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System Size | Avg Cost (Before Tax Credit) | Avg Cost (After 30% Fed Credit)
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 biggest incentive. You get 30% of your total system cost (including batteries) back as a credit on your federal taxes."
"You may qualify for the Self-Generation Incentive Program (SGIP), which offers roughly $150 per kWh of battery storage installed."
"In Los Angeles, the value your solar panels add to your home is 100% exempt from property tax reassessment."
In 2026, the average cost of solar in Los Angeles is roughly $3.14 per watt before incentives. A typical 7kW system costs about $22,000 before the 30% federal tax credit is applied.
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.
