Independent solar advice in Los Angeles
LADWP full retail net metering vs SCE NEM 3.0 territory. Independent advice, no door-knockers, no commissions.
The federal residential solar tax credit ended on December 31, 2025. We tell you the truth about what is left in 2026: which state programs still apply, and which financing paths can still capture federal value.
Electricity rate as of 2026-06-01. Sun hours: NREL PVWatts v8, Los Angeles basin fixed-tilt south-facing annual average. Range across metro: 5.3 (coastal west side) to 5.8 (San Fernando Valley, SGV inland areas).. Cost per watt: EnergySage 2026 market data, Los Angeles metro. Range: $2.20-$2.75/W depending on equipment tier and installer.. Payback estimate assumes zero federal residential credit (Section 25D expired December 31, 2025) and current utility net-metering tariffs.
Your utility determines your savings
Los Angeles is a dual-utility city. Homes inside the City of Los Angeles are served by LADWP, a municipal utility that retains full retail 1:1 net metering. Homes in unincorporated LA County and many surrounding cities (Pasadena has its own utility; most of the basin uses SCE) fall under SCE and NEM 3.0. Your street address determines your utility. This distinction changes your estimated savings by thousands of dollars per year.
LADWP is a municipal utility exempt from the CPUC's NEM 3.0 mandate. Customers retain full retail 1:1 net energy metering. Every kilowatt-hour your solar system exports to the grid is credited at the retail rate you pay, estimated at 22 to 37 cents per kWh depending on usage tier.
Export credit: approximately 22 to 37 cents/kWh
Full retail 1:1 NEM. Verify at ladwp.com. Rate as of June 2026.
SCE customers are on the NEM 3.0 Solar Billing Plan, which took effect for new interconnections after April 2023. Under NEM 3.0, solar exports earn only 5 to 8 cents per kWh -- roughly 75 to 80 percent less than the retail rate. Battery storage becomes significantly more valuable for SCE customers: stored solar used during peak TOU hours at 35 to 40 cents per kWh avoids the most expensive grid purchases.
Export credit: approximately 5 to 8 cents/kWh (NEM 3.0)
Solar Billing Plan. Verify at sce.com/nem. Battery storage recommended for SCE territory.
Your address determines your utility. Look up your utility at ladwp.com or sce.com before reviewing any solar proposal. The net-metering difference affects your estimated annual savings by $1,000 to $1,500 on a typical 8 to 9 kW system.
Available programs
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| LADWP Residential Solar Incentive Program (RSI) Local/State Incentive | $0.35 per watt for the first 5kW installed (maximum $1,750). Current tranche active; tranches close periodically. Funding tranches close without notice when allocated funds are exhausted. Verify current tranche availability at ladwp.com/rebates before signing any contract. Rebate is not guaranteed until reservation confirmed. | LADWP residential customers with grid-tied solar systems up to 30kW. Must use a LADWP-approved contractor. | Active | DSIRE (opens in new tab) |
| CPUC Self-Generation Incentive Program (SGIP) -- Equity and Resiliency Local/State Incentive Waitlisted as of 2026-06-29. Apply early; verify at dsireusa.org. | $150 to $200 per kWh of battery storage for qualifying low-income and medical-baseline customers in SCE territory. LADWP has a separate equity-resiliency program (SGIP RSSE). The general SGIP residential incentive was converted to equity-only in 2023. Both the CPUC and LADWP equity-resiliency programs are fully subscribed with waitlists as of Q1 2026. Apply early; waitlist position is maintained when funding reopens. Verify waitlist status at cpuc.ca.gov/sgip before quoting. | SCE territory: SGIP equity/resiliency tiers only (income-qualified or medical-baseline). LADWP territory: LADWP SGIP RSSE program (separate application). Standard SGIP general incentive is NOT available to residential customers in 2026. | Waitlisted | DSIRE (opens in new tab) |
| California Solar Property Tax Exclusion Local/State Incentive | Excludes the added home value from solar installation from property tax assessment. Typical residential system: $15,000 to $30,000 in value excluded from reassessment. This exclusion sunsets December 31, 2026 under current California law (Revenue and Taxation Code Section 73). A solar system installed and permitted by December 31, 2026 locks in the exclusion for the life of the system. Systems installed in 2027 may not qualify if the Legislature does not extend the exemption. Verify current status at ftb.ca.gov before signing. | All California homeowners installing solar systems. Applies automatically upon permit filing. | Active | DSIRE (opens in new tab) |
| AB 1124 Permit Fee Cap Local/State Incentive | Solar permit fee capped at $450 for systems under 15kW. Statewide California law. No expiration date. California law. Applies to all AHJs in the state. | All California addresses with any AHJ. Statewide mandate; no city or county may exceed $450 for a standard residential PV permit. | Active | DSIRE (opens in new tab) |
Data last verified June 29, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Why Los Angeles homeowners are moving now
The January 2025 Palisades and Eaton wildfires burned a combined 37,000 acres and destroyed more than 16,000 structures in LA County, triggering the largest surge in residential battery storage inquiries in Southern California history. Hillside neighborhoods from Pacific Palisades to Altadena saw grid outages lasting days. Homeowners who had solar plus battery storage maintained power during mandatory evacuations. Rebuilding households in fire-affected zones and their neighbors in wildfire-risk corridors now prioritize battery backup as a first condition of any solar decision, not an optional add-on.
Source: January 2025 Palisades and Eaton Wildfires -- Los Angeles County (2025).
Illustrative example
Zero federal residential credit applied (Section 25D expired December 31, 2025). Figures are estimates based on market data as of 2026-06-29. Your numbers depend on your roof, your utility, and your bill.
LADWP territory, City of Los Angeles: an 8.5kW system at $2.43/W costs approximately $20,655 gross. After the LADWP RSI incentive ($1,750 for the first 5kW, current tranche), the estimated net cost is approximately $18,905. No federal residential credit applies in 2026 (Section 25D expired December 31, 2025). At LADWP's full retail 1:1 net metering with tiered rates averaging 22 to 31 cents per kWh for typical usage, annual savings range from approximately $1,900 to $2,600, producing an estimated payback of 7 to 8 years. SCE territory comparison: the same system under NEM 3.0's 5 to 8 cent export credit produces annual savings of approximately $900 to $1,400 without battery storage, extending the cash payback to 13 to 17 years. For SCE customers, pairing with a home battery converts the economics: stored solar used during peak TOU hours at 35 to 40 cents avoids the lowest-value export. Battery adds approximately $10,000 to $15,000 to the system cost but changes the SCE payback to approximately 9 to 12 years. All figures assume zero federal residential credit, current utility rate schedules, 5.5 peak sun hours per day, and 8.5 kW system size. These are estimates; contact an advisor for a site-specific calculation.
Ready to see what solar works out to for your Los Angeles home?
A free in-home assessment reviews your utility bill, your roof, your options, and every available incentive for your address. No pressure. No shared leads.
Neighborhoods we serve
Established solar saturation; higher installers per block, active neighbor referrals, and permit history at LADBS.
Designated disadvantaged communities (DAC) eligible for SGIP equity resiliency, DAC-SASH, and other income-qualified programs. Income verification required.
Wildfire-affected and adjacent neighborhoods where battery storage demand surged following the January 2025 fires. Rebuilding homeowners and proximate neighbors with elevated grid-resilience priorities.
Permitting and interconnection
LADBS adopted SolarAPP+ for standard residential systems. This reduces plan check from 2-4 weeks to 1-3 business days in many cases. Structural or electrical upgrades (panel replacement, reroof) add time and cost. Always confirm AHJ jurisdiction by street address before quoting permit timelines.
Your local Los Angeles advisor
[REVIEW TEXT - TO BE PROVIDED: real customer testimonial with system details and specific bill comparison]
System: 8.2kW rooftop solar, LADWP territory
[REVIEW TEXT - TO BE PROVIDED: real customer testimonial mentioning wildfire-resilience motivation]
System: 10.1kW rooftop solar plus Powerwall 3 battery, LADWP territory
[REVIEW TEXT - TO BE PROVIDED: real customer testimonial from SCE-territory home, mentioning NEM 3.0 and battery decision]
System: 9.4kW rooftop solar plus battery, SCE NEM 3.0 territory
For business owners and property managers
Los Angeles is one of the largest commercial solar markets in the United States. LADWP's Commercial Solar PV Program, combined with the federal Section 48E commercial tax credit (30 percent base credit for projects starting construction by July 4, 2026), creates a narrow and significant opportunity for LA businesses and property owners. MACRS accelerated depreciation adds further first-year benefit. After July 4, 2026, the construction-start window closes; projects must then be placed in service by December 31, 2027 to remain eligible. Schedule a free commercial site assessment to understand your timeline.
See commercial solar optionsCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
Schedule a Free Commercial AssessmentLos Angeles solar questions
City-specific answers. Every number references your utility and your permit office.
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An independent advisor visits your Los Angeles home, reviews your utility bill and roof, and explains every incentive available at your specific address. No pressure. No shared leads. No commissions.
