• Over 10 years – $23,466
• Over 15 years – $42,807
• Over 25 years – $127,912.

The actual savings an individual homeowner will see depends on annual electricity use, their tariff with the energy company, and how much electricity their solar array generates to offset their needs. For nerds like me, the CDGS data is an absolute goldmine. Using this data, homeowners in Santa Barbara County can toggle various factors, including zipcode, solar installer, size of array, and even whether the array uses fixed mounts or a tracking system. This way, if you have a specific kind of system in mind, you can get a much clearer sense of the likely cost and, therefore, the savings you might see year on year.

Putting it all together – Your solar payback period in Santa Barbara

The solar payback period is the time it takes to recoup in monthly utility bill savings the upfront cost of installing solar. This is an important measure in the decision to go solar versus signing up for community solar, say.

Below, I offer a few different possible scenarios to illustrate potential solar payback periods for homeowners in Santa Barbara County. These are based on a system size of 5 kW, which is a little more than the average system size installed in 2022. I’ve also assumed homeowners will pay the average cost of electricity as calculated above, or that they get the CARES discount of around 35%. Finally, the cost per Watt is based on all systems installed and interconnected in 2022. If you’re looking to install a system with or without storage, feel free to run the numbers yourself using the different cost per Watt values from earlier.

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

Gross cost of a 5 kW solar array = $4.93/Watt x 5000 = $24,666

Federal tax credit of 30% = $7,400

Net cost of solar = $17,266

Cost of electricity in Santa Barbara County = $0.33282 per kWh

Average electricity use in Santa Barbara County = 5709 kWh per year

Estimated cost of electricity for first 11 years = $19,751

Eleven-year savings (assuming 90% of energy bill offset by going solar) = $17,776

Solar payback period = just under 11 years

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

Gross cost of a 5 kW solar array = $4.93/Watt x 5000 = $24,666

Federal tax credit of 30% = $7,400

Net cost of solar = $17,266

Cost of electricity in Santa Barbara County = $0.33282 per kWh

Average electricity use in Santa Barbara County = 5709 kWh per year

Estimated cost of electricity for first 9 years = $20,332

Nine-year savings (assuming 90% of energy bill offset by going solar) = $18,299

Solar payback period = less than 9 years!

Homeowners who get the CARES discount on electricity might well wonder if it makes sense to install solar when they already pay less for electricity. For many Santa Barbara County residents, the answer is 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 = $4.93/Watt x 5000 = $24,666

Federal tax credit of 30% = $7,400

Net cost of solar = $17,266

Cost of electricity in Santa Barbara County = $0.33282 per kWh

Cost of electricity with 35% discount = $0.2163/kWh

Average electricity use in Santa Barbara County = 5709 kWh per year

Estimated cost of electricity for first 16 years = $19,254

Sixteen-year savings (assuming 90% of energy bill offset by going solar) = $17,329

Solar payback period = just under 16 years

Even in this scenario, homeowners in Santa Barbara County stand to enjoy a decade or so of truly free electricity after recouping the cost of going solar.

• 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 = $4.93/Watt x 5000 = $24,666

Federal tax credit of 30% = $7,400

Net cost of solar = $17,266

Cost of electricity in Santa Barbara County = $0.33282 per kWh

Cost of electricity with 35% discount = $0.2163/kWh

Average electricity use in Santa Barbara County = 5709 kWh per year

Estimated cost of electricity for first 12 years = $19,771

Twelve-year savings (assuming 90% of energy bill offset by going solar) = $17,794

Solar payback period = under 12 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 = $4.93/Watt x 5000 = $24,666

Federal tax credit of 0% = $0

Net cost of solar = $24,666

Cost of electricity in Santa Barbara County = $0.33282 per kWh

Average electricity use in Santa Barbara County = 5709 kWh per year

Estimated cost of electricity for first 14 years = $27,736

Fourteen-year savings (assuming 90% of energy bill offset by going solar) = $24,963

Solar payback period = just under 14 years

Again, even assuming you can’t claim the full 30% federal solar investment tax credit, the solar payback period in Santa Barbara County could be less than 14 years. This means you’ll enjoy more than a decade of free electricity, covered by a production warranty, plus ongoing electricity produced after the warranty period is up.

Final thoughts on the cost of going solar in Santa Barbara

Santa Barbarans pay a lot for electricity. In contrast, the cost of a home solar energy system in Santa Barbara County is quite a bit lower than elsewhere in California. The combination of these two things makes for a shorter solar payback period and a longer time during which homeowners get to enjoy truly free electricity production right on their rooftop!

Santa Barbarans considering home solar may also want to consider the relatively low cost of higher efficiency home solar energy systems versus less efficient ones. From the CDGS data, we saw that SunPower installations actually work out as offering excellent value, with a lower cost per Watt and a lower cost overall. In short, don’t discount premium brands and premium installers based on fear of higher total costs!

To get a good sense of how much home solar will cost for you, play around with the figures above or nerd out with the CDGS data file. You might be surprised at the difference between quotes online and the true cost of solar in Santa Barbara County.