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California · Daly City

Daly City solar: the city publishes two different rules

Written by the Solar Learning Lab research deskUpdated August 26, 202612 min read

Ask Daly City what its automated solar permitting covers and you get two answers, both official. The SolarApp page says the program handles residential solar up to 38.4 kW AC and paired energy storage up to 38.4 kW AC. The Solar Energy Systems page says the city is currently only using the program for PV installs under 10 kW with no battery proposed. Same city, same program, two scopes that do not overlap for a large chunk of real projects.

We are not going to pretend to resolve that for you, because we cannot. What we can do is map both routes, show why the disagreement probably exists, flag the $450 fee that replaced an older $500 document still floating around online, and explain the business license requirement that quietly stalls out-of-town installers. If your project has a battery, the second half of this page matters more than the first.

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38.4 kW on one page, under 10 kW on the other

Here is the likely origin of the conflict. Back on August 10, 2015, the council adopted Ordinance No. 1393, adding Chapter 15.26 to the municipal code. It defines the small residential rooftop system eligible for streamlining as 10 kW AC or less on a single family or duplex dwelling, implementing AB 2188. The narrower web page tracks that 2015 definition. The broader page tracks the newer state statute, Government Code 65850.52, which requires an automated platform for systems up to 38.4 kW AC with paired storage of the same size, and which lets a jurisdiction decline automated permitting only when the configuration is not eligible for SolarAPP+ at submission time.

The state's scorecard adds a wrinkle. The CEC tracking dataset, last updated August 3, 2026, lists Daly City on the SolarAPP+ platform with an $80,000 CalAPP grant awarded March 22, 2023, and shows "None" in the annual report column, where neighboring jurisdictions show submitted data. To be fair to the city, that is a reporting record from a self-reported dataset, and the CEC itself says it does not certify whether any platform complies with SB 379. Still, when a city's two pages disagree, call the Building Division at 650-991-8061 and get the answer for your specific project in writing before paying for design work.

For projects that do use the streamlined lane, the published eligibility checklist is concrete: 10 kW AC or less on a one or two family dwelling or accessory structure, roof mounted, within legal building height, utility interactive with no battery, clear of plumbing and mechanical vents, a service panel with a bus bar rated 225 A or less, a load side connection, and a roof layout diagram showing rapid shutdown. If your house still has an old 100 A panel or a crowded roof, the checklist is where that surfaces.

Storage projects take the slow road, both pages agree on that

Whatever the true ceiling on system size, the two city pages converge on one point: batteries add friction. Under the narrower statement, any PV paired with storage, any system above 10 kW, and any commercial project gets emailed to the Building Division rather than run through SolarAPP+, per the Solar Energy Systems page. And even the generous SolarApp page excludes projects with multiple batteries spaced less than 3 feet apart, citing working clearance under CEC 110.26 and the city's Handout 502.

The practical read: a plain rooftop PV job under 10 kW has a defined fast lane in Daly City. A solar plus storage job has a manual review of unstated length, since the city promises only "timely permit review" without a day count. Budget schedule risk accordingly, and make the installer own it in the contract rather than shrugging it onto the city after signing.

The permit is $450 flat. Ignore the $500 document.

Line item 3.51 of the Approved Master Fee Schedule FY 2026 prices a single family photovoltaic permit at $450.00 flat, citing Government Code 66015, the statute that caps residential PV permit fees at $450 up to 15 kW. Larger residential runs $450 plus $15 per additional kW above 15, and commercial tiers start at $1,000 up to 50 kW. The schedule notes its fees flow from Resolution 25-66, adopted April 28, 2025.

The trap is a 2013 fee document that still surfaces online, showing a $500.00 residential PV total built from eight itemized lines, plan review, archive fee, technology fee, and so on. That document is superseded. If a quote carries a $500 Daly City permit line, the installer is working from a stale bookmark, which is a small error that tells you something about their process hygiene.

Also, count the fee events. The city's published sequence has the contractor pay a SolarAPP+ processing fee to the platform, separate from city fees, then pay the city's own invoice on the permitting portal, per the SolarApp instructions. One all-in "permit cost" number is only honest if it names both.

No Daly City business license, no permit

Buried in the city's process steps is the requirement that stalls more Peninsula installers than any code clause: the contractor must hold an active Daly City business license before the permit is issued, per the SolarApp page. An installer based in San Jose or Oakland who has never pulled a Daly City permit has to clear that gate first. Ask the question directly during bidding. It costs you one sentence and can save a week.

The rest of the logistics, for reference. The Building Division sits at 333 90th Street, City Hall 2nd Floor, reachable at 650-991-8061 and 650-991-8070, open Monday through Friday 8:00 a.m. to 5:00 p.m. with final appointments at 4:00, per the Building Division page. Inspections are scheduled by phone at 650-991-8061 once the permit is issued and the work is ready. Counter plan viewing is by appointment, not walk-in.

One bill, two suppliers, one recent name change

Daly City electricity arrives on PG&E wires with generation supplied by the county's community choice aggregator, which was named Peninsula Clean Energy until July 1, 2026 and now operates as WestLight Energy, with the new name on bills since July 17, per the rebrand announcement. The agency has served San Mateo County, Daly City included, since 2016, per its background page. Neither entity replaced the other: PG&E delivers and bills, WestLight Energy supplies generation, and solar economics touch both.

Defaults matter here. Customers sit on ECOplus unless they choose ECO100, the fully renewable product that costs $0.015 per kWh more, about $6.38 monthly for a 425 kWh household, per the rate choices page. And Daly City households tend to be larger than the Peninsula norm, 3.0996 persons per household in the state's 2026 estimates, which usually means more laundry, more cooking, more kWh, and a bigger surface for solar to work on.

Energy sourceTypeAverage priceWhat that means
PG&E E-1 retailtiered residential rate33¢ to 41¢ per kWhTier 1 to Tier 2, effective March 1, 2026. Delivery plus generation.
PG&E E-TOU-C summer peakabove baseline, 4 to 9 p.m.52¢ per kWhThe evening window where imported power hurts most.
EV2-A generation, PG&E vs WestLightgeneration component only11.031¢ vs 5.356¢ per kWhPG&E bundled versus ECOplus, from the joint comparison. Different PCIA vintages apply.
Onsite solarself-consumed kWhfull retail avoided no tariff neededPower used inside the house never meets either supplier's meter math.

Retail figures from PG&E's March 1, 2026 pricing sheet; generation split from the joint rate comparison, which excludes the California Climate Credit.

Export credits: hourly values, a monthly roll, an annual cash out

New interconnections since April 15, 2023 fall under the Net Billing tariff from CPUC Decision 22-12-056. Consumption and production are not netted. You pay incurred charges monthly and settle at an annual true up, with exports credited at values derived from the hourly Avoided Cost Calculator, averaged by month and split between weekdays and weekends or holidays, per the decision. Interconnect during the five year glide path and you lock a nine year schedule of those values. Sizing is capped at 150 percent of the trailing 12 months of usage.

The CCA overlay works like this: your imports are billed at your regular WestLight generation schedule, your exports are credited at the published Energy Export Credit values, accumulating month to month in an Export Credit Balance ahead of the annual cash out, per the CCA Solar Billing Plan page. On the PG&E side you must be on a time of use plan, with automatic enrollment in Electric Home, and export credits never touch non-bypassable charges, per PG&E's guidance. Anyone whose application predates April 14, 2023 keeps the old NEM deal for a 20 year stretch, including a $0.01 per kWh production premium on the CCA schedule, per the legacy NEM page.

This roof peaks in April, and that is not a typo

In most California cities the production curve crests in July. Our Daly City model crests in April, at 156.3 kWh per kW, then slides through the summer as the marine layer arrives: July models at 127.6 and August at 122.1. The climate record explains why. Fog is common here in spring and from early to late summer, and July and August rarely peak over 75 degrees, per the climate background. Annual output lands at 1,477.6 kWh per installed kW.

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

April is the modeled high month at 156.3 kWh per kW. Summer fog trims July and August below spring output, an inversion of the inland California pattern.

PVGIS v5.2 model run by Solar Learning Lab on August 26, 2026, NSRDB radiation database. Fixed south facing mount, 30 degree tilt, 14 percent losses, downtown Daly City coordinates. Your roof will differ. The run comes from the PVGIS tool. Two honest takeaways. First, Daly City produces less per panel than inland cities, so a lowball system size that would work in the Central Valley may disappoint here. Second, the number is satellite data, not folklore, and it is far from zero. A correctly sized system against a real usage history still does its job. What fails in fog country is a system sized from someone else's sunshine.

Sizing input worth knowing: 15,979 of the city's 34,366 housing units, about 46.5 percent, are single detached homes, with another 5,214 single attached, per the state housing estimates. Those attached rowhouse roofs are often small, which pushes toward higher efficiency panels rather than more of them.

What incentive money survived into 2026

Not the homeowner federal credit. Expenditures after December 31, 2025 no longer qualify for the 25D credit, and completion date is what counts, so a project finished in 2026 gets nothing even if it started earlier, per the Congressional Research Service. Treat any 2026 quote showing a federal credit line as a red flag, not a bonus.

Income qualified households have real options. The SGIP Residential Solar and Storage Equity budget, $280 million opened for reservations June 2, 2025, posts $3,100 per kW for solar and $1,100 for storage, with a year after reservation to complete requirements including demand response enrollment, per the CPUC SGIP page. DAC-SASH through GRID Alternatives serves CARE or FERA income qualified customers in top quartile CalEnviroScreen communities through 2030. We located no Daly City municipal rebate; the city's role is process and fees.

Everyone gets two quieter protections. A qualifying system is excluded from property tax reassessment, under a statute currently set to sunset January 1, 2027, per the Board of Equalization. And Civil Code 714 voids HOA restrictions that effectively prohibit solar, which matters in a city where attached homes and shared governance are common.

A shallow local field, so interview harder

Our Google Maps snapshot for Daly City is thin: one company above 80 reviews, All Bay Solar Construction at 84, then Trulysun Energy at 19, then a drop to single digit review counts, including the only firm actually based in Daly City at a 3.4 rating across 5 reviews. Read that as a market served mostly from San Francisco and the wider Peninsula, not as a verdict on any single company. It also raises the value of one specific question: do you hold an active Daly City business license today, and when did you last pull a permit here.

All Bay Solar Construction

San Francisco, CA

4.9(84 Google reviews)

Trulysun Energy

South San Francisco, CA

4.4(19 Google reviews)

Occidental Power

Daly City, CA

3.4(5 Google reviews)

Read the graded profile

Pacifica Solar Installers

5.0(5 Google reviews)

Express Roofing and Solar of Daly City

3.7(3 Google reviews)

Sutro Power

San Francisco, CA

5.0(3 Google reviews)

Ratings snapshot: Google Maps, August 2026, via the DataForSEO SERP feed. Zero companies paid us and none are endorsed by us.

Follow with the scope question this page opened with: does my project qualify for the automated lane under the city's current practice, and if not, what is your realistic manual review timeline. A bidder who cannot answer for Daly City specifically is guessing on your schedule.

Screen a system size for a fog-tempered roof

The estimator below already uses the Daly City production run, which is the most conservative of the Bay Area figures we model, so its output is not inflated by inland sunshine. What it cannot do is simulate hourly export credits or the two-supplier bill. Use it to bracket size and payback pressure, then demand a monthly self-consumption assumption from whoever quotes you.

$161
1,478

The high end of the slider is our Daly City PVGIS run at 1,478 kWh per kW, already the most fog-tempered figure among nearby cities we model. The low end is 85 percent of that, a buffer for a worse roof, not a forecast.

$2.46

Cash quotes in Daly City cluster near $2.46 per watt, against a $3.50 national 2024 median (LBNL). Use your quote.

Assumptions you can change
2.5%
7%
15
24c

Use the rate on your actual lease or PPA quote. There is no published statewide average we trust enough to hardcode.

2%
Estimated system: 3.9 kWAnnual usage: 5,811 kWhState credit: $0

Cash purchase

$9,594 after state credit

Year 1 benefit
$160/mo
Payback
5 years
20 year net position
$36,904

Daly City sits behind two rate layers, PG&E for delivery and WestLight Energy for generation, and export credits follow hourly Solar Billing Plan values. This tool uses a single statewide retail rate instead, so read the result as a screening number for system size.

Solar loan

$128/mo 15 yr payment

Year 1 net
$31/mo
Upfront
$0
20 year net position
$23,404

Financed quotes bundle dealer fees into the per watt price. For a Daly City project, insist on seeing the cash price and the financed price side by side, plus prepayment terms, before comparing against this loan input.

Lease / PPA

$0 down you buy the power

Year 1 net
$44/mo
Upfront
$0
20 year net position
$14,548

With the homeowner federal credit gone after 2025, a lease or PPA rate competes directly with your real PG&E plus WestLight Energy bill. Get the year one rate, the escalator, and the buyout schedule in writing before signing anything.

Estimates, not quotes. Inputs are the California average retail rate, our downtown Daly City PVGIS run, and state market costs. Fog-driven monthly swings, hourly export values, and the CCA generation layer are outside this model. We are a solar installer and we also partner with other solar companies. See our disclosures.

We are a solar installer and we also partner with other solar companies.

Daly City answers, sourced

Which rule actually applies, 38.4 kW or under 10 kW?
Both are published by the city. The SolarApp page states 38.4 kW AC with paired storage; the Solar Energy Systems page limits current use to under 10 kW with no battery. Confirm your project's route with the Building Division at 650-991-8061 before spending on design.
How much does the solar permit cost?
$450.00 flat for single family PV, line 3.51 of the FY 2026 master fee schedule. An older document showing $500 is superseded. A SolarAPP+ processing fee is paid separately from city fees.
Does my installer need anything beyond a contractor license?
Yes. An active Daly City business license is required before the permit is issued, per the city's process page. Out-of-town installers sometimes discover this after the contract is signed. Ask up front.
Is solar even worth it in the fog?
Our model puts a Daly City roof at 1,477.6 kWh per kW per year, peaking in April rather than July. That is below inland cities but a long way from futile, especially against PG&E retail prices of 33 to 52 cents per kWh depending on plan and time, per the March 2026 rate sheet. The risk is not fog. It is a system sized without local data.
What happens to power my panels send to the grid?
Under the Net Billing tariff, exports earn credits based on hourly avoided cost values while imports are billed at your WestLight Energy generation schedule plus PG&E delivery, with a monthly Export Credit Balance and an annual cash out, per the CCA Solar Billing Plan page.

Start a Daly City estimate from your actual bill

Twelve months of bills beat any assumption. Bring what you have and the tool frames the rest.

What does your monthly electric bill look like?

Daly City average is $161 per month (EIA, 2024).