The math on plug-in solar in California is straightforward: take some of the highest electricity rates in the country, add 260+ days of sunshine per year, and the savings add up fast.
This page shows realistic, conservative savings estimates for NEM 1.0 and NEM 2.0 customers based on actual California NEM credit rates.
Unlike standalone plug-in solar, Bright Saver's NEM Expansion Kits work with your existing rooftop solar and net metering agreement. Every kilowatt-hour your backyard panels generate either:
Either way, you save. The conservative estimates below use NEM credit rates only, since that's the baseline value of every kWh produced.
At NEM rates of ~$0.30/kWh:
| System | Price + Tax* | Annual NEM Credits | Payback | 10-Year Net Savings |
|---|---|---|---|---|
| NEM 2-Panel | $1,649 | $360/year | 4.6 years | $1,951 |
| NEM 4-Panel | $2,583 | $660/year | 3.9 years | $4,017 |
At NEM rates of ~$0.32/kWh:
| System | Price + Tax* | Annual NEM Credits | Payback | 10-Year Net Savings |
|---|---|---|---|---|
| NEM 2-Panel | $1,649 | $384/year | 4.3 years | $2,191 |
| NEM 4-Panel | $2,583 | $704/year | 3.7 years | $4,457 |
At NEM rates of ~$0.36/kWh — the highest of any major California utility:
| System | Price + Tax* | Annual NEM Credits | Payback | 10-Year Net Savings |
|---|---|---|---|---|
| NEM 2-Panel | $1,649 | $432/year | 3.8 years | $2,671 |
| NEM 4-Panel | $2,583 | $792/year | 3.3 years | $5,337 |
*Includes 10% estimated sales tax.*
California electricity rates have been rising 5 to 8% per year consistently. Your NEM credits grow as rates increase, but your kit cost is locked in at day one.
| Year | PG&E NEM Rate | 2-Panel Credits | 4-Panel Credits |
|---|---|---|---|
| Year 1 | $0.30/kWh | $360 | $660 |
| Year 5 | $0.37/kWh | $444 | $814 |
| Year 10 | $0.47/kWh | $564 | $1,034 |
| Year 20 | $0.76/kWh | $912 | $1,672 |
Over 20 years, a 2-panel kit generates over $11,000 in cumulative NEM credits on a $1,649 investment. A 4-panel kit generates over $21,000 on a $2,583 investment.
| Investment | Cost | Annual Return | Payback |
|---|---|---|---|
| Plug-in solar (PG&E) | $1,649 | $360/yr (22%) | 4.6 yrs |
| Plug-in solar (SDG&E) | $1,649 | $432/yr (26%) | 3.8 yrs |
| High-yield savings | $1,649 | ~$74/yr (4.5%) | Never |
| S&P 500 (hist. avg) | $1,649 | ~$165/yr (10%) | Never |
Plug-in solar returns 22-26% annually in avoided electricity costs — and the return grows as rates increase. Unlike financial investments, this return is tax-free (you're avoiding a cost, not earning income).
Got an EV last year, true-up bill went from $200 to $800. Added a 2-panel NEM Expansion Kit in the backyard. $360/year in additional NEM credits, offsetting about half the EV charging cost. Payback in 4.6 years, then free credits for 15+ more years.
San Diego homeowner, SDG&E, NEM 1.0:4-panel kit in the backyard. At SDG&E's higher rates, earning $792/year in NEM credits. System pays for itself in 3.3 years. Over 20 years, $15,000+ in cumulative savings.
LA homeowner, SCE, NEM 2.0:Added a heat pump, electricity usage jumped. 2-panel kit on the patio. $384/year in NEM credits. The kit cost less than two months of the increased electricity bill.
When your home is using more electricity than your panels produce (common during high-use periods), the solar energy gets consumed directly. In that case, you're saving at your full retail rate — which is even higher than the NEM credit rate.
The estimates above use only the NEM credit rate ($0.30-$0.36/kWh), so your actual savings may be higher if your home consumes a significant portion of the solar output directly.
Free pickup from our Oakland or Los Angeles warehouses. Delivery + installation support available within 50 miles of Oakland for $349.
*Bright Saver is a 501(c)(3) nonprofit. Our mission is making solar accessible to every American.*