Electricity rate as of 2026-06-01. Sun hours: NREL PVWatts, San Francisco fixed-tilt annual average. Range: 4.9 to 5.3 hours per day. The summer marine layer (the SF fog) is primarily a morning phenomenon; afternoons typically clear. Seasonal variation is significant: summer daily effective irradiance of roughly 7.0 kWh per kW of installed capacity drops to 3.1 kWh per kW per day in winter. Annual production from a SF system typically runs 10 to 15% below a comparable Fresno or Los Angeles installation.. Cost per watt: EnergySage and SolarReviews May 2026, San Francisco County. Range: $2.59 to $3.18 per watt. Older building stock, permitting complexity with DBI and SF Fire Department coordination, and structural engineering requirements for Victorian and Edwardian homes drive costs toward the higher end of the range.. Payback estimate assumes zero federal residential credit (Section 25D expired December 31, 2025) and current utility net-metering tariffs.

Net metering in San Francisco

PG&E NEM 3.0 Solar Billing Plan. Export credits: time-varying avoided-cost rates averaging $0.05 to $0.08 per kWh. PG&E customers who apply to interconnect before the end of 2027 are eligible for the ACC Plus export adder of 2.2 cents per kWh for nine years. CleanPowerSF customers receive the same export credits through PG&E billing. Export data as of June 2026; verify at pge.com/nem.

Available programs

Solar incentives in San Francisco, CA for 2026

Incentives available in CA

Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).

Active solar incentives in CA
Program	Benefit	Eligibility	Status	Source
DAC-SASH (Disadvantaged Communities Single-Family Solar Homes) Local/State Incentive	$3 per watt upfront rebate, maximum 5 kW system (up to $15,000). Administered by GRID Alternatives for PG&E territory. Active through 2030. Apply through GRID Alternatives at gridalternatives.org/what-we-do/program-administration/dac-sash.	PG&E territory homeowners in CPUC-designated disadvantaged communities in San Francisco. Income qualification required. Contact gridalternatives.org to check address eligibility.	Active	DSIRE (opens in new tab)
CPUC Self-Generation Incentive Program (SGIP) -- Equity and Resiliency Local/State Incentive Waitlisted as of 2026-06-29. Apply early; verify at dsireusa.org.	Approximately $150 to $200 per kWh of battery storage for qualifying low-income and medical-baseline PG&E customers. Fully reserved as of early 2026. Waitlist maintained; position preserved when funding reopens. Apply at cpuc.ca.gov/sgip. Do not plan on this incentive without a confirmed waitlist reservation.	PG&E residential customers who are income-qualified (at or below 80% AMI) or have medical-baseline status. $280 million state budget fully reserved as of early 2026; waitlist active.	Waitlisted	DSIRE (opens in new tab)
California Solar Property Tax Exclusion Local/State Incentive	Excludes the added home value from solar from property tax assessment. In San Francisco, where property values are among the highest in the state, the tax benefit on a $17,000 to $25,000 system is significant. Sunsets December 31, 2026 under current California law (Revenue and Taxation Code Section 73). Systems installed and permitted by December 31, 2026 lock in the exclusion. Verify at ftb.ca.gov.	All California homeowners installing solar. Applies automatically upon permit filing.	Active	DSIRE (opens in new tab)
AB 1124 Permit Fee Cap Local/State Incentive	Solar permit fee capped at $450 for systems under 15 kW. Statewide California law. No expiration date. California law. Note: DBI hourly inspection charges ($181.82/hr) and SF Fire Department field inspection charges ($144/hr) are billed separately from the permit fee and are not capped by AB 1124.	All California addresses. No AHJ may charge more than $450 for a standard residential PV permit. Applies to DBI base fee; hourly DBI and SF Fire inspection charges are separate.	Active	DSIRE (opens in new tab)

Data last verified June 29, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.

California property-tax exclusion sunsets December 31, 2026. Solar systems installed and permitted by December 31, 2026 lock in the exclusion for the life of the system under current California law (Revenue and Taxation Code Section 73). Systems installed in 2027 may not qualify if the Legislature does not extend the exemption. Verify current legislative status at ftb.ca.gov before signing a contract.

Why San Francisco homeowners are moving now

After the January 2025 wildfires, battery storage became a priority

San Francisco's solar case is driven by PG&E's high electricity rates, not despite the fog. The marine layer burns off most afternoons, and panels continue to produce diffuse-light energy even on overcast mornings. Average annual production from a San Francisco system typically runs 10 to 15% below a comparable Fresno or Los Angeles installation, but the high PG&E rate means each kilowatt-hour saved is worth more. The emerging local driver in 2026 is seismic resilience: a solar-plus-battery system maintains critical loads after a Hayward Fault event that disrupts grid power for hours or days. San Francisco homeowners in neighborhoods with known liquefaction risk (the Marina, parts of SOMA) increasingly cite grid independence as a primary motivation alongside bill savings.

Source: PG&E 2026 rate schedule; NREL PVWatts San Francisco production data; USGS Hayward Fault seismic risk mapping (2026).

Illustrative example

What does a typical San Francisco solar system actually cost and save?

Zero federal residential credit applied (Section 25D expired December 31, 2025). Figures are estimates based on market data as of 2026-06-29. Your numbers depend on your roof, your utility, and your bill.

System inputs

System size: 6 kW
Gross cost ($2.89/W): $17,340
Federal residential credit: $0 (expired Dec 31, 2025)
California property-tax exclusion: system value excluded from reassessment: Applied
AB 1124 permit fee cap: base permit fee capped at $450: Applied
Estimated net cost: $17,340

Estimated outcomes

Annual savings range: $1,200 to $1,800
Estimated payback: 11.5 years

San Francisco, PG&E territory: a 6 kW system at $2.89 per watt costs approximately $17,340 gross. No cash rebate reduces this cost for market-rate homeowners in 2026. No federal residential credit applies (Section 25D expired December 31, 2025). At PG&E's effective San Francisco rate of approximately 35 cents per kWh (midpoint of $0.32 to $0.38 range post-March 2026 restructuring), self-consumed solar avoids significant grid charges. Under NEM 3.0, exported power earns only 5 to 8 cents per kWh. Annual savings for a San Francisco home consuming most production during the day range from approximately $1,200 to $1,800, producing an estimated payback of approximately 11 to 12 years. San Francisco's longer payback compared to other California cities reflects the higher installation cost (driven by older building stock, DBI complexity, and SF Fire Department coordination) and more modest sun hours (4.9 to 5.3 per day) compared to inland or Southern California metros. Sunnier micro-climates such as Noe Valley, Glen Park, and Diamond Heights outperform the city average. Adding battery storage improves evening self-consumption economics given PG&E's high TOU on-peak rates. All figures assume zero federal residential credit, 5.1 peak sun hours per day, current PG&E rate schedule, and NEM 3.0 export credits. These are estimates; a site-specific assessment accounting for roof orientation, shading from adjacent buildings, and micro-climate conditions is particularly important in San Francisco.

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Neighborhoods we serve

Solar in San Francisco: high-adoption areas, equity zones, and post-fire demand corridors

High-adoption neighborhoods

Established solar saturation; higher installers per block, active neighbor referrals, and permit history at LADBS.

Noe Valley
Glen Park
West Portal
Diamond Heights
Potrero Hill

Equity program target areas

Designated disadvantaged communities (DAC) eligible for SGIP equity resiliency, DAC-SASH, and other income-qualified programs. Income verification required.

Bayview-Hunters Point
Excelsior
Visitacion Valley

Post-fire and growth corridors

Wildfire-affected and adjacent neighborhoods where battery storage demand surged following the January 2025 fires. Rebuilding homeowners and proximate neighbors with elevated grid-resilience priorities.

SOMA
The Mission
Bernal Heights

LOCAL INSTALL PHOTO -- SAN FRANCISCO -- TO BE PROVIDED

Permitting and interconnection

How solar permitting works in San Francisco

Authority Having Jurisdiction (AHJ)

Permit office: San Francisco Department of Building Inspection (DBI) for structural and electrical permit; SF Fire Department for fire safety review. Both agencies are required for systems over 4 kWdc.
SolarAPP+ status: SolarAPP+: Instant approval
Permit fee: State law caps residential solar permit fees at $450 for systems under 15 kW. DBI inspections are charged at $181.82 per hour; SF Fire Department field inspections at $144 per hour. SolarAPP+ instant electrical permit is available only for existing single-family and two-family homes (R-3 occupancy) with PV systems 4 kWdc and under. Larger systems require standard DBI plan review. Historic district properties require additional Planning Department review.
Typical contract-to-energization: 8 to 14 weeks standard. SolarAPP+ eligible systems (4 kWdc and under, R-3 occupancy): instant electrical permit, then 1 to 2 weeks for required DBI and SF Fire Department inspections, then 2 to 4 weeks for PG&E interconnection. Standard DBI plan review (systems over 4 kWdc): 2 to 5 weeks for permit; add 1 to 2 weeks for inspections; then 2 to 4 weeks for PG&E interconnection. Historic district properties: add 4 to 8 or more weeks for Planning Department review.

We handle the permit and interconnection filings

LADBS permit application and plan set preparation
SolarAPP+ submission for qualifying systems
LADWP or SCE interconnection application
Inspection coordination and utility sign-off
Certificate of Completion delivery to homeowner

The SolarAPP+ instant pathway in San Francisco is limited to residential systems 4 kWdc and under on R-3 (single-family or two-family) properties. Most San Francisco solar systems exceed 4 kWdc and require the full DBI plan review plus SF Fire Department coordination. Victorian and Edwardian homes in historic districts -- which cover large portions of the city including the Inner Sunset, Richmond, Pacific Heights, Haight, and Mission -- require Planning Department review in addition to DBI, adding 4 to 8 or more weeks to the timeline. Flat roofs on mid-century buildings in SOMA, the Mission, and Potrero Hill typically offer more straightforward permitting than peak-and-valley Edwardian facades.

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Serving San Francisco and surrounding CA communities

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Noe Valley, San Francisco REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning DBI permitting process and micro-climate sun exposure]

System: 5.5 kW rooftop solar, PG&E / CleanPowerSF territory

Potrero Hill, San Francisco REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from flat-roof SOMA or Potrero Hill property mentioning seismic resilience motivation]

System: 7 kW rooftop solar plus battery, PG&E territory, flat roof installation

Glen Park, San Francisco REVIEW -- TO BE PROVIDED

[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from sunnier SF micro-climate neighborhood]

System: 6.2 kW rooftop solar, PG&E / CleanPowerSF territory

For business owners and property managers

Commercial Solar in San Francisco: Section 48E Before July 4, 2026

San Francisco's commercial and multi-family solar market has unique permitting complexity but strong rate economics: PG&E commercial rates and CleanPowerSF territory make the financial case compelling for commercial properties. The federal Section 48E commercial investment tax credit (30% base credit for projects starting construction by July 4, 2026) combined with MACRS depreciation applies to commercial rooftops, parking canopies, and multi-family buildings throughout San Francisco. The seismic resilience argument for battery-plus-solar is also significant for commercial properties with critical operations. After July 4, 2026, the Section 48E construction-start window closes.

See commercial solar options

Commercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.

Schedule a Free Commercial Assessment

San Francisco solar questions

What San Francisco homeowners ask

City-specific answers. Every number references your utility and your permit office.

Do solar panels work in San Francisco fog?

Yes. The San Francisco marine layer is primarily a morning phenomenon; most afternoons clear. Solar panels also produce energy from diffuse light on overcast days, not just direct sunlight. Annual production from a San Francisco system typically runs 10 to 15% below a comparable Fresno or Los Angeles installation because of the fog and seasonal variation, but every kilowatt-hour generated is worth more in SF because PG&E's rate is approximately 35 cents per kWh. Neighborhoods with sunnier micro-climates -- Noe Valley, Glen Park, Diamond Heights, and Potrero Hill -- outperform the city average. A site-specific assessment is more important in San Francisco than almost any other California city.

Can I get a solar permit quickly in San Francisco?

It depends on your system size. The SolarAPP+ instant permit pathway at SF Department of Building Inspection (DBI) is available only for existing single-family and two-family homes (R-3 occupancy) with systems 4 kWdc and under. Most San Francisco solar systems are larger than 4 kWdc and require the full DBI plan review plus SF Fire Department coordination, which takes 2 to 5 weeks for permitting alone. Properties in historic districts -- which cover large portions of the city -- require additional Planning Department review, adding 4 to 8 or more weeks. Total contract-to-energization is typically 8 to 14 weeks.

What is CleanPowerSF and how does it affect solar?

CleanPowerSF is San Francisco's community choice aggregator (CCA), operated by the SF Public Utilities Commission. It procures electricity from cleaner sources (higher renewable content) for San Francisco residents who have not opted out. For solar net metering, CleanPowerSF customers follow the same PG&E NEM 3.0 Solar Billing Plan structure as standard PG&E customers. PG&E handles all distribution, wires, billing, and export credit calculations. Switching to or from CleanPowerSF does not change your solar export credits.

How much does solar cost in San Francisco in 2026?

A typical residential solar system in San Francisco costs approximately $2.59 to $3.18 per watt installed (EnergySage and SolarReviews May 2026 data). The higher end reflects older building stock permitting complexity, structural engineering requirements for Victorian and Edwardian homes, and the cost of SF DBI and SF Fire Department coordination. For a standard 6 kW system at a midpoint of $2.89 per watt, the gross cost is approximately $17,340. No federal residential credit applies in 2026. Battery storage adds approximately $10,000 to $15,000.

Is a seismic resilience argument for solar valid in San Francisco?

Yes. A solar-plus-battery system can maintain critical loads (lights, refrigeration, medical equipment, phone charging) during a grid outage caused by a Hayward Fault seismic event. San Francisco has significant earthquake risk; the USGS places the Hayward Fault probability of a major event above 30% in the next 30 years. A properly sized battery system can provide 8 to 24 hours of essential load coverage depending on battery capacity and home usage. This is a legitimate preparedness value that is separate from and in addition to the utility bill savings. No financial guarantee attaches to resilience performance; consult your installer for system sizing specific to your critical loads.

More solar resources for California:

California solar guide All cities

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Solar Installers in San Francisco, CA: Your 2026 Guide