City of Palo Alto and solar
City of Palo Alto is a municipal utility serving about 25,672 homes in California. Here's what its rates and export rules mean for solar: for a typical customer, solar is a close call.
- Average price (2026 est.)
- 22.5¢32% below California average
- Typical bill
- $116516 kWh a month
- Exports credited
- ~18%Net billing (reduced export credit)
- Typical payback
- 14.1 yrs3 kW, cash
Export rules for City of Palo Alto customers
Net billing (reduced export credit) (California rule).
New customers of PG&E, SCE and SDG&E are on the Net Billing Tariff (often called NEM 3.0): solar you use at home saves the full retail rate, but power you send to the grid is credited at hourly 'avoided cost' values that average only about 4-5 cents/kWh (higher on summer evenings). Batteries greatly improve the economics. Municipal utilities like LADWP and SMUD set their own rules.
Solar for a typical City of Palo Alto home
| System | 3 kW (80% of 516 kWh/month) |
|---|---|
| Cost | $10,700 |
| First-year savings | $678 |
| Payback | 14.1 years |
| 25-year net | $12,797 |
Uses the utility's average price.
Solar adoption
- Homes with solar (2025)
- 1,763
- Share of customers
- 6.9%
- Residential solar capacity
- 10 MW
- Residential customers
- 25,672
EIA-861, 2025.
Questions about City of Palo Alto and solar
Does City of Palo Alto have net metering?
City of Palo Alto follows California's rules: New customers of PG&E, SCE and SDG&E are on the Net Billing Tariff (often called NEM 3.0): solar you use at home saves the full retail rate, but power you send to the grid is credited at hourly 'avoided cost' values that average only about 4-5 cents/kWh (higher on summer evenings). Batteries greatly improve the economics. Municipal utilities like LADWP and SMUD set their own rules.
How much does electricity cost with City of Palo Alto?
Residential customers paid an average of 21.4¢ per kWh in 2025 (EIA), about 22.5¢ adjusted to 2026. The typical home uses 516 kWh a month, a bill of about $116.
Is solar worth it with City of Palo Alto?
For a typical customer, solar is a close call: a 3 kW system costing about $10,700 pays back in about 14.1 years, with $12,797 net over 25 years.
How many City of Palo Alto customers have solar?
About 1,763 homes had net-metered solar at the end of 2025, roughly 6.9% of residential customers (EIA-861).
Legal name: City of Palo Alto - (CA) (EIA ID 14401). Data: EIA-861 2025 and monthly data through 2026, state policy research October 2026.