Plug-in solar savings on City of Palo Alto Utilities
Last updated
The short answer: on City of Palo Alto Utilities's E-1 rate of 23.98¢/kWh,[source] the example kit (800 W, $1,000) saves about $190 a year and pays for itself in about 5.3 years, assuming typical placement and that you use most of its power at home.
What the example kit saves on City of Palo Alto Utilities
| Where the panels go | Saves a year | Pays back in |
|---|---|---|
| Excellent: south-facing, tilted, no shade | $250 | 4.0 years |
| Typical: well-placed | $190 | 5.3 years |
| Shaded or vertical balcony | $138 | 7.2 years |
Power you send back to the grid is valued at $0, so a kit sized to what you use during the day saves the most. Run your own numbers, including how savings add up over the years.
Where this rate comes from
Our sum of Palo Alto's E-1 residential schedule, effective July 1, 2026: commodity, distribution and public benefits ($0.00631). That is $0.21494 for the first 15 kWh a day and $0.23975 above that, all year. We use the upper tier. The percentage utility users tax is excluded.[source]
Discounts
CARE and FERA are CPUC programs for investor-owned utilities, so they don't apply here. City, district and co-op utilities run their own discount programs, which we haven't verified.
SB 868 and City of Palo Alto Utilities
SB 868 covers local publicly owned utilities such as City of Palo Alto Utilities, as well as investor-owned utilities. City of Palo Alto Utilities may ask you to register a qualifying kit through a simple online form, but can't charge fees related to it.[source] Read SB 868 explained and run through the checks before you buy.
Estimates only. Not electrical, legal or financial advice.
Frequently asked questions
- How much could a plug-in solar kit save on City of Palo Alto Utilities?
- About $190 a year for an example 800 W kit with typical placement, at City of Palo Alto Utilities's E-1 rate of 23.98¢/kWh, paying back in about 5.3 years. Your result depends on your usage and where the panels go.
- Does SB 868 apply to City of Palo Alto Utilities customers?
- Yes. The law covers both investor-owned and local publicly owned electric utilities. City of Palo Alto Utilities may ask you to register a qualifying kit online, but can't charge fees related to it.