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System Size | Avg Cost (Before Tax Credit) | Historical 2025 Cost After Former Credit (Not Available in 2026)
L.A. homes typically need a 5kW to 7kW system, slightly smaller than the national average due to our high sun exposure.
Los Angeles is a tale of two utilities. Your savings depend entirely on who sends your bill.
If you have LADWP, you have an advantage. LADWP is a municipal utility and has different net metering rules than the big state utilities. This often means better savings and a shorter payback period (typically 6–7 years).
If you are in Santa Monica, West Hollywood, or other surrounding areas served by Southern California Edison (SCE), you fall under NEM 3.0. This means selling power back to the grid pays very little (~$0.08/kWh). For you, a solar battery is highly recommended to store your own power.
"The former 30% federal homeowner solar and battery credit is unavailable for installations completed after December 31, 2025."
"You may qualify for the Self-Generation Incentive Program (SGIP), which offers roughly $150 per kWh of battery storage installed."
Instantly reduce your electric bill 30-40% with Zero cost for solar panels, maintenance or insurance including battery backup.
In 2026, the average cost of solar in Los Angeles is roughly $3.14 per watt before incentives. A typical 7kW system is estimated at about $22,000 before other available incentives. The former federal homeowner credit does not apply to installations completed in 2026.
Yes. For SCE customers under NEM 3.0, solar is worth it if paired with a battery to store daytime energy. For LADWP customers, solar remains highly profitable with payback periods often under 7 years.
If you are an SCE customer, a battery is strongly recommended to maximize savings. If you are an LADWP customer, a battery is useful for backup power but not strictly required for savings.
