Chico, California Solar Panel Cost: Savings and Payback (January 2026)

You'll spend an average of $10,815 on a 5 kW system in Chico, California, after tax incentives.
For Chico, you can use $3.09 per watt to determine the price of a larger system (system size x price per watt x 0.7 to account for tax incentives).

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Brogan Woodburn

Last updated: January 29, 2026

Fact checked by: Alex Zdanov

How much do solar panels cost in Chico, CA?

Cost: About $2,163 for a 1 kW system to $10,815 for a 5 kW system after tax credit.
Savings: 4 year payback; about $42,917 saved over 20 years.
Environmental benefits: Potential to reduce your carbon emissions significantly.

Installing a 5 kW solar panel system on your Chico home can cost about $10,815 after tax incentives. Solar panel systems are measured by kW production, and the average system costs about $3,087 per kW of installed capacity. Looked at another way, you'll pay about $3.09 per watt for installation.

That said, our data shows a 4 kW system is the best size for Chico residents. This is because people in Chico consume 521 kWh per month of energy. The average electric bill is $224 per month with an average price of 42.98c per kWh. Considering this average, the right solar panel system has the potential to save you money in Chico.

Are solar panels worth it in Chico?

Let's take a closer look at whether solar panels are worth it. To figure this out, you'll want to compare your estimated savings after solar to what you'd pay in energy without solar panels.

The payback period is the amount of time until you break even on your investment considering savings from energy bills. And the net 20-year savings is what you save over 20 years minus the upfront costs. Considering energy prices tend to rise over time, it's usually worth it to get solar panels if you can get a good installation price.

5 kWh System	Chico Average	U.S. Average
Upfront Cost	$10,815	$12,530
Payback period	4 Years	7 Years
Net 20-year savings	$42,917	$23,493
*These are estimates. Getting personalized quotes from local installers is crucial for accurate pricing.

What's the best solar system size in Chico, California?

To find out the right size of the solar system for your home, consider your energy usage, local sun hours, and available roof space. Here's what the average solar potential looks like in Chico:

Roof size: 929.5 sq. ft.
System capacity: Up to 19,205.015 kW DC
Electricity production: About 1,620.201 kWh AC per year

The goal with solar panels is to find the sweet spot where you generate the electricity you need and can save enough energy costs to recoup your investment in a reasonable time.

Below you can see power generation, cost, and savings of different system sizes.

	1 kW System	2 kW System	3 kW System	4 kW System	5 kW System
Roof Space	72 ft² ft2	143 ft² ft2	215 ft² ft2	286 ft² ft2	358 ft² ft2
Annual power value	$696	$1,393	$2,089	$2,686	$2,686
Average cost	$2,163	$4,326	$6,489	$8,652	$10,815
Average yearly production	1,620 kWh	3,240 kWh	4,860 kWh	6,480 kWh	8,101 kWh
Average monthly savings*	$58.03	$116.06	$174.10	$223.84 best value	$223.84
Full payback period	1 years	2 years	2 years	3 years	4 years
CO2 reduction per year	0.27 tons	0.53 tons	0.80 tons	1.02 tons	1.02 tons
*Savings assume a $223.84 monthly electricity bill

How to pay for solar panels in Chico, California

Purchasing solar panels is no small task. Here are a few ways you can pay for solar:

Cash purchase: This is the best choice if you can afford it. Paying in cash gives you the best long-term savings but requires a larger upfront investment, of course.
Solar loans: You can spread the cost over time with a loan, but be mindful of interest rates and loan terms.
Solar leases and PPAs: Power purchase agreements (PPA) and leases have lower upfront costs. However, you don't own the system, which means you save the least over time. There can also be complications if you want to sell your home.

What affects the cost of solar panels in Chico?

Several factors impact the final price of your solar installation:

System size: Larger systems cost more upfront but often yield greater long-term savings.
Panel type and efficiency: Monocrystalline panels are generally more efficient and expensive than polycrystalline or thin-film options.
Installation complexity: Roof type, shading, and site-specific challenges can increase installation costs. Permitting and inspection fees also factor in.
Additional considerations: Battery storage adds to the initial investment but provides backup power and greater energy independence. Labor and installation quality are also essential cost considerations.

How to save on Chico, CA solar panel costs

Getting the most bang for your buck is essential when investing in solar. Here are some strategies to save money:

Maximize the federal tax credit: Understand the eligibility requirements and claim the full 30% credit.
Shop around for quotes: Get quotes from multiple installers to compare pricing and services. Don't just focus on the lowest price; consider reputation, experience, and warranty.
Consider system size: Be careful of going overboard. A properly sized system will meet your energy needs without unnecessary costs. Analyze your energy usage to determine the optimal size.
Explore financing options: Compare loan interest rates and terms carefully. If considering a lease or PPA, understand the long-term implications and potential trade-offs. Cash purchases often offer the best long-term savings.
Negotiate with installers: Don't be afraid to negotiate on price. Inquire about any discounts or promotions they may offer.
Optimize your home's energy efficiency: Before going solar, improve your home's energy efficiency. This will reduce your overall energy consumption and potentially allow you to install a smaller, less expensive solar system. Simple steps like sealing air leaks and upgrading appliances can make a difference.
DIY (if possible and permitted): While professional installation is generally recommended, some homeowners may be able to handle certain tasks themselves (like site preparation). Check your local regulations and be honest about your abilities.
Ask about rebates and incentives: Many states, cities, and utility companies offer rebates, net metering, and other incentives. Check with your local utility and city/county for any available programs.
Time your installation: Sometimes, installers offer discounts during slower periods. Inquiring about seasonal promotions might yield savings.

California-specific solar considerations

Weather Impacts: California offers diverse climates—from sun-soaked inland areas to cooler coastal regions. This means your solar performance can vary a bit by location, and you might need to tweak your system design to handle everything from wildfires to coastal fog.
Regulatory and Legal Considerations: California is known for its rigorous building and electrical codes, so working with a professional installer is a must. Also, many communities have their own guidelines, so check with local HOAs or zoning boards to ensure your setup meets all the standards.

Get a custom solar quote in Chico

Solar panels are worth it for many homeowners considering energy costs tend to rise over time. Compare your ongoing energy costs to the cost of a solar panel system to see if it's worth it for your Chico home. We recommend getting a few quotes from different solar installers to find the best option.

Solar panel pricing in cities near Chico, California

Compare solar panel prices with neighboring cities.

Or look in a different location.

FAQs about Chico, CA solar panels

How much do solar panels cost in Chico, California?

Our data shows solar panels can range from $2,163 for a 1 kW system to $10,815 for a 5 kW system after tax credits. Total costs depend on the panel brand, type of inverter, installation company, and more.

How do I pay for solar panels?

The best ways to pay for solar panels include using cash or finding a loan with a good interest rate. We recommend avoiding power purchase agreements or solar panel lease programs since these reduce your savings significantly.

How much can I save with solar panels in Chico?

How much you save depends on your current energy costs, usage, and the size of the system you need. Our data shows the average 5 kW system in Chico saves owners $42,917 over a 20-year period.

Do solar panels work during a power outage?

Grid-tied solar panels typically shut off during a power outage to protect utility workers. If you want security for outages in Chico, you can get a battery storage system to have a backup power supply.