If you own a home in Southern California, chances are someone has knocked on your door — or slid into your DMs — trying to sell you solar panels. And you've probably wondered: Is this actually worth it? Does it really save me money? And what are all these new rules I keep hearing about?
As a REALTOR® with over 25 years of experience selling homes in the Inland Empire, I get asked about solar constantly — from buyers, sellers, and homeowners who just want a straight answer. So let's break it all down.
💡 Does Solar Actually Save You Money?
The short answer: yes — but it depends on how you go about it.
California has the highest average residential electricity rates in the continental U.S., which is actually one of the biggest arguments in favor of going solar. Utility rates have increased six times in 12 months between 2024 and 2025 with no stabilization expected, and solar installations lock in energy costs for 25+ years while utility customers face 6% to 10% annual rate increases.
Think about that. If your electricity bill is $300–$400/month today, what will it look like in 10 years?
Homeowners who purchase solar and battery systems with cash can expect bill offsets of 70–90% and payback periods between 5–7 years — far greater savings potential and a shorter payback period than almost any other place in the country.
The key word there is owned — not leased, not financed through a solar company's PPA (Power Purchase Agreement). We'll get to that in a moment.
📋 The New Rules: What Changed with NEM 3.0
This is where things get a little complicated, but stay with me — because understanding this could save you thousands.
In April 2023, California changed its solar policy with something called Net Energy Metering 3.0 (NEM 3.0). Under the old rules (NEM 2.0), when your solar panels produced more electricity than you used, you could sell that excess power back to the grid at nearly full retail price. That made solar a no-brainer for most homeowners.
NEM 3.0 cut the export rate credited to rooftop solar owners by about 75%. The new rules shifted to an "avoided cost" structure, crediting homeowners only for what utilities saved by not buying that power elsewhere — typically around 8 cents per kWh instead of the full retail rate.
That's a big deal. For a solar panel system that lasts 25 years, that translates to a loss of nearly $20,000 in savings compared to the old rules.
What does this mean for you?
Under NEM 3.0, simply putting panels on your roof and sending power back to the grid no longer pays off the way it used to. People who install a battery will save more money than those who don't. By collecting energy during the day, homeowners can use their own power during peak periods instead of paying for it at high rates.
In other words: solar + battery storage is the new winning combination.
🔋 Battery Storage: No Longer Optional
Battery attachment rates increased from 11% before 2023 to over 50% by April 2024, with some installers reporting 60–90% rates. The market has spoken — savvy California homeowners are pairing their panels with a battery backup system to maximize savings under the new rules.
A battery lets you store the energy you generate during the day and use it at night or during peak hours — when electricity costs the most. Instead of selling your power back at a discount, you're using it yourself at full value.
⚠️ The Federal Tax Credit: The Window Has Closed
Here's something that deserves its own section because it directly affects your wallet.
The 30% federal solar tax credit — which used to knock $4,800–$6,400 off a typical system — required installation by December 31, 2025. That deadline has passed and that incentive is no longer available for new installations. It represented approximately $9,000 in savings for the average homeowner.
If someone quoted you solar prices a year ago, get a fresh quote today — and make sure whoever quotes you is being fully honest about the current incentive landscape.
🏠 How Many Panels Do You Actually Need — And What Does It Cost?
This is one of the most common questions I get, so let's get specific.
Number of Panels
Square footage gives you a ballpark, but your actual monthly kWh usage on your Edison bill is the real number that matters. Two 2,000 sq ft homes can need completely different system sizes if one has a pool, an EV, or runs AC all summer. In the Inland Empire, our heat means most Redlands-area homes run higher than the state average.
That said, here are the general guidelines:
- 1,500 sq ft home: typically 15–20 panels, or a 4kW to 6kW system
- 2,000 sq ft home: typically 16–21 panels, or a 6kW to 8kW system
What It Costs
In California, solar currently runs between $2.50 and $3.50 per watt before incentives:
- 1,500 sq ft (5–6kW system): roughly $12,500–$21,000
- 2,000 sq ft (6–8kW system): roughly $16,000–$21,440
Don't Forget the Battery
Under NEM 3.0, a battery is essentially required to maximize your savings. A quality home battery — like a Tesla Powerwall or Enphase system — adds roughly $10,000–$15,000 to your total. It's a significant addition, but without it you're leaving money on the table every single day under the current rules.
Realistic Budget for a Redlands Area Home
For a typical 1,500–2,000 sq ft home in the Inland Empire — factoring in our heat and AC usage — budget realistically $25,000–$40,000 for panels plus battery with no federal tax credit currently available. The payback period runs approximately 7–11 years depending on your usage, and your Edison bill would drop to that small minimum monthly connection fee.
🚫 Common Solar Myths — Busted
The solar industry is full of bold claims and marketing language that sounds great but doesn't always tell the whole story. Here are the ones I hear most often:
MYTH #1: "Going solar means you'll never pay an electric bill again."
Not quite. You will still have an active Edison account and you will still receive a monthly bill. What changes is the size of that bill. If your system is properly sized for your home's energy usage, your Edison bill can shrink to close to the minimum monthly connection fee — currently around $10–$15/month for Southern California Edison customers. But it doesn't go to zero, and Edison isn't going away.
MYTH #2: "Solar locks in your energy rate for 25 years."
This one needs a closer look because it's partially true — but not in the way most people think. Your solar loan or purchase price is fixed. That payment never goes up. But Edison still bills you for whatever your panels don't cover, and their rates absolutely continue to rise.
Here's the real picture: instead of paying Edison $300/month and watching that climb to $400 or $500 over the years, you're paying a fixed solar loan payment plus a small Edison bill. As Edison's rates increase, your savings grow because you're generating more of your own power at a cost that never changes. Over 25 years in California — where rates have been rising 6–10% annually — that difference adds up significantly.
So "locking in your rate" really means: your cost of generating your own power is fixed, and your dependence on Edison's ever-rising rates is reduced. That's a genuine benefit. It's just not the same as Edison freezing your rate or disappearing from your life entirely.
MYTH #3: "Just add panels — no need for a battery."
Under the old net metering rules (NEM 2.0), this was true. You could export extra power to the grid and get credited at nearly full retail price. Under NEM 3.0, that credit dropped by about 75%. Today, without a battery, you're essentially giving your excess power away at a steep discount. A battery lets you store what you generate and use it yourself during peak hours — which is where the real savings are now.
MYTH #4: "A solar lease is just as good as owning."
This is the one that catches sellers off guard. When you lease solar panels, you don't own them — a solar company does. That means the value doesn't transfer to your home the way owned systems do. Buyers can be hesitant to take over a 20-year lease obligation, and it can become a negotiating hurdle at the closing table. If building equity and resale value matter to you, ownership is the smarter path.
MYTH #5: "All solar companies are basically the same."
They are not. Licensing, equipment quality, warranty terms, system sizing, and post-install support vary enormously. A system that's undersized saves you less. A company that goes out of business leaves you without warranty support. Always verify a contractor's license with the California Contractors State License Board (CSLB) and ask for references from local homeowners before signing anything.
🏡 What About When You Sell Your Home?
This is where it gets really interesting — and where my perspective as a REALTOR® adds some important color.
Owned solar systems are a genuine asset at resale. New research analyzing 5,000 California home sales shows that solar installations are driving property value increases of 5% to 10% — for the average California home, that's a boost of $39,500 to $79,000 in resale value. Solar homes also sell 13.3% faster, and 44% of buyers prioritize utility costs when shopping for a home.
But here's the catch with leases:
Third-party-owned systems (leases/PPAs) do not consistently increase home value or resale value, as buyers may be wary of taking over contracts. I've seen this firsthand in transactions — a solar lease can actually slow down a sale or become a negotiating point that costs the seller money.
And there's a newer rule to know about — AB 942:
California's AB 942 introduced a key change: if a home with solar panels is sold, the new owner must adopt the current NEM tariff structure, which is NEM 3.0. This means buyers will no longer benefit from the previous homeowner's grandfathered agreement and will be subject to lower compensation rates for excess solar energy. If you're selling a home with a NEM 2.0 system, that favorable rate does not transfer to the buyer.
✅ So… Is Solar Worth It?
Here's my honest take as both a real estate professional and a local homeowner:
Solar CAN be worth it in California — especially with these conditions:
- You own the system outright or finance it in your name (not a lease)
- You pair it with battery storage
- Your monthly electricity bill is $200 or higher
- You plan to stay in your home for at least 7–11 years
- You work with a reputable, licensed installer
Be cautious if:
- You're being offered a lease or PPA with a long-term contract
- The installer is pressuring you to sign quickly
- You're planning to sell within the next 2–3 years
- No one is clearly explaining NEM 3.0 and what it means for your system size
- Anyone is quoting you numbers that still include the 30% federal tax credit — that's no longer available
🏠 A Note for Buyers and Sellers
If you're buying a home with solar, ask these questions:
- Is the system owned or leased?
- What is the remaining payback period?
- Is it NEM 2.0 or NEM 3.0? (Remember: per AB 942, it transfers as NEM 3.0)
- How old is the system and what's the warranty?
If you're selling a home with solar, let's talk. How it's presented in the MLS and to buyers can make a significant difference in how much value you actually capture from that investment.
Have questions about solar and how it affects your home's value in Redlands, Loma Linda, or the surrounding Inland Empire? I'm happy to walk you through what I see in the market every day.
Cristina Caministeanu | REALTOR® | eXp Realty of California 📞 (909) 213-8565 | 🌐 https://www.stagedbyreveal.com Serving San Bernardino, Riverside & Orange Counties
