Solar Payback in El Dorado Hills: Real Numbers for 2026

By Mark O’Connor · Independent Energy Consultant · CA HIS #164591 SP · May 6, 2026

This page works through real EDH solar payback math: gross system cost, every stackable incentive, monthly savings projection, payback period, and 25-year cumulative. With OBBBA having terminated the federal credit after December 31, 2025, the math for a new install differs meaningfully from what 2025 buyers saw. Below is what to expect for a typical EDH home.

What Makes EDH Favorable for Solar

El Dorado Hills sits in the top quartile of California for solar economics. Three local factors compound:

1. Production potential: 1,500-1,700 NREL kWh/kW/yr

EDH’s combination of latitude (38.7°N), elevation (~600 ft), and Mediterranean climate produces strong solar yield. Typical NREL PVWatts output for EDH addresses runs 1,500-1,700 kWh per kW of installed capacity per year — meaningfully better than coastal Bay Area (~1,300-1,400) or even Sacramento valley floor. That extra 10-20% production directly reduces payback period.

2. Home stock built 1995-2010 with solar-friendly roofs

EDH subdivisions like Serrano, Promontory, Greyhawk, Stonebriar, and adjacent Cameron Park communities were built in an era of growing solar awareness. Most have south or southwest-facing primary roofs, modern roof materials, and clean-line architectural designs that accommodate panel arrays without weird splits or shading from gables. The roof inventory is generally solar-suitable.

3. Bill profile lands in tier 3

EDH home sizes (typically 2,500-4,500 sqft) plus central AC, pools, and EV adoption push most household usage well into tier 3 territory under PG&E’s tiered or time-of-use plans. Tier 3 marginal rates are the highest in the bill structure — which is exactly where solar production replaces value. The dollar saved per kWh of solar in EDH is among the highest in PG&E territory.

Combined: strong production × suitable roofs × high-margin displaced PG&E = favorable economics.

The Real Numbers: A Typical 2025 EDH Install

Below is illustrative math for a typical EDH home that installed 9 kW solar + 2 Powerwall batteries in 2025, when the federal credit and Tesla rebate were both live. A 2026 install drops those two rows — see the post-OBBBA section below for how that shifts payback. These are illustrative, not your specific numbers — your actual payback depends on your roof, your usage, your rate plan. Get a personalized audit for real numbers.

Customer profile: 4-bedroom, 3,200 sqft home, ~14,000 kWh/year usage (with central AC), $325/month PG&E bill = $3,900/year.

Monthly + annual savings

The 9 kW system in EDH produces ~13,500 kWh/year (using Google Solar API per-roof estimates, which we now use for all audits at lowermypge.com). Combined with the 2 Powerwall batteries enabling time-shifted self-consumption under NEM 3.0, this household’s solar production covers ~95% of annual consumption.

• Pre-solar PG&E: $325/month = $3,900/year
• Post-solar PG&E: ~$30/month (minimum interconnection charges) = $360/year
• Annual PG&E savings: ~$3,540/year, growing with PG&E’s ~10% historical rate increases

Payback math

Assumptions: 10% annual PG&E rate escalation (Mark’s locked rate per locked memory; matches CPUC-approved historical pattern). Solar-inverter degradation at 0.5%/year. Battery replacement cost not included; modern Powerwall warranties cover 10 years.

Payback at year ~6. From year 7 onward, this household earns the full PG&E displacement back as net savings every year, growing with rate increases. Cumulative 25-year savings: ~$313,000, although your actual will depend on your specific bill, roof, and rate trajectory.

What Changes Your Specific Payback

The numbers above are illustrative for a 4-bedroom EDH home with $325/month PG&E. Your actual payback depends on:

• Bill size. $200/month bill → smaller dollar savings → longer payback. $500/month bill → larger savings → shorter payback. Linear-ish relationship.
• Roof orientation + shade. South-facing unshaded roof: ideal. East/west: 10-15% production penalty. Heavy shade: can reduce production 30%+, sometimes disqualifying.
• System size. Sized for 100% offset: maximum savings, longest payback (more capital). Sized for 80% offset: faster payback, residual PG&E bill remains.
• NEM tier. NEM 2.0 grandfathered customers get retail-rate exports vs NEM 3.0’s 25%. Worth $1,500-2,500/year for typical existing solar households — covered in the NEM 3.0 explainer.
• Rate plan. Currently on E-1 vs E-TOU-C vs EV2-A changes the per-kWh rate solar replaces. Picking the right rate plan is a separate optimization.
• Tax liability (2025-era installs). The federal 30% credit was non-refundable — it took owed taxes to monetize, and carry-forward provisions helped households that couldn’t claim it all in year 1. For systems placed in service after December 31, 2025 the credit no longer applies, so this factor drops out of new-install math.
• Future loads. Adding an EV or heat pump after install absorbs system over-sizing as load growth, accelerating effective payback because each new kWh of consumption is solar-supplied vs PG&E-purchased.

The Honest Cases When EDH Solar Doesn’t Pencil

For all the local advantages, EDH solar isn’t universal. For about 1 in 3 EDH audits I run, the honest answer is stay with PG&E. The honest reasons:

• Bill consistently under $150/month. Smaller condos, seasonal-use properties, or low-occupancy households. Total kWh consumption isn’t enough to justify system cost over a reasonable payback period.
• Heavy oak or pine shade. Some EDH lots, especially older Cameron Park properties or Greyhawk lots backing wooded ravines, have mature trees that shade the south-facing roof through most of the day. Production drops can be 30-50%+, killing the math.
• Planning to move within 5 years. Solar adds resale value (especially owned solar with NEM 2.0 grandfathering), but the payback period generally requires 7+ years of ownership to fully realize. Selling in year 3 means leaving most of the value on the table.
• Roof needs re-roofing within 5 years. Removal-and-reinstall costs $3,000-5,000 each time. Pay it twice within 5 years and the math gets ugly. If the roof needs replacement soon, do that first, then install solar on the new roof.
• CARE/FERA customers. CARE’s discounted rates make solar’s relative savings smaller — there’s simply less bill to beat. Math sometimes still works, but with longer payback.

If you fit any 2+ of these criteria, an audit will probably come back “stay with PG&E” — and that’s the right answer. You should get to know that with confidence. Three real levers for lowering your PG&E bill covers what to do instead.

Decision Framework

If you’re in EDH considering an install now

The federal credit window closed December 31, 2025, so today’s decision runs on the post-credit math. It still works for most homes paying $250+/month, just with longer payback (8-12 years instead of 6-9). Stack the California Section 73 property tax exclusion and CCA/Pioneer generation rates where applicable. Full incentive stacking guide is here.

If you already have NEM 2.0 EDH solar

You’re grandfathered for 20 years from your original PTO date. Adding a battery or expansion: be careful which add-on type you choose. NEM 3.0 explainer covers what triggers re-permitting vs preserves NEM 2.0.

If you’re in EDH but considering whether solar fits

The honest framework is in Is Solar Worth It in California? — covers when solar IS a fit vs when it ISN’T, with specific honest criteria you can self-evaluate.

Frequently Asked Questions

For a typical EDH home with a $300/month PG&E bill installing solar today (post-OBBBA, without the federal credit), payback typically runs 8-12 years; 2025 installs that captured the federal 30% credit saw 6-9. After payback, the system continues producing free electricity through its 25-year warranty. Total 25-year savings: $80K-150K depending on system size, exact bill, and rate trajectory.

Gross system cost for a typical 9 kW + 2 Powerwall configuration: $32K-40K installed. For 2026 installs the federal credit no longer applies, so net cost sits close to gross, offset by the Section 73 property tax exclusion. Homes that installed in 2025 with the full incentive stack typically landed at $20K-28K net.

Three factors compound: (1) production potential 1,500-1,700 NREL kWh/kW/yr (top quartile of California); (2) home stock built 1995-2010 with south-facing roofs designed for solar; (3) bill profile lands in PG&E’s tier 3 territory where marginal rates are highest, maximizing displaced value per kWh.

For most EDH homes paying $250+/month to PG&E, yes. The exceptions: smaller bills under $150/month, heavy oak shade, planning to move within 5 years, or roof needing re-roofing soon. For about 1 in 3 EDH audits, the honest answer is stay with PG&E — the other 2 finally have an option.

For a typical EDH home with a $325/month PG&E bill, 25-year cumulative savings typically run $80K-150K — the total is driven mostly by escaping PG&E rate escalation, so it holds for 2026 installs too, with the incentive difference showing up in payback timing. Larger homes consuming 18,000+ kWh/year can exceed $200K over 25 years. Range reflects bill size, system config, NEM tier, and load growth.

NEM 3.0 (post-April 2023 installations) added 1-2 years to typical payback compared to NEM 2.0. Export rates dropped from retail (~$0.30/kWh) to avoided-cost (~$0.05-0.08/kWh average). The fix is pairing solar with a battery to time-shift midday solar into 4-9pm peak hours, capturing the difference yourself. With proper battery sizing, NEM 3.0 EDH systems still pencil.

Solar doesn’t pencil for EDH homes when: bill is consistently under $150/month, heavy oak/pine shade covers the primary south-facing roof, planning to move within 5 years, roof needs re-roofing within 5 years, or homeowner is on CARE/FERA where discounted rates leave less bill to beat. About 1 in 3 EDH audits hit one of these — the right answer for them is stay with PG&E.