Solar vs. Electricity Cost Comparison in San Jose, CA
See how solar energy compares to grid electricity costs over 25 years in San Jose. Based on local electricity rates of 34¢/kWh and an average monthly bill of $255, here is what homeowners can expect.
Cumulative Cost Over 25 Years
System Details for San Jose
Your Solar System
- System Size
- 4.8 kW
- Number of Panels
- 12
- Gross Cost
- $13,680
- Federal Tax Credit (30%)
- -$4,104
- Net System Cost
- $9,576
Local Energy Data
- Electricity Rate
- 34¢/kWh
- Average Monthly Bill
- $255/mo
- Peak Sun Hours
- 5.4 hours/day
- Utility Company
- Pacific Gas & Electric (PG&E)
- Net Metering
- partial
- Annual Production (est.)
- 9,461 kWh
How We Calculate Your Cost Comparison
Our comparison projects costs over 25 years, the typical warranted lifespan of solar panels. Grid electricity costs assume a 3% annual rate increase, which aligns with the historical national average. Solar costs include the net system cost after federal and state tax credits, plus $150 per year for maintenance.
The break-even point is where the cumulative cost of solar drops below the cumulative cost of grid electricity. After this point, every year of solar use puts money back in your pocket compared to what you would have spent on traditional electricity.
Solar panel output degrades at approximately 0.5% per year, which is factored into our calculations. Even with this degradation, most systems produce over 87% of their original output at year 25.
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